The Government will extend the mandatory extension of rental contracts and the moratorium on rents

He Minister council tomorrow, Tuesday, it will put the rent issue back on the table and will again extend, through the approval of a decree law, two measures that the Government launched at the beginning of the pandemic. On the one hand, the automatic extension of leases that expire during the pandemic and on the other, the moratorium on the payment of rents when the owner is a large holder. Both until the end of the current alarm state, next May 9.

These are two of the measures that the Executive approved shortly after the first state of alarm, already in April, to deal with the situation of people financially affected by the pandemic. Both have been extended during this time and this week one more extension will go ahead, as they have confirmed to THE WORLD Government sources.

The extraordinary extension in the usual residence lease contracts may be applied upon request of the tenant and for a maximum period of six months, during which the terms and conditions established for the current contract will continue to apply.

At first, the measure was contemplated until August 21 of last year, it was extended until September 30; most recently until January 31, 2021 and will now run until May 9, the date on which the current state of alarm is scheduled to end.

Thus, tenants who see their lease terminated in these months and find themselves in a vulnerable condition or who have difficulties actively looking for another home to rent, can request an extension of the current contract.

Debt moratorium

On the other hand, the Council of Ministers will also give the green light to the automatic application of the moratorium on rental debt in case the landlord is a large holder (that is, they have more than 10 urban properties) or companies and public entities, temporarily and extraordinarily postponing the payment of the rent, provided that said postponement or the total or partial cancellation of it had not already been achieved with love. Voluntary contract by agreement between both parties.

If this agreement is not reached, the landlord can choose to reduce 50% of the rental income, with a maximum in any case of four months, or, by a moratorium in the payment of the rent without being able to exceed, in any case, the four months.

Said rent will be deferred from the next monthly payment by dividing the installments for at least three years or from the end of the four-month term, and always within the term throughout which the term of the lease or any of its extensions. The landlord may not charge interest on the debt, in any case.