The seven questions you need to know about rent price limitation and tense areas
We explain where it applies, to which contracts, what a large holder is, or what tax benefits this measure has, among other topics.
Since March 16th in Catalonia, a regulation limiting rental prices has been enforced, a measure that was planned in the Right to Housing Law. On March 15th, the State Secretariat for Housing and Urban Agenda published the resolution regulating a reference price index, which must be applied in certain cases in areas declared as tense residential markets.
WHERE DE MESURE APPLIED?
Catalonia is the only autonomous community that has adhered to this measure. Specifically, 140 municipalities have been declared as part of the tense area of Catalonia, of which 17 are in the province of Girona: Figueres, Girona, Salt, Sarrià de Ter, Banyoles, la Bisbal d'Empordà, Blanes, Lloret de Mar, Olot, Palafrugell, Palamós, Porqueres, Puigcerdà, Ripoll, Sant Feliu de Guíxols, and Santa Coloma de Farners.
TO WHICH CONTRACTS?
The rent price limitation applies to contracts signed from March 16, 2024, in towns located in tense areas. Additionally, it will be necessary to distinguish whether the landlord is a large holder or not. Towns that are not in tense areas are not affected, and the rent price can continue to be determined freely.
WHO HAS THE STATUS OF LARGE HOLDER?
In tense areas, the definition of property owners considered as large holders also changes. On one hand, the previous regulation is maintained, meaning a large holder (across all territories, regardless of whether it is a tense area or not) is someone who owns more than ten urban properties for residential use or a built area of more than 1,500 m2 for residential use (excluding garages and storage rooms). In Catalonia, in tense areas, in addition to the previous definition, a large holder is also someone who owns five or more residential properties located within the total of 140 municipalities.
HOW CAN I KNOW THE REFERENCE INDEX?
To check the corresponding reference index, you need to visit the website of the Ministry of Housing and Urban Agenda at the following link https://serpavi.mivau.gob.es/ and enter the requested data. The result will display a lower and upper range upon which the rent price can be applied.
HOW IS THE RENT PRICE LIMITATION APPLIED IN TENSE AREAS?
The determination of the rental price to be applied in new contracts depends on whether the landlord is a large holder or not.
If not a large holder: the rent of the new contract cannot exceed the rent of the previous lease, properly updated.
If a large holder: the lower of the two rents is applied, either the one derived from the reference price index or the rent from the previous lease, properly updated.
If it's a property that hasn't been rented out in the last five years: in this case, the rent derived from the reference price index is directly applied.
IN WHICH CASES CAN THE RENT INCREASE BY 10%?
The rent can be increased by up to 10% in four scenarios. These are:
- When the property has undergone rehabilitation completed in the two years prior to the date of the new lease agreement.
- When the property, in the previous two years, has undergone rehabilitation or improvement actions where a 30% non-renewable primary energy saving has been proven.
- When the property, in the previous two years, has undergone accessibility improvement actions.
- When the lease agreement is signed for a period of ten years or more.
If you have any questions after reading this article, you can contact any of our offices: Girona, Figueres, Roses, or Llançà, we will assist you in a personalized manner!