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The increase in the number of tenants who intentionally stop paying rent has become a headache for landlords. A method that is already the most common formula to occupy a property illegally through a lease.
Santiago Thomás de Carranza, managing partner of the firm that bears his surname, analyzes the consequences and distortions that legal uncertainty is producing in the housing rental market.
For the lawyer, an expert in Real Estate Law, “owners are going through hell to be able to recover their possession when the tenant breaches the contract: administrative and judicial procedures, costs for hiring lawyers, as well as having to wait between a year or a year and a half to be able to recover their home“. Without forgetting that “more than 90% of the rental housing stock in Spain belongs to middle class people who have invested their savings in a second home to supplement their pension or retirement“.
“This situation causes, according to Thomás de Carranza. two situations. On the one hand, many landlords prefer not to rent, reducing the supply and, on the other hand, very high rental requirements are being imposed, which only the most economically solvent people have access to. In the end, what is happening is that those who most need access to affordable housing are excluded from the rental market and this is largely due to the lack of legal certainty. They are already excluded from the purchase market because of the prices, but now they are being excluded from the rental market”.
“The greater the risk and uncertainty, the more the landlord prefers not to put the property up for rent, decreasing the available supply.”
Santiago Thomás de Carranza has also referred to the lack of subsidized housing, recalling that “.in Spain, it only represents 2.5%, while in Europe the average is 9%. As for the rate of effort for renting, in our country, it is above 40% for 40% of families, while in Europe, the average is 21%, something that has a lot to do with taxes and withholdings, which reduce people’s saving capacity. “
Access to the complete interview: https://www.youtube.com/watch?v=gMDGe3dsikU
