I own a number of properties around the world… but boy, am I ever thankful I don’t have a rental property in Spain in my portfolio right now.
Early last week, the Spanish government laid out plans for a wave of new housing measures that would significantly expand the government’s involvement in the landlord-tenant relationship.
These include new restrictions on rent increases, additional mandatory extensions of existing leases, and much stronger protections against eviction for certain “vulnerable” occupants.
Absent a new agreement with the tenant, the increase can’t exceed 2%. This is standard in many parts of the world, so this part may not shock you (likely because you have become accustomed to this “norm”).
Now, the rent-control element of the possible new housing measures is far from the worst of it…
Under Spain's socialist leader, Pedro Sánchez, the government is attempting to pass a bill that will suspend evictions involving certain “vulnerable” tenants through 2030.
The exact rules will differ depending on the owner and circumstances, but you can bet a country run by a socialist is going to side against the “big bad landlord” nine times out of ten.
Just calling it as I see it…
As many of you know, I’m a libertarian, and two of the foundational principles I live by are incredibly simple for anyone to follow regardless of their religious creed or politics: