Tuesday, February 13, 2007

Rented student flats in Spain

‘Mini flats’ for students available from 2009

María Antonia Trujillo, Spain's Housing Minister, has announced that under the Government’s housing programme, up to 10,000 student ‘mini flats’ will be built on university campus’s all over Spain.

The Vice president, María Teresa Fernández de la Vega, recognised that 80% of rented housing was rented out to young people. It is estimated that there are approximately 1.2 million University students in Spain out of which between 20 and 30% live away from home, mostly in shared student flats or residences.

The government-subsidised student flats will measure between 30 and 45 square metres and consist of one or two bedrooms with a communal living area. They will cost between 75 to 200 euros per month depending on the city and type of flat and the government intends to invest 300 million euros in the construction of up to 10,000 flats under on land owned by universities.

According to the Spanish housing minister, the programme, which forms part of the Spanish Government Housing Programme, is designed to help the mobility of students and encourage more equality of opportunity.

The mini-flats will be available to rent for up to five years in rotation and will be managed by each university. Madrid's Carlos III University will be one of the first to have mini flats available to rent - at present it is awaiting approval to start constructing its first mini flats.

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Thursday, September 15, 2005

New state property rental agency ready for business in Spain

The Spanish Housing Minister, Maria Antonia Trujillo, yesterday announced that Spain's new public property rental agency is ready for business with 1,500 properties to rent which will be available for rental as from October.

1,200 properties have been registered with the agency by private owners, and the rest are flats and apartments in state-owned buildings.

Trujillo said that several Spanish ministries owned buildings which would be converted into flats and registered for private rental with the state agency. The minister said the agency would use this month to make any last-minute improvements and reforms to the properties on the new register, and to negotiate the rent with owners. She said the rent fixed by the agency would be just below market rates. In October a campaign will get underway to promote the properties and attract tenants.

When the government announced the creation of this new property rental agency in Spain a few months ago, its objective was to rent 1,000 properties during the first year, and 25,000 by the end of the legislature in an attempt to encourage and professionalise the property rental market in Spain.

Related:
The right of tenants to purchase rented property in Spain

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Wednesday, August 24, 2005

Rights of tenants to buy rented property in Spain

We received this email from a Euro-resident in Spain last week:

"We have been living in rented accommodation ever since we moved to Madrid 8 years ago, simply because prices here meant we couldn't possibly afford to buy a flat. We found a lovely top-floor flat, within walking distance of our work, shops, parks, cinemas, belonging to a women who earns a living from renting out several flats she owns in Madrid. She lives in the same building, and we have always had a good relationship with her and, during the past 8 years, we have made the attic into our home, changed the floor, put heating in, decorated, changed the bathroom..... All at our own initiative because we understood that this was going to be our home for a long time. Our 2 girls were both born here. Four years ago we purchased a small house near Cadiz which we use for holidays and rent out to family and friends. We decided to do this rather than buy somewhere in Madrid because we love our flat so much. Last week to our horror, the flat owner told us she had put our atico up for sale and we had 3 months to find somewhere else to live. The original contract we signed states that either party has to give notice of 3 months, but we assumed this was just a formality and she has always said that we could live in the flat for as long as we wanted. Is there anything we can do to stop her from selling the flat, or have we acquired any rights during the 8 years we have lived here?"

The answer to the first question is no, you cannot stop her from selling her property, unless a clause in the contract you signed 8 years ago specifically gives you the right to do so (this is very improbable). If however, as seems likely, the contract makes no reference to any possible ownership rights of the tenants, and simply mentions a 3-month eviction notice, then the owner has complied with her side of the deal.

The answer to the second question is yes, you have acquired a very important right as tenants: the right to buy your home in the event of the owner putting it up for sale.

In Spanish this right is called "el derecho de tanteo y retracto". The first part "tanteo" refers to the fact that a tenant has the right to buy the property he/she is renting and should be given preference over any other potential buyers. The second "retracto" refers to the right of a tenant who discovers that his or her rented home has been sold to a third party, to re-purchase the property from the third party at the same price.

According to Spanish law, all property owners must give their long-term tenants 30 days notice if they decide to put their rented property on the market. In theory this gives tenants time to either find a new home or negotiate a purchase price with the owner and buy the property themselves. If the property owner fails to give the 30-days notice, then tenants can resort to their second right and purchase the property from the new owners (which is one reason why it is very important, if you are a buyer, to find out the exact conditions of any property you decide to purchase in Spain).

In your circumstances we suggest you try to negotiate a deal with the owner of your property based on your right, as long-term tenants, to have preference over other potential buyers. The fact that you have a good relationship with her should work in your favour. And you will have to decide whether you love your home enough to sell the house you have bought in Cadiz and use the money you make on it as a down payment.

Good luck!

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