The high rental prices have brought a series of measures established by the Government in order to limit prices. Like the rental reference index establishes the maximum percentage that the landlords can rise to the tenant every year, certain limitations are also set when raising the price of housing in new contracts. Despite this last limitation, the law also includes some cases in which Homemade can ‘skip’ that stop and charge up to 10% of the amount they had been receiving so far.
The first thing to be clear about is that, as explained by the Ministry of Housing, this regulation affects the new contracts signed for rented homes that are within the areas declared as tension. In these cases, article 17, sections 6 and 7 of Law 29/1994, of November 24, on Urban Leases (LAU) establishes the LICMites that can be charged for the new rentals.
In these cases the amount of new rental It may not be greater than the last income of the previous contract “That he would have been in force over the last five years in the same home” after applying the update clause, nor can new expenses be included that were not collected in the previous contract. Despite this, there are some cases in which the rent can be uploaded above this update limit and the landlords can charge their new tenants up to 10% more.
Cases in which homemade can charge their new tenants up to 10% more for the house
The law provides some cases in which the landscapes may exceed this income update clause for new housing contracts located in tension areas, as long as this increase does not exceed 10%
These are the cases in which they can do so As explained by the Ministry of Housing through its website:
- When they have been done Housing Rehabilitation Worksaccording to the terms provided in section 1 of article 41 of the Regulation of Income Tax of natural persons, which would have ended in the two years prior to that of the new contract.
- When in the two years prior to the signing date of the new contract they have been made works to improve energy efficiency of housing that suppose a non -renewable energy saving of 30%
- When in the two years prior to the new contract they have made works to improve accessibility.
- When a C is signedOntrate for a period of 10 years or moreeither there is an extension period in the same conditions that reach that duration.
If the owners are considered a large holder, the limits applicable in the income of the new contracts will be those stipulated in the reference price indices system. As with the homes located in tension areas that would not have been rented in the 5 years prior to the new contract.