In 2023, the increase in rents in rental contracts was limited to a 2% update, which did not keep pace with the rising inflation and the regulations of the NRAU (New Urban Rental Regime).
A similar situation was expected for 2024 but the government ultimately reversed its decision to impose restrictions on rent updates, allowing them to once again align with the inflation rate.
Therefore, the planned rent increase for 2024 will be based on the inflation rate calculated by the INE (National Statistics Institute), which is set at 6.94%, according to a notice published on October 30, 2023.
As a result, landlords will have the option to update their rents up to the update coefficient of 1.0694, as shown below:
For example, a rent of € 1,000 can be adjusted or updated up to a maximum of € 1,069.40, as follows:
€ 1.000 x 1,0694 = € 1.069,40.
Rent updates require written communication, which must be sent to tenants with a minimum of 30 days' notice before the new rent payment due date.
Belzuz Abogados has a dedicated team of Real Estate Law specialists ready to assist you on this and other matters related to the recent developments in the real estate sector.
Commercial and Corporate Law department | Madrid (Spain)
Belzuz Abogados SLP
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