Is Spain finally going to be for rent?

Now, the Popular Party (PP) government of Prime Minister Mariano Rajoy is planning to bring more flexibility to the rental market with a set of measures that make it easier for landlords to get their properties back and for tenants to terminate their lease.

For instance, once the reforms are enacted, owners may demand that a tenant leave the property at any time regardless of the duration of the lease, while tenants will be able to walk out with just one month’s notice. Until now, contracts were for five years by default, and a further three if neither party said anything to the contrary. The executive wants to bring these periods down to three years and one year, respectively.

Here is more, mostly covering the reasons why Spain has overinvested in home ownership.

Comments

"owners may demand that a tenant leave the property at any time regardless of the duration of the lease": then in what sense is it a lease?

Quoting Wikipedia:

A tenancy at will is a lease which either the landlord or the tenant may terminate at any time by giving reasonable notice.

I recall in "Order Without Law" Robert Ellickson giving a defense of certain laws favoring tenants from being evicted as being economically efficient, but I never found that very plausible.

Comments for this post are closed