The government of Spain is set to pass laws which are aimed at offering better protection to landlords and tenants, in very different ways.
The minimum rental contract is expected to extended from three years to five, as well as reducing the maximum deposit from tenants of just two months.
In addition, the landlord must assume the costs of real estate management and formalisation of the contract if they are legal entities, such as banks, investment funds or real estate. Likewise, in this case the automatic extension of the contract would not be until seven years , if the tenant wants to keep it.
José Luís Ábalos, the Minister of Development, has announced the changes this week, explaining how the government is planning to fast track legislation so that it becomes law by the end of the year.
Elements of the decree still under discussion however include a limit on rental prices, and stricter management of them across the country so as to stabilise the sector, and previous plans of the government to regulate the sector in 2019.
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