How the Housing Law affects evictions for non-payment of rent

Do you remember the recent article in which we addressed the key aspects included in the Housing Law?

After its publication last May 2023, there are some issues that are generating some concern among owners of rental housing. One of them is the difficulty in evictions processes due to non-payment.

How does the Housing Law affect evictions?

The Housing Law brings with it several modifications in the eviction processes. Some of them are especially relevant when tenants do not comply with rent payments and are in a precarious economic situation.

• Obligation to inform the competent authorities of the eviction date in order to assess the possible vulnerability of the occupants.

• Verification of the precarious economic situation of the occupant.

• Need for the plaintiff to specify whether the property is the habitual residence of the occupant and whether he/she is a large tenant; presenting the certification at the Land Registry.

• Extension of the deadlines for suspension of evictions to 2 months for individuals and 4 months for legal entities.

• Court decision system for suspending eviction proceedings, evaluating each case in a weighted and proportionate manner.

• Expansion of coverage in situations of vulnerability and definition of vulnerable persons with more flexible criteria regarding the required income.

The importance of having insurance against non-payment of rent

Faced with this situation, more and more landlords are deciding to take out rent default insurance in the event of the risk of default.

A solution that protects in the event that the tenant does not pay the monthly rent due. The insurance company is responsible for reimbursing both the rents and the payment of the supplies that are overdue or that the tenant has not paid.

Other benefits of having this type of coverage?

• Choice of tenant.
• Management of the judicial process of eviction, assuming its costs.
• Protection against vandalism.
• Access to legal assistance.
• Guarantee of the maintenance of the property.

Our insurance service for the real estate sector

In KM2 Servicios Inmobiliarios – real estate agency in Barcelona and Madrid – we have been specializing in advising, recommending and contracting insurance since 1979.

We process the scope of coverages and we always attend to them for the benefit of our clients.

Contact one of our agents now so that they can give you personalized advice according to your needs, we want to help you!