Okify asks real estate leaders about the new Housing Act
Mikel Sanzol, co-founder of Okify, interviews some of the most prominent leaders in the real estate sector, including Eduard Solé, partner and COO of Monapart.
Highlights of the new housing law
Gerard Espuga, lawyer and partner at Beta Legal: "Some of the legal novelties foreseen by the Law on the Right to Housing (Law 12/2023, of 24 May) require the intervention of other Administrations with competences in housing matters, such as the Autonomous Communities, so that their full application will depend on the area of Spain where the property is located.
Other aspects are not new for professionals working in the Autonomous Community of Catalonia, such as tensioned zones, the limitation of income and the concept of Large Holder, given the regulations in this area that have been approved over the last few years.
I would therefore highlight the following as the main new features of the regulation:
- The obligation of the owner of dwellings located in stressed areas to collaborate with the Administration by providing information on the use of the dwelling.
- The obligation to provide certain information and documentation to buyers/lessees prior to the delivery of any amount (reservation).
- Not being able to charge intermediation fees to tenants for rent.
- Add an extraordinary extension of 1 year, after the legal deadlines have expired, for tenants in vulnerable situations when landlords are major landlords.
- Add an extraordinary extension of up to 3 years in stressed areas.
- The setting of rent updates in existing contracts.
- The inclusion of admissibility requirements in lawsuits seeking the recovery of possession of a dwelling, with the accreditation of the occupant's situation of vulnerability and prior conciliation/mediation, when the owner is a major tenant.
- And the inclusion of a scaling of tax benefits to encourage new housing rental contracts".
Small real estate agencies in the face of the new housing law
Eduard Solé, partner and COO of Monapart: "The main fear of many agents is related to the collection of fees from the landlord. Until the new law came into force, in most of Spain's Autonomous Regions only the tenant was billed a fee, which had to be paid by the tenant, despite the fact that the agent's service was contracted by the owner of the property. However, the fact that some agents are afraid to defend their service and its price does not mean that the previous situation was fair. In fact, in my opinion, it was totally irregular for the tenant to have to pay for a service contracted by the landlord.
I believe that the new law imposes a much more reasonable practice, so my recommendation to small agencies is that they should not be afraid to offer an adequate fee for their services. When a client is not willing to pay for a service, it means that they do not value it and therefore it is a service with a lot of potential for failure. In addition, I suggest that they be creative in their approach to their service at all levels".
The influence of the new housing law on the supply and demand for rental housing
Gustavo López Pecho, COO of API Catalonia: "In my opinion, the cap on rent and the legal insecurity generated by the change in regulations regarding evictions for non-payment will only lead to more and more owners not taking the risk of putting their property up for rent, therefore, with a drop in the number of properties on the market, the price for renting properties from owners who do take the risk will be higher, making the current problem even worse.
It is clear that we have to help citizens who have problems with access to housing, but not at the expense of the private sector, as the administrations always do. It's cheaper for them to screw landlords than to make a decent housing policy for the next 25 years and solve the problem once and for all".
How will the ban on passing on property management fees to the tenant in the new housing law affect landlords and estate agents?
Lorena Andrea Zenklussen, CEO of Comprar Casa España: "At Comprarcasa we believe that this limitation may have a substantial impact on those real estate agencies that are very focused on the rental market and those tenants who came to real estate professionals for a search service or personal shopper. Our experience and work in representation, leads us to bet on the comprehensive rental management service for owners, seeking to give them as well as tenants, information, transparency and expert advice, within the new framework that the law imposes".
The definition of "large holders" and its impact on the market
Kastor del Olmo, COO of Nester: "The truth is that this new definition, which in our opinion is a "patch", does not solve the housing problem we are experiencing in this country. It is a short-term solution that does not take into account the dynamics of the market itself. It is a measure whose impact is already being felt, as it generates legal uncertainty and doubts for small and large property owners who, faced with this situation, withdraw their properties from the market in search of greater clarity or other alternatives that do not provide a solution to the lack of housing.
In the end, I think the wrong references are being taken: what separates someone who has 4 flats from someone who has 5? Those who have 4 are not part of the problem but those who have 5 are? I think we should not look at the quantity but rather look for solutions that make it easier for those who have 4, 5 or 10 flats to have incentives to rent those flats and make them affordable for everyone".
The measures to regulate evictions in the new housing law - how do they impact on landlords and tenants? What role does rent default insurance play?
Luis Cuervo, CEO of DAS: "The new Housing Act brings with it numerous measures with a direct impact on both landlords and tenants. Designed to protect tenants in vulnerable situations, small and large property owners now have to face new obligations when filing a lawsuit to recover possession of their properties. Although the procedures are different for each of them, their implementation means a delay in eviction procedures. At DAS Seguros, as a company specialising in legal protection, we continue to study the best way to comply with these new requirements while reducing the impact on property owners.
With the feeling of insecurity and helplessness growing among landlords and the current political instability expected to continue, the role that specialist and regulated companies such as insurers play in the property market is crucial. With solutions such as Renters' Default Insurance, landlords find a solution that looks after their interests and those of their property. A protection that leads landlords to keep their properties in the market - already stressed before the approval of the new Law -, avoiding a contraction of the market".
