Posted in: Coronavirus/Covid-19 Articles
Help for tenants is available from April 1, 2020 and for up to two months after the end of the State of Alarm.
What does this mean? Who is in a situation of economic vulnerability?
Help for tenants may be required by someone who has gone through a dismissal. These are the requirements for the help: which all must be fulfilled or met by the family unit in the month prior to the request:
a) Income for the family unit (adults and dependent children) must be less than 3 times the IPREM (the minimum wage) for 2020: Minimum wage is € 537.84 thus x 3 = € 1,613.52. The family’s total wage for the previous month cannot be more than 1,613.52€ in total.
However, the minimum wage will be increased by 0.1 times for each dependent child in the family unit (or 0.15 for each child in the case of a single parent family) or a person over 65 years of age.
b) The rent paid each month, plus basic expenses and supplies, must be greater than or equal to 35% of the net income received by all the members of the family unit.
c) Economic vulnerability will not be accepted when the tenant is the owner or holder of an usufruct of a house in Spain. Except in very exceptional cases.
Help for Tenants with economic vulnerability will have to be justified by the tenant, who must submit the following documents to the lessor (landlord):
a) Legal situation of unemployment, by means of a certificate issued by the corresponding authority.
b) Termination of activity of self-employed workers (autonomo), by means of a certificate issued by the State Agency for Tax Administration.
c) Number of people living in the habitual residence evidenced by the:
a. Family Book
b. Padron Certificate
d) Ownership of property: a nota simple from the Land Property Registry for all members of the family unit (Molina Solicitors can help with this).
e) A sworn statement (Responsible declaration) of the tenant (Molina Solicitors can help with the wording for this). This states that you do not have sufficient economic resources and need help basically.
If you are unable to provide some of the documents, you can substitute them by a sworn statement that includes justification of the reasons why you cannot provide them. (Molina Solicitors can help with the wording of this).
After the end of the state of alarm, the tenant will have a period of one month to provide the documents that they could not provide.
If you contact us at Molina Solicitors with your situation we can help with some of the above.
A tenant who does not meet the requirements of a person in a situation of economic vulnerability may also make a request to the landlord. They can request a temporary (and extraordinary) postponement of payment of the rent. They have to do this within one month from April 1st 2020. This can only be done as long there has been no agreement previously for a postponement of the total or partial payment of the rent.
The landlord has to advise to the tenant, within a maximum of 7 working days, the conditions of postponement. Or offer an agreement to pay in stages stating the amount they will accept. Or any other possible alternative as a solution.
If the landlord does not accept any agreement on deferring payment as help for the tenants. Or if the tenant is in the category of special situation of vulnerability, then the tenant may have access to the special new measures of temporary financial aid.
If you need assistance with a letter to the landlord to make the formal request please advise us and we will see if we can help.
If the landlord is a company, public entity, or person that has more than 10 properties for rent, then the tenant must, within one month of April 1, 2020, inform the landlord of his situation of economic vulnerability. The landlord must notify the tenant within 7 days of the option chosen by him as assistance. The measures are as follows:-
The tenant for whom this measure is not sufficient because of their economic situation) may have access to special measures of help. Such as not having to defer the payment of rent, and that immediately from the first monthly rent payment this help might be available.
Writing to Landlords – Please use this article (link it) in your email to a landlord to explain as many will not be aware. If we can help with a formal approach to them, we will do it as inexpensively as possible. Please note though we are not able to include checking your economic situation and paperwork to advise if you qualify within this fee.
The Government has approved a line of guarantees or small micro loans for people who are in the aforementioned situation of vulnerability.
With a repayment period of up to six years, in exceptional circumstances renewable for another four. These do not accrue any type of expenses and interests for the applicant.
The tenant must use any help provided in full to the payment of the rent of his property lease and may cover a maximum amount of six monthly payments. You (the tenant) apply to your own bank and the money is paid directly to the landlord.
In addition, for people for whom it is especially expensive for them or difficult to repay the small loan, the Government has approved direct aid of up to 900 euros per month and up to 100% of the rental income. Or, where appropriate, up to 100% of the principal and interest of the loan that has been applied for, for the payment of the rent of their usual home.
The relevant authorities of each Region will determine the exact amount of these grants. Within the limits established for these special measures.
To apply you need to go through the Generalitat Valenciana in this region. We have found an an email. Or to approach a local asesor or gestor as this is not something we assist with
These measures are established in the Royal Decree 11/2020, 31st or March.