The Government has put several real estate agencies under the microscope for charging illegal commissions on housing rentals. The Ministry of Social Rights, Consumption and Agenda 2030 has launched an investigation after detecting a series of abusive practices against tenants, such as the charging of commissions for the management of leases, the imposition of temporary contracts without legal justification and the inclusion of abusive clauses .
The General Directorate of Consumer Affairs, the body that formally promoted the investigation, received several complaints from the real estate sector, and has detected these practices in companies that operate throughout the Spanish territory, although it does not detail the names of the agencies or the number of they are being investigated. Sources close to the process indicate that some of the infractions observed could be classified as serious, which would entail penalties of 100,000 euros, and even very serious, which would entail fines of one million euros.
One of the main reasons for the complaint is that some agencies are illegally transferring the costs of management and formalization of the contract to the tenants, a practice that goes against the Right to Housing Law, which expressly prohibits this type of charges. Last February, the General Directorate of Consumer Affairs had already notified different real estate agencies that they cannot charge a commission for their services to tenants. The agency had received information about some companies that charged tenants a commission equivalent to one month’s rent for the home plus 21% VAT.
On social networks, other types of abuses by some real estate agencies have even gone viral in recent months that They charge for the mere fact of visiting an apartment for rentsomething that many decide to pay for high demand and little existing rental supply.
In addition, Consumption has detected the improper use of temporary rental contracts without due legal justification and that contravenes the Urban Leases Law (LAU). This regulation protects tenants by guaranteeing long-term contracts, except in clearly justified circumstances.
From the Ministry of Social Rights, Consumption and Agenda 2030 they remember that housing is a fundamental right, and that the inclusion of abusive clauses or any practice that violates the rights of tenants violates both the LAU and the General Law for the Defense of Consumers and Users. These laws provide for significant penalties for the unjustified imposition of conditions on unsolicited services, unfair business practices, and the introduction of unfair terms in contracts.
In that sense, the first two infractions could be classified as serious and be punished with fines of up to 100,000 euros, and these amounts could be exceeded until reaching between four and six times the illicit benefit obtained. The third violation could be classified as very serious and be punished with fines of up to one million euros, and this figure can also be exceeded until reaching between six and eight times the profit obtained. A common practice that would amount to this type of abuse is to ask the future tenant to pay several months’ rent in advance, when by law only one month’s payment in advance can be required. In the vast majority of cases, the tenant has no choice and pays or is left without an apartment.
Consumption reiterates its commitment to the protection of tenants’ rights and fair access to housing. Furthermore, he explained that information programs have already been carried out with real estate agencies to prevent this type of abuse, addressing issues such as the collection of disproportionate deposits, the imposition of additional guarantees, or the aforementioned requirement for monthly payments in advance. They have also been informed about the regulatory changes that prohibit the charging of commissions to those interested in renting a home, so they should be aware that these practices are prohibited.
The problem of access to housing, a situation that immigrants and young people especially suffer, led to a massive demonstration in Madrid on October 13in which the tenants union relaunched the proposal for a rent strike. Despite the difficulty of carrying out an action of this type that could lead to the eviction of thousands of people, the union tripled the usual number of attendees in its first post-demonstration assembly.
Tourist apartments that operate without a license
From the ministry led by Pablo Bustinduy they assure that the protection of the right of access to housing is a priority line and that within the framework of their powers they will do everything possible to guarantee this right and put an end to the abusive practices suffered by tenants. Along these lines, the same sources highlight the investigation also opened by the ministry against the advertising of tourist apartments that operate without a license.
This year The ministry has already started an investigation with the aim that tourist housing ad platforms (such as Airbnb, although the company was not expressly mentioned) send information about the offer they market in some cities in which, according to the data offered even in official channels, more apartments are being advertised than those that have a license.
To address this situation, last week the Executive presented a royal decree to the Council of Ministers that seeks to streamline regulation and combat fraud in tourist rentals. This decree will regulate two fundamental aspects: the justification of temporality in short-term rental contracts, and the creation of a single registry for short-term tourist rental homes.
This registry, called Digital Single Window for Leases, will be mandatory for all vacation rental homes in Spain. Each home that wishes to advertise on digital platforms must be registered in this registry and obtain an identification number. Without this number, the home will not be able to be advertised on websites or applications, which will limit the proliferation of illegal advertisements.
The College of Registrars will play a key role in this process, since they will be in charge of verifying that the homes comply with the requirements established by regional and municipal regulations. In addition, they will check if the properties have the necessary license to be offered to tourists. With this system, the Government seeks to stop illegal rentals and also support the autonomous communities and city councils in the supervision and control of this activity, since local administrations are the ones who have these powers.
The Ministry’s objective is for this new system to come into operation throughout 2025, although a prior testing period is contemplated to guarantee correct implementation and legal security. This initiative aims to put an end to the lack of transparency and lack of control in the tourist rental market, offering a clearer regulatory framework that protects both tenants and owners, and guarantees compliance with current laws.
