If you’re thinking about renting out your apartment or a room in Catalonia, it’s important to understand the changes to the law that came into force on 26 April 2024. The new regulations mainly affect short-term rentals (less than 11 months) and room rentals.
Why has the rental law changed?
The Catalan Government has introduced measures to limit rental prices and prevent landlords from bypassing the rules for standard residential leases by using short-term contracts or renting properties by the room. These types of rentals must now also comply with stricter regulations.
What should you know before renting out your property?
1. You must clearly state the purpose of the rental
If the contract is for a short-term stay (for example, for work or study), this must be clearly stated in writing. If the purpose is not properly specified, the agreement may be treated as a standard residential tenancy and will be subject to the corresponding legal requirements.
2. Rental prices are capped
The rental price (whether for the whole property or individual rooms) must comply with the limits established by law, especially if the property is located in a designated stressed housing market area (such as Barcelona and other major cities). A reference price index is available to help determine the maximum rent that can be charged.
3. You cannot charge more by renting rooms separately
If you rent the property room by room, the combined rent for all rooms cannot exceed the maximum amount that could legally be charged for renting the entire property.
4. Holiday rentals are not covered by these rules
If the property is rented for tourism, holidays or specific temporary events (such as trade fairs, conferences or sporting events), these regulations do not apply. However, the purpose of the rental must be properly justified.
What information must be included in the tenancy agreement?
- The rent previously charged for the property during the last five years.
- The reference rental price index.
- Whether you are considered a large-scale property owner (owning five or more residential properties).
- The property’s Energy Performance Certificate (EPC) and Certificate of Occupancy.
What information must be included in the property listing?
The advertisement must display:
- The reference rental price.
- The rent charged under the previous tenancy agreement.
- Whether you are a large-scale property owner.
If your property was advertised before the new law came into force, the listing must be updated within five days.
What penalties could apply?
Failure to comply with the regulations may result in financial penalties:
- Up to €900,000 for significantly overcharging rent or providing false information.
- Fines ranging from €9,000 to €90,000 for failing to state the purpose of the tenancy or charging prohibited agency or management fees.
- Fines of up to €9,000 for errors or omissions in property advertisements.
Other important points
- The Catalan Government reserves the right of first refusal when a large-scale property owner decides to sell a residential property.
- This legislation complements previous regulations governing short-term rentals for work or study purposes.
In summary
If you’re planning to rent out your property, make sure your tenancy agreement clearly states its purpose, respect the legal rent limits, and ensure your property listings comply with the new rules. Understanding the legislation from the outset will help you avoid unnecessary issues.
La Caseta Blanca makes it easy
At La Caseta Blanca, we offer a personalised rental management service so you can rent out your property or a room with complete peace of mind. We’ll guide you through every step of the process, ensuring full compliance with current regulations while helping you achieve the best possible return on your property.
Get in touch with us and we’ll take care of everything!