The Royal Decree of Law regulating leases, in relation to the pandemic caused by COVID-19, has just been published in the BOE. We briefly summarize the Decree in the following aspects.
First of all, what is it and when can you apply for economic vulnerability?
A person is in economic vulnerability when they are forced to pay rent, despite being unemployed, ERTO, or have reduced their working days due to caring for Covid-19. It also includes employers or other similar situations which would result in a substantial loss of income.
To apply, one of the following cases must occur:
-Have a family unit income less than 3 times the IPREM (1,613.52 Euros).
This range will be increased in the following cases:
- 0.1 for each child in charge of the family unit.
- 0.15 for each child in charge of the single-parent family unit.
- 0.1 for each over 65 years in charge.
In the case of a member of the family unit having a disability greater than 33%, the limit is 4 times the iprem.
– That the rent, together with the basic expenses and supplies, is equal to or greater than 35% of the net income received by the whole family unit.
It cannot be considered as vulnerable if any member of the family unit living with the tenant has a property or usufruct of a home in Spain.
What help can I receive if I am a tenant and I am in a vulnerable state?
The following can be requested:
- ICOS microcredits with 0 interest, endorsed by the state. These microcredits will return to 6 years, extendable to 10 years. These grants will go directly to pay the rent in a maximum period of 6 months. To apply, you must prove a situation of economic vulnerability.
- In the case of not being able to return these microcredits due to continuing in a vulnerable situation once the alarm status for covid-19 has ended or you cannot pay the rent, you will have a help of up to € 900 at least per month. pay rent or return credit + 200 Euros to pay for supplies.
For homeowners with leased homes:
At the end of the alarm, evictions can be suspended extraordinarily for up to six months, provided that the economic vulnerability is proven in court.
On the other hand, an extraordinary extension of the rental contracts for the usual home can be made for a maximum period of six months, up to one month after the end of the alarm status. This request for overtime must be accepted by the landlord, unless an agreement is reached between the two parties.
As for the great holder (owners with more than 10 properties, excluding garages and storage):
Once the lessee has proven the economic vulnerability and in the event that there is no agreement between the parties, the lessor must notify the lessee, within a maximum period of 7 business days, of his / her chosen decision from the following alternatives:
- A reduction of 50% of the rent for the duration of the alarm period and the following monthly payments if at the end of the alarm the state continues to be in a vulnerable state, but in no case can it exceed the 4 months.
- A moratorium on rent payment that will be applied automatically and affect the duration of the alarm period. If, after the alarm, it continues to be in a vulnerable situation, it will continue the moratorium without being able to exceed 4 months in any case. These amounts will be apportioned on monthly installments for 3 years and will begin counting when the moratorium is over.
- The lessee is entitled to public assistance by lifting the moratorium and the division of monthly payments from the first month that he has the microcredit in his possession.