I. What does Updating a Rental Fee Entail?
Updating a rental fee is a crucial process for both landlords and tenants in the Spanish real estate market. This update aims to adjust the rental price according to economic conditions and inflation, ensuring a fair balance for both parties. To better understand this process, it is essential to consider that rental contracts are often stipulated for a specific period, such as one year, and, at the end of this term, it is customary to review and update the rent.
With the recent enactment of the Law 12/2023, of May 24, for the Right to Housing, new limitations have been introduced that directly affect this process. The law’s main objective is to safeguard the right to decent housing, promoting affordable and fair access for both landlords and tenants. However, these modifications have raised certain doubts and concerns among both parties.
II. Key Points of the New 2023 Housing Law
The new law introduces several significant changes in the rental market and its update. The key points of Law 12/2023 are as follows:
a) Rent Freeze in Cases of Vulnerability
In situations of economic vulnerability, the new law establishes that rental fees can be frozen, thus avoiding disproportionate increases that may affect vulnerable tenants. To benefit from this protection, the tenant must meet specific requirements, such as being unemployed or suffering a significant loss of income.
b) Limitation of the Reference Index of Rental Prices (IRPA)
The IRPA is an indicator used to calculate the maximum allowed increase in rent. With the new law, a maximum limit is set for the increase of the IRPA, which may affect the amount of the update and its relation to inflation. This limitation aims to prevent abuses by landlords who might attempt to apply excessive rent increases.
c) Increased Tenant Protection against Evictions
Law 12/2023 also introduces protective measures for tenants facing eviction, ensuring respect for their right to decent housing and preventing abusive practices by some landlords. This protection particularly focuses on vulnerable groups, such as large families, disabled individuals, or elderly people.
III. How to Update a Rental Fee under the New Law
With the new legislation in force, the process of updating a rental fee involves several important steps:
a) Review of the Rental Contract
First and foremost, it is essential to review the rental contract to understand the terms initially established and verify whether there are specific clauses related to rent updates. Some contracts may stipulate a particular mechanism for the update, while others may leave it to the discretion of the parties involved.
b) Calculation of the Update
The calculation of the rental fee update must be carried out according to the provisions of Law 12/2023. It is necessary to consider the Reference Index of Rental Prices (IRPA) and apply the maximum percentage of allowed increase based on the established limitations. This process may be complex for those unfamiliar with the law and applicable indexes, so seeking the advice of a specialized real estate attorney is recommended.
c) Notification to the Other Party
Both the landlord and the tenant must be notified of the proposed update, providing relevant information and calculations in a clear and detailed manner. This notification should be made sufficiently in advance of the contract’s expiration or in accordance with what is stipulated in the rental contract.
d) Agreement between the Parties
Ideally, both parties should reach an amicable agreement regarding the rental fee update. However, in case of disagreement, it is important to seek legal advice from real estate experts like those at Quikprokuo. An attorney can mediate in the negotiation process and help achieve a satisfactory solution for both parties.
At Quikprokuo, as experts in real estate and urban development law, we understand the importance of staying up-to-date with the latest laws affecting the Spanish real estate market. Law 12/2023, of May 24, for the Right to Housing, has introduced significant changes in the process of updating rental fees, aiming to protect both landlords and tenants and promote a fair balance in contractual relationships.
It is crucial for landlords and tenants to be informed about their rights and obligations regarding the update of rental fees under the new law. At Quikprokuo, we are committed to providing specialized legal assistance and ensuring our clients are fully aware of their rights and responsibilities. Our team of expert attorneys is prepared to guide landlords and tenants through the process of updating rental fees under the new law.
If you need advice on how to update a rental fee under the new 2023 housing law, or if you have any other inquiries related to real estate law, do not hesitate to contact us. Our team of specialized attorneys will be delighted to assist you and provide the necessary guidance to make informed decisions and protect your interests.
At Quikprokuo, we work passionately and diligently to offer effective legal solutions and ensure the peace of mind of our clients in the real estate field. The update of rental fees can be a complex process, but with the right guidance, it can be conducted fairly and equitably for all parties involved.
Visit our website to discover how we can assist you with your legal needs in the field of real estate law in Spain. We are here to support you every step of the way!