On 2nd April the Royal Decree 1/2020 of the 31st March comes into force, published 1st
April in the BOE. It contains urgent measures of a social and economic nature in order to deal with problems resulting from Covid-19.
In articles 3 to 12 various measures are established for being granted a delay in payment of rent for the principal residence when one is in a situation of economic vulnerability.
What is a delay in this context?
The delay means not paying the rent until a later date.
Who can apply for this delay?
People who are in a situation of economic uncertainty. According to article 5 of the Royal Decree, you are in a situation of vulnerability:
-If you are unemployed or you are in an ERTE or if your work-day has been reduced as you are providing care.
-If the income of your family unit in normal circumstances, i.e. in the month previous to the Covid-19 outbreak, did not exceed 1,613.56€ per month. (If you have children in your responsibility or persons of more than 65 years of age, you can increase this quantity by 57,74€ for each one.)
-If the amount you pay for your rent and for basic services is equal to or higher than 35% of your net income. (Basic supplies are understood as electricity, gas, heating-oil, running water, television and internet, and contributions to your owners’ association.
Please note you are not considered as being in a situation of vulnerability when one of the persons in the family unit has a house or a share in the ownership of a house in Spain, unless those who are the owners of the house can show they cannot use it for reason of separation, divorce or some other cause beyond their control.
How do I apply for the delay?
First you should ask the owner of the property whether (s)he is a large-scale landlord (with more than 10 properties) or not. Depending on the reply, there are different options as follows:
- a) If the owner is a large-scale landlord (owning more than 10 properties), Article 4 applies:
First, you will have to get in contact with the owner by talking to him/her or in writing, in order to request a temporary and exceptional delay in payment of the rent, or a temporary or partial cancellation, informing him/her – and if possible showing him/her that you are in one of the vulnerable categories.
The owner then has seven days to reply. If an agreement is not reached by the end of the seven days, the owner must choose one of the following options:
a.1) A reduction in the rent of 50% for the period of the state of emergency (el estado de alarma) and in the months that follow in certain cases – with a maximum anyway of 4 months,
a.2) A delay or postponement of the payment of rent, which will be applied automatically, and which will last for the duration of the state of emergency, and for some of the following months in certain cases, to be extended one month at a time, with a maximum of 4 months.
The repayment of the rent due will be delayed, with amounts being paid over three years or more.
In the event of not being able to make these payments, there is the option of “the Programme of Temporary Financial Assistance” referred to in Article 9 of this Royal Decree. (To obtain this you need to meet certain requirements.
- b) If the owner is not a large-scale landlord, that is if he/she is the owner of 10 flats or fewer than 10, Article 8 applies:
First you should speak to or write to the owner and ask for a temporary and exceptional delay in payment of the rent due, or a or a temporary or partial cancellation, informing him/her and if possible showing that you are in the category of those who are economically vulnerable.
The owner has seven days to reply; if you do not reach an agreement within seven days, the owner has the right to refuse.
In these circumstances, if you do not have money to pay the rent because you are in a position of economic vulnerability, you can request from your bank “the Programme of Temporary Financial assistance” referred to in Article 9 of the Royal Decree.
What is the Programme of Temporary Financial assistance in Article 9 of the Royal Decree – Programa de Ayudas transitorias a la financiacion?
The Royal Decree allows for provision of a financial guarantee (un aval) so that banks can offer loans to individuals or to families whose situation is financially weak. This money must be returned within 6 years at most, without the application or interest or other costs.
This help is only for the purpose of paying rent – for a maximum of six months. And it is only available to those whose situation is financially weak.
You can request up to 900€ a month.
How do I apply for money under this scheme for short-term help?
You should contact you bank and make your request through the bank.
What documents could they request?
-Proof that you are unemployed or suffering financial losses. For those who are self-employed, a certificate issued by Hacienda is needed.
-The rental contract.
-Libro de familia or proof of cohabitation if relevant
-If you don’t have these documents or cannot find them: A written statement from you, which give the reasons, for your inability to pay the rent. After the end of the: Estado de alarma, you will have a month to submit the documents that are missing.
If you are in this situation, APPLY NOW! Get in contact with us we can help you!! Info@ bennetrey.com / 699719306