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PROPERTY

What you need to know about Barcelona’s new rent caps

The Catalan government has passed a new law to try and tackle the problem of rising rents and greedy landlords, especially in Barcelona, by capping rental prices in neighbourhoods deemed to have a dearth of affordable housing.

Published: 23 May 2019 17:11 CEST
Updated: 22 September 2020 13:11 CEST
What you need to know about Barcelona's new rent caps
Photo: Joselyn Erskine-Kellie/flickr

Which areas are affected?

The declaration of a zone as an “unstable housing market” can be made by Barcelona’s City Council or the Housing department of the Generalitat (Catalonia’s regional government) if the area meets the criteria outlined in the law.

The zone is only declared after completion of a detailed study carried out by the relevant housing authority.

Smaller municipalities may, on their own initiative, request to be declared an unstable housing market and introduce the capping if they present a report justifying the status.

READ MORE: 

What’s the criteria?

In order to be categorized as an “unstable rental market” and subject to the new law, it must be shown that rents in the zone have experienced a “sustained” increase at a cost clearly above the average.

It can also be applied if it shown that the increase in demand outstrips the availability of affordable housing or if the prices rises have significantly risen above the reference index pricing of the area.

In those zones, the rental price will be capped at 10 percent above the price per square meter of the reference index.

No zones have yet been created but will be established in the coming months. Much of central Barcelona is likely to be affected.

Data published on El Periodico showed that between 2014 and 2016 alone rent had soared in Barcelona's most desireable neighbourhoods, rising a whooping 25 percent in  Diagonal and Poblenou districts and 33 percent in Torre Baró.

What’s the reference index of rental prices?

Known is Spanish as the índice de referencia and in Catalan as L’índex de referencia, the reference index is calculated according to bond price data on Incasól. It’s basically an average price worked out per square meter according to the exact location and general condition of the property.

But it is not an exact science, so if one property is in outstanding condition in a down-at-heel neighbourhood, it won’t necessarily be reflected in the index price.

To work out the reference index in a particular area, the Catalan housing department has a tool which calculates price based on square meterage, location and condition.

Exceptions for a view, garden or swimming pool

The price can rise above the 10 percent cap if the property has an “exceptional feature” such as a particularly desirable view or if the property comes with communal gardens or a community pool.

New build or refurb?

New-builds or recently refurbished apartments also come with an exemption, this time of 20 percent above the reference index within the first five years of construction work.

In order for a property to qualify for special treatment the owner must make an “exceptionality application”.

Could this affect my current rental contract?

The new law will insist that any annual rise in rents on current contracts be based according to the Competitiveness Warranty Index – Índice de Garantía de Competitividad (IGC) in Spanish – a government index designed to combat inflation and promote the competitive gains of Spain in relation to the European Union.

Effectively, that means annual rental increases can only rise by the rate recorded in the IGC, which currently stands at -1.5 percent. Tha doesn’t mean that your rent will decrease it just means it will be frozen until such a time as the rate rises above 0 percent.  

When will the rent caps come into force?

It could still be months away.

The measure, which has been brought in by Catalonia’s regional government needs to be ratified by parliament within 30 days. Even then it could yet be appealed before the Constitutional Court.

Authorities will then begin studies to zone neighbourhoods where the rental market is unstable.

READ MORE: What you need to know about Spain's new rental laws

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For members

RENTING

The rules and small print for a rental contract for a room in Spain

Renting a room in Spain can often be easier and cheaper than trying to rent a whole apartment or house for yourself, but there are still several things you need to look out for in your rental contract and small print clauses you need to be aware of.

Published: 17 September 2024 09:28 CEST
The rules and small print for a rental contract for a room in Spain

Sharing a flat in Spain may of course not be your first choice; in 55 percent of cases people here do so because they can’t afford their own place. 

Renting a room is now almost 10 percent more expensive than a year ago, according to recent data published by property portal Idealista, costing almost double in 2024 than it did nine years ago.

The national average for renting a room is now €488 per month.

If you’ve come here to be a student or to learn Spanish though, renting a room can be excellent choice.

Due to Spain’s housing crisis and financial constraints, renting a room is no longer only an option for young people in Spain. In fact, in 2022 Idealista found that the average of a person sharing a home in Spain was 34. 

READ ALSO: Renting a room in Spain costs 90% more than in 2015

Renting a room is increasingly popular in Spain, especially in those cities where rent is very high, such as in regional capitals. 

While your contract for renting a room may not be extensive as renting a whole property, it’s still very important that you have one to make sure that you’re protected.

A room rental agreement not only ensures that both parties are clear about their rights and responsibilities, but also avoids potential misunderstandings and conflicts.

Typically, when you are renting una habitación, your room will be your space, but you will have shared access common areas such as the kitchen, living room and bathroom. 

READ ALSO – Aval: How to get a bank guarantee to rent a property in Spain

Factors to keep in mind when renting a room in Spain:

Tenants do not have the right to continue to live in the home beyond what is stipulated in the contract, so your landlord will have greater control over the property.

It is important that the room rental contract specifies the purpose of renting the room and how long it’s for. Generally, this type of rental is regulated by the Civil Code, but it could also be subject to the Urban Lease Law (LAU), even though the existence of this type of lease is not specified.

The room should include basic furniture, and the landlord is responsible for paying the bills initially, although they may be included in the rent.

There’s no minimum legal content that room rental contracts must contain, and it is not even mandatory for it to be in writing. But it is still advisable to get one in writing in order avoid future problems.

READ ALSO: The pros and cons of signing a temporary rental contract in Spain 

According to property website Idealista, room rental contracts should contain these following elements:

  • The duration of the contract.
  • A statement saying exactly which room is being rented out.
  • The rental price, as well as the payment method with which the tenant will pay the rent and when it will be due each month.
  • The services that are included, such as the use of the kitchen and being able to connect to the internet.
  • It’s also important that there’s a clause to say how payments should be divided in case of any unforeseen circumstances.
  • It must be indicated if subletting the room is allowed or not. As stated in the Civil Code this may be possible if your contract doesn’t specifically state that you can’t.
  • If the property is rented by several people, the contract must be formalised between all tenants through a single rental contract and tenants will appear in the same contract.

READ ALSO: Is subletting legal in Spain? 

How to tell if a room rental contract is legal in Spain

For a room rental agreement to be legal, it must contain the following information:

  • Full names, DNI or NIE number, address and telephone number of both the landlord and the tenant.
  • Specify the exact address of the home, the rented room and the common areas the tenant has access to.
  • The start and end date of the contract.
  • The amount of the deposit and the return conditions. It is not mandatory to provide a deposit, but landlords can request it.
  • The monthly rent, the payment method and how to make the payment.
  • It must state who is responsible for the necessary works and repairs in the home.
  • A clause must be included stating who responsible for community expenses, water, electricity, gas, etc.
  • The text must state the conditions for termination of the contract, such as non-payment of rent or failure to comply with the rules or the landlord selling the property.
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