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The conditions that a tenant needs to know to negotiate a rent increase with their landlord - Infobae
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Las condiciones que un inquilino tiene que saber para negociar la subida del alquiler con su casero
En 2024, la actualización anual de la renta se limita al 3%, pero el principal problema lo tienen las familias y los jóvenes que finalizan contrato
www.infobae.com
January 4, 2024
In 2024, the annual rent update is limited to 3%, but the main problem is faced by families and young people who end their contract.
By Victor Lopez Fernandez
A couple of tenants negotiate the conditions of the contract. (Freepik)
The rental price closed 2023 with a year-on-year increase of 10%, mainly motivated by the strong imbalance that exists between supply and demand. In Madrid , for example, the square meter reached 16.76 euros on average last October , only behind the Balearic Islands , with 16.97 euros per square meter. Rents in the rest of the map were around 11.23 euros per square meter, according to data from Fotocasa . The Government, to avoid “ uncontrolled increases ”, implemented a limit on increases of 2% year-on-year during the last two years. The percentage, however, changes in 2024.
The annual rent update is limited this year to 3%. With this formula, a tenant who pays 1,000 euros per month for the rent of their home will not be able to receive an increase from their landlord of more than 30 euros per month . The idea for the next few years is to create a new, more stable index that is below the evolution of prices , so as to limit increases in year-on-year income. This index will remain in the hands of the National Statistics Institute (INE).
The measures to contain the price of rents are governed by the Urban Leasing Law (LAU), which has been in force since March 2022. In the last two years, updates were limited to around 2%. In 2024, owners will have to negotiate with their tenants the corresponding contractual renewal . If no agreement is reached, landlords will not be able to impose an increase of more than 3% of the rent. In this context, the Rental Negotiation Agency (ANA) has detected the proliferation of new formulas to avoid the established limits. Landlords try to camouflage their properties with seasonal , office, tourist or industrial use contracts, when what we really have in front of us is a regular rental of housing. This is illegal and may result in penalties.
What happens to leases that end in 2024?
This year, the annual rent update is limited to around 3%, but the main problem is faced by families and young people who end their contract. The minimum legal duration of the rental contract depends on the date it was signed. In 2019, a rule came into force establishing that tenants have the right to a minimum contract of five years - seven if the landlord is a legal entity. In this sense, if the relationship comes to an end in 2024, landlords can force tenants to leave the rented property , with four months' notice.Tenants cannot demand any type of extension, but they can negotiate with the owner to try to continue in the home with another contract and similar conditions. The Organization of Consumers and Users (OCU) recommends using the history as a good tenant , payments on time and the good condition of the property as points in favor . The key is to negotiate an income that is somewhat higher than the previous one but is below current market prices . Families who simply have to update their contract in 2024 should know that the rent may increase by up to 3% , although they have the possibility of negotiating a lower percentage with the owners.
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