What assistance is available to the owner of a leased property?

Royal Decree Law 20/2022, dated December 27, 2022, which entered into force on December 28, 2022, amends the regulations governing aid to the landlord when the eviction is temporarily suspended as a result of the existence of a situation of vulnerability of the tenant.

In order to obtain the compensation, a further three months must elapse since the social services have issued the mandatory report certifying that the tenant is in a situation of vulnerability without the tenant having been able to obtain another dwelling.

Otherwise, in the event that within three months of the issuance of the aforementioned report another property is obtained from the tenant, the owner will not be entitled to obtain the assistance.

The amount of the aid will amount to the average rental value in the geographical area where the dwelling is located, without it being able to be higher than the agreed rent, and the amount of the compensation may be increased, at the request of the lessor, for the supply costs that he has been obliged to pay despite the fact that their payment corresponds to the tenant, by virtue of what has been agreed in the corresponding contract.

The period for which compensation is paid runs from the date on which the eviction is suspended until the date on which the suspension is lifted and the judicial eviction proceedings are resumed, and in no case may the maximum suspension period established (i.e., June 30, 2023) be exceeded.

The landlord may request the assistance from the moment the Court decides that the eviction should be resumed. However, in the event that the court does not rule on the matter, the owner may apply for assistance from July 1, 2023 until July 31, 2023.

The request must be addressed to the competent housing authority of each Autonomous Community, detailing the reason for the right to compensation and the amount duly justified.

Once the application has been submitted, the competent Administration will have a period of three months to decide on its concession.

In the event that the Administration does not resolve within the aforementioned period, there will be a positive administrative silence that would imply the granting of the financial aid in question.

Therefore, if you are an owner/landlord and you meet the above-mentioned requirements, we can help you to carry out the necessary procedures to obtain the financial compensation and minimize as much as possible the damages that the suspension will cause you.

Written by Cynthia Zárate