Who pays the agent if the new Housing Law exempts tenants?

In the real estate scene in Spain, the recent approval of the new Housing Law has generated a relevant debate: Who assumes the real estate agents’ fees if the regulation exempts tenants from this responsibility? Discover the implications and new features of this legislation in order to make the right decisions. Read on to learn more about this important reform in the Spanish rental housing market!

The Housing Act and tenants: Who pays the agent?

The new Housing Law is a regulation that regulates various aspects related to leasing. It establishes rights and obligations for both landlords and tenants. 

This law aims to protect tenants and regulate the rental market.

As for the payment to the agent, it is generally the landlords who bear the costs of the real estate agents. Since they are the ones who hire the agents to find tenants and manage the leasing.

However, there are situations where it may be possible to agree with the tenant to assume part of the agent’s fee. This must be clearly stated in the lease and cannot be a general practice.

All of this is because the new Housing Law protects tenants’ rights. Many of the measures they have modified prevent excessive charges from being imposed on them.

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New Housing Law: landlords pay agency fees

The new Housing Law brings an important novelty: the owners of rental housing will have to pay the fees of real estate agencies. As reported by the spokespersons of ERC and EH Bildu, Pilar Vallugera and Oscar Matute.

In this sense, the new Housing Law establishes that the lessor must always assume the costs of real estate management and formalization of the contract. This includes both individuals and legal entities. 

Until now, the Urban Leases Law (LAU) only specified that the expenses were to be paid by the landlord. But, only when the landlord was a legal entity (company), without mentioning private landlords (individuals).

Previously, in the rental contract, the tenant had to pay a monthly fee as agency fees. Even though the landlord was the one who had hired the real estate company.

The new Housing Law seeks to:

• Avoid costly real estate expenses that hinder access to housing, especially for young people. 
• The real estate service benefits the owner, so now it will be him who will assume those expenses. As mentioned by the spokespersons EH Bildu and ERC.
• The formalization of the rental contract, which placed an additional burden on tenants. Tenants are already facing rising rental prices.

As an example. In a rent of 800 euros per month, the tenant used to have to pay a monthly fee plus VAT to the agency. In addition to this, he had to add a monthly deposit (according to the law, you can’t ask for more).

• This meant an initial outlay of at least 2,400 euros for the tenant. If the landlord decided to request up to two additional monthly payments as a guarantee, the cost could rise to 4,000 euros. All this if you follow the current legislation.

Keep these key factors of the new Housing Law handy. Especially the measures related to agency month: 

The spokespersons assure that this part of the regulation is applicable at the national level and must be complied with. After the approval of the new Housing Law, doubts arose about the overlapping of competences in the autonomous communities. But this would not be illegal if the law is complied with, unless it is repealed.

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Does the law open loopholes for cheating?

Real estate companies could continue to request the fee money from tenants. Tenants would be faced with two options: pay them to access housing or not pay them and not be able to access housing.

Within the framework of the new Housing Law, an explicit prohibition is established. This restricts the increase of rental rents through the addition of new expenses not previously agreed upon. 

As such, this measure seeks to safeguard tenants’ rights and ensure an environment of stability and transparency in lease negotiations. 

In this way, the new Housing Law aims to avoid abusive practices. Especially in relation to the real estate agency month and rental costs. Thus, it ensures that any modification in prices is subject to a prior agreement between the parties involved.

Under this scenario, the real estate law seeks to promote a fairer and more equitable environment in the rental housing market. So it is advisable that tenants do not engage in cheating practices. 

The new Housing Law has brought significant changes to the dynamics of leasing in Spain. It has generated doubts about the liability of real estate agents’ fees.

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It is essential to be informed about these modifications in order to make the right decisions as a landlord or tenant. If you want to receive professional advice and make sure you comply with the current regulations without worrying: contact our experts in real estate management.

With their extensive experience and knowledge, they will be happy to assist you in this process under the new Housing Law. Don’t let the new laws catch you off guard! Get the support you need for a safe and secure tenancy.