Compensation to landlords and owners for halting evictions

Landlords and owners affected by the judicial suspension of evictions have until 9 September to claim compensation from the State Housing Plan in those cases in which the judicial eviction procedure and, more specifically, the eviction proceedings have been suspended due to the economic vulnerability of the tenants or occupants.

Conten Table

compensation for owners

Landlords and owners affected by the judicial suspension of evictions have until 9 September to claim compensation from the State Housing Plan in those cases in which the judicial eviction proceedings and, more specifically, the eviction procedure has been suspended due to the economic vulnerability of the tenants or occupants.

We summarise the main points of article 3 of Royal Decree 401/2021 which regulates the compensation to landlords for the judicial suspension of evictions of people.

Compensation to landlords and owners for halting evictions

  • The application deadline is 9 September 2021.
  • The application must be made to the competent housing authority of the autonomous community. It must be accompanied by a reasoned and justified explanation of the compensation for the period between the time when the suspension of the eviction was agreed and the time when it is lifted or for reaching the time limit of 9 August 2021.
  • Three months must have elapsed since the issuing of the social services report, without the competent Administration having offered a housing alternative. The suspension of the eviction must have caused a financial loss and the owner is deprived of putting the property back on the market.
  • The compensation will be calculated on the basis of the following criteria:
    • The average value that corresponds to a rental of housing in the area in which the property is located. The average value is determined on the basis of rental price benchmarks or other objective references representative of the rental market. If this value is higher than the rent received by the lessor, the compensation shall consist of the rent foregone.
    • The current expenses of the dwelling that the lessor or owner proves to have assumed. In the period between the suspension being agreed and the time when it is lifted by the court or when the time limit of 9 August 2021 is reached.
  • The time limit for a decision is 3 months, but the time limit may be extended for a further 3 months, which must be notified. If there is no express resolution, the application is understood to have been granted by positive silence.

At Blegal we believe that this is an insufficient measure. The right to compensation should be effective from the moment the suspension of the eviction takes place.

If you are a landlord and you are affected by the suspension of evictions, contact us, we can help you.

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