Tenant support and lease modifications

Conten Table

Aid for tenants and lease modifications

This last week of January 2021 has brought several new developments in terms of aid for tenants and lease modifications. You can consult here the article on new aid for the self-employed and ERTE.

Aid for commercial establishments

The Generalitat de Catalunya has approved a grant of 3,750 euros (one-off payment) for commercial establishments that are closed due to COVID.

Main requirements:

  • Establishment with a surface area of more than 400 m2, or located in a shopping centre and without direct access to the street.
  • Be self-employed or an SME.
  • The activity is suspended by order of the Catalan administration (not the state administration, order SLT/1/2021 and instructions SLT/67/2021 and SLT/1/2021).

Tenant support and lease modifications

At the national level, Royal Decree-Law 2/2021 brings several modifications of a more or less technical nature in the field of leases. We also include other previous amendments that had not merited their own right.

Halting evictions due to vulnerability

  • In verbal eviction trials for non-payment of rent or similar amounts, the tenant who is in a situation of vulnerability will be able to request the extraordinary suspension of the procedure.
  • This measure will cease to have effect when the state of alarm ends (for the time being, on 9 May 2021).
  • The tenant (defendant) will have to prove the situation of vulnerability in the terms of article 5 of RDL 11/2020, mainly: being in a situation of ERTE with the income limit of the same article or that the rental income, plus basic expenses and supplies, is greater than or equal to 35 percent of the net income received by all the members of the family unit).
  • The lessor may oppose to the extent that he/she can prove that he/she is in the same situation of vulnerability. In other words, this measure affects all procedures, not just large landlords.

Stopping oKupas evictions

  • Verbal trials in which the claims referred to in sections 2 (goods ceded in precariousness), 4 (recovery of possession of a thing or right) and 7 (effectiveness of rights in REM against whoever opposes them) of Article 250.1 of Law 1/2000, of 7 January, on Civil Procedure, are substantiated, the judge shall have the power to suspend the launch until the end of the state of alarm.

Requirements:

  • The dwellings must belong to legal entities or natural persons who own more than ten dwellings.
    that the persons who inhabit them without title are in a situation of economic vulnerability due to being in one of the situations described in letter a) of article 5 (see previous section).

The judge will take into consideration:

  • The circumstances relating to whether the entry or stay in the property is motivated by a situation of extreme need. For the purpose of analysing the state of need, the report of the social services issued in accordance with the following section shall be appropriately assessed.
  • Circumstances relating to the cooperation of the inhabitants of the dwelling with the competent authorities in the search for solutions for a housing alternative that guarantees their right to decent housing.
  • Whoever inhabits the dwelling without title must be a dependent person in accordance with the provisions of section two of article 2 of Law 39/2006, of 14 December, on the Promotion of Personal Autonomy and Care for Dependent Persons (EDL 2006/311189), a victim of violence against women or have a dependent person or minor living with them in the same dwelling.
  • The social services will issue a report on the measures to be taken.

Exceptions

The provisions of this article shall not apply in the following cases:

  1. When it has occurred in a property owned by a natural person, if in said property he/she has his/her habitual residence or duly accredited second residence, without prejudice to the number of dwellings of which he/she is the owner.
  2. In cases in which it has taken place in a property owned by a natural or legal person who has ceded it by any legally valid title to a natural person who has his or her habitual residence or duly accredited second residence there.
  3. If the entry or stay in the property has taken place by means of intimidation or violence against persons, i.e. forcing the door is no longer possible.
  4. When there are reasonable indications that the property is being used for illegal activities.
  5. In cases in which the entry or stay has taken place in publicly or privately owned properties destined for social housing and the housing has already been assigned to an applicant by the administration or entity that manages said housing.
  6. When the entry into the dwelling has taken place after the entry into force of this Royal Decree-Law.

Extraordinary lease extensions

Contracts that end after the entry into force of this royal decree and before the end of the state of alarm (for the time being, 9 May 2021) the lessee may request an extraordinary extension for a period of up to 6 months unless there has been prior agreement or the lessor needs it for himself or his immediate family members.

Temporary rent deferral

Tenants who can prove a situation of vulnerability and in cases where the landlord is a large landlord may request a temporary deferment for the payment of rent until the end of the state of alarm, provided that said deferment or the total or partial remission of rent has not already been achieved voluntarily by agreement between both parties”.

Photo by Toa Heftiba on Unsplash

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