Spanish Government to offer new incentives to rent

The government is planning to introduce new measures to promote renting flats and houses.

Firstly the Public Agency for Renting Property (la Sociedad Pública de Alquiler – SPA) is to give tenants a special type of guarantee to offer landlords.

Secondly SPA is currently trying to get more properties onto the rental market by offering property owners with empty flats insurance against possible non payment of rent, damage to the property or legal costs if the owner needs to go to court to evict tenants. The cost of this insurance would be lower than if a landlord takes out their own private insurance.

Furthermore, this association is hoping to be able to provide thousands of properties, belonging to property investment groups such as banks, for rent. At present it is in negotiation with property investment groups regarding this issue.

For example SPA has reached an agreement with Santander Bank which is going to offer 8000 properties for rent. Sabadell will also add a further 2000 properties to this figure. SPA also hopes to reach a similar agreement with BBVA.