Buy to Rent: screening the tenant (III)

As we have indicated in previous articles, the acquisition of a home to rent it later is an investment that many consider profitable. However, with the new housing law, one of the biggest concerns for landlords is the possibility of facing the so-called "inquiokupas", tenants who fail to comply with their obligations and who, given the existing protection laws, may be difficult to evict.

In this context, it is essential to know the current regulations in order to have a clear framework on what to do and how to act. The following is a summary of the most relevant aspects that a landlord should consider:

1. Suspension of Evictions:

Even before the new Housing Law there was a suspension of evictions for vulnerable tenants whose validity has been extended until December 31, 2023. In any case, an eviction procedure is always slow, costly and insecure (legally speaking). Because in the end you will always depend on the decision of a judge, and what judge is going to evict a family with dependent minors who have run out of income and have no other "housing option"?

2. Who cannot be evicted?

It protects tenants who are in situations of economic vulnerability that prevent them from accessing alternative housing.

3. Family Situation:

It is not only the tenant who is protected. If they live with their family and are in a situation of economic vulnerability, they cannot be evicted.

4. Definition of Vulnerability:

Being unemployed, having suffered a substantial loss of income or a drop in turnover of at least 40% are some of the situations that qualify as vulnerable. In addition, there are income thresholds for the family unit that determine this situation, and they are adjusted according to the monthly IPREM and the circumstances of each unit (for example, number of children, presence of elderly or disabled people, etc.).

5. Crediting Vulnerability:

There are a number of documents that the tenant must present to prove vulnerability. These include unemployment certificates, documents proving the economic situation, and proof of the composition of the family unit.

6. Procedure:

If a tenant is in a situation of vulnerability, he/she must present the appropriate documentation to the court and request a report from the competent social services. This action involves a series of legal steps and procedures.

7. Right of Compensation for Landlords:

Landlords have the right to request compensation in the event that measures are not taken by the competent administration to address the tenant's situation of vulnerability. This compensation is based on the average rental value in the area where the dwelling is located, plus assumed current expenses.

8. Deadline for Submitting the Application for Compensation:

Compensation can be applied for until July 31, 2023.

As a landlord, the most important factor when renting your property is to properly screen the tenant. You must avoid your future tenant being a person likely to be categorized in what the Ministry of Social Rights and Agenda 2030 has defined as a "vulnerable person".

However, if it is too late for that, it is essential to be proactive and always seek amicable agreements with tenants, avoiding reaching extreme situations. The best possible agreement is the one that does not go to court. Also, remember that you are fighting against an insolvent person, so you will probably never be able to recover expenses and court costs.

It is crucial to be informed and prepared in case you face an unfavorable scenario. Remember that you can always count on the support of legal experts to ensure that your rights as a landlord are respected.

Whether you are thinking of buying to rent or you already have a property with a current rental contract and want to be protected, do not hesitate to contact us. It's a free, no-obligation call so you have nothing to lose.