One of the novelties included in the New Housing Law is the possibility of declaring stressed areas and, with it, the limitation of rental prices and the application of a reference index for new contracts.
Despite this, the regulations also include the possibility that owners can increase rental income in stressed areas by up to 10%. They can do so in new contracts. That's not available for large holders.
Reforms that allow rent increases in stressed areas
To benefit from this exception to the rental limits in stressed areas, not just any reform will do. The law also imposes some requirements. Specifically, there are three circumstances in which a landlord can increase the rental price:
Housing rehabilitation
In this sense, it will be possible to increase the rental income if the home got renovation works in the last two years in two circumstances:
• Reforms included in the State Rental Promotion Plan.
• That the purpose of these reforms is the treatment and consolidation of facades, roofs or structures.
The type of improvement work is broad. It ranges from facades or roof rehabilitation to electrical installations or downspout systems replacements.
In any case, there is a fundamental requirement: the improvements cannot have a budget of less than 25% of the price of the home if it has been acquired in the two years before signing the contract or the same percentage of the purchase price if was acquired before that time.
Energy efficiency
It is also possible to increase the rent in stressed areas when we've carried out a project to improve the property's energy efficiency within two years before signing the rental contract.
For instance, we could install self-consumption systems using solar panels or aerothermal energy, improving the thermal insulation or changing windows for more efficient ones.
In this case, we should achieve a 30% saving in non-renewable energy of at least. It will be necessary to provide an energy efficiency certificate before the renovation and another after it. What there is not is a minimum investment threshold for improvements.
Accessibility
Another way to increase the rental price in stressed areas is carrying out reforms to improve accessibility within the two years before signing the contract.
The regulations are less precise in this case than in previous ones. However, we assume there will have to be works of a certain magnitude, such as elevator installation, platforms or stairlifts or the adaptation of sanitary areas.
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