Spanish Landlords Could Owe Tenants 12 Months’ Rent to End Leases

Landlords in Spain could soon have to pay tenants at least 12 months’ rent, based on the cost of a comparable property, if they decline to renew a lease without a qualifying reason.

The Spanish government outlined the measure on Oct. 8, two days after approving a new package of housing reforms aimed at addressing the country’s housing crisis.

The measure would make it more expensive for landlords to end rental agreements simply to seek higher-paying tenants.

However, the proposal still needs parliamentary approval before it can take effect, potentially on Nov. 15.

Landlords Would Face New Rules For Ending Leases

Under the government’s proposal, landlords who choose not to renew qualifying residential leases would generally have to compensate tenants with the equivalent of at least 12 months’ rent for a comparable property.

Exceptions would include an individual landlord needing the property for personal or family use, a tenant who has not lived there for six months without a valid reason, or a tenant who has another suitable home in the same municipality.

Landlords would also have to provide six months’ notice rather than four. Tenants would continue to have a two-month notice requirement.

The proposed rules would apply after leases reach their minimum duration, generally five years for individual landlords and seven years for companies.

Pensioner’s Eviction Fuels Housing Debate

The housing reforms come amid widespread anger over the eviction of 87-year-old Maricarmen Abascal, whose case became a symbol of Spain’s housing crisis.

Abascal had lived in her Madrid apartment building for more than 70 years. She was evicted on Sept. 23 after a dispute over steep rent increases, prompting protests and demands for stronger tenant protections.

Although an agreement was eventually reached allowing her to return home, Abascal died before she could move back, according to Reuters.

Spain’s parliament rejected two earlier emergency housing decrees on Oct. 2, leaving the government to develop another approach.

The revised proposal would not automatically prevent landlords from ending leases. Instead, it would require compensation in many cases where no qualifying reason exists.

For tenants facing an uncertain housing market, the measure could provide financial assistance toward finding another home, if lawmakers approve it.

What do you think? Are these extreme measures putting too much pressure on landlords? Or is it necessary to protect Spanish tenants from being kicked out just to seek higher payments?