If you wish to rent property in Barcelona (a real estate property), you must read this post.
The approval of the law was much celebrated by tenants’ rights associations, including the Sindicat de Llogateres who helped draft the regulation, as rent prices have increased by a staggering 36% in Catalonia from 2013 to 2019. In Barcelona, this rise is even more drastic: 43%, or an average of €297.25 per apartment, over the same period.
Coming into effect on September 22, the rent cap affects 60 cities and towns with over 20,000 inhabitants and with “tense housing markets”*, including the major cities of Barcelona, Girona, Lleida, and Tarragona. All 60 of these municipalities have seen average rent prices increase by at least 20% between 2014 and 2019.
In these areas where affordable housing is scarce, rents will be determined by the Catalan Housing Agency’s Average Price Index – you can look up relevant information on the size and the year your building was built online at the Spanish land registry website to see how your rent compares to others in the area.
This new law to regulate the rental market has generated much controversy, so in this post we will try to briefly clarify what it means and how it affects to owners and tenants.
FER-NE CINC CÈNTIMS**
Here’s everything you need to know about how it works in less than 2 min duration video.
To make it easier to understand the Law, here are the most important points:
What this regulation applies to?
This law has generated a lot of controversy among real estate agencies, owners, and tenants:
How can I increase the rent above the established limits?
If the home meets at least three of the following characteristics, you may increase the price of the rent obtained in the index by up to 5%:
– Community areas
– Concierge services in the building
– Special views
What expenses can be passed on to the tenant?
It is important to mention that, in addition to the rent, general expenses and individual services of the property can be charged to the tenant. To do so, it is necessary to detail it in the contract, and, every January, make a settlement, and justify to the tenant the amounts of those expenses. In the event that the tenant has been made to pay an extra amount, the difference must be returned. Among the expenses that can be charged to the tenant we can find the following:
– Ordinary community expenses
– Garbage collection
– Concierge service
What about new construction or refurbished homes?
In these cases, the regime will not apply to the housing. It will be considered new construction housing when the contract is formalized up to a maximum of five years after the end of the construction license. On the other hand, it will be considered as a major refurbishing when a construction project is in place, when the city council’s license marks “major renovation”, and when there is a certificate of end of construction.
I am about to sign a rental agreement for my second home. Does this law apply to me?
No, the law only applies to usual places of residence and not holiday homes.
I will soon be signing a new contract for my main place of residence. How does this law affect how much I will pay per month?
If you are signing a new rental contract for a house or an apartment that was rented out over the past five years under market value as determined by the Average Price Index, your landlord will not be able to increase rent.
For other new contracts, rent will not be able to exceed the average price for apartments and houses of the same size in the same area.
I currently pay over the average rent for homes in my area. Will my rent go down?
No, the law does not affect existing contracts.
Property Management in Barcelona
Kakdoma BCN property management department ready to assist you, advise you on everything you need to make the rental management a success and assure you that you will have maximum peace of mind by entrusting your management to Kakdoma BCN.
Also we can take care of your home in Barcelona.
*Tense housing market – a municipality is considered to have a “tense housing market” if it meets any of the following requirements:
- It has experienced a sustained increase in rent prices that is higher than Catalonia’s average
- If rents exceed 30% of a household’s average income or over the average income of people under 35
- If rent has increased by 3 points above the consumer price index in the past five years
**Fer-ne cinc cèntims – Literal meaning: Make it five cents. Real meaning: Give me the short version. Used when you want a quick summary of something because you don’t have the time (or patience) to chat.