COVID CLAUSE AT THE TIME OF RENTING A HOUSE.
Society is constantly changing and even more so since the arrival of the Covid-19 pandemic.
At RE / MAX ISLA BLANCA in Ibiza and Santa Eulària we have appreciated that the real estate sector has been forced to reinvent itself and one of the actions that has arisen due to this new situation so that the relations between owners and tenants are not harmed , has been the implementation in many of the rental contracts of a clause, given the possibility of another state of alarm or confinement. This is the Covid clause, an annex in the contracts that both the owner and the tenant agree on the conditions of the lease in the event of a state of alarm.
And it is that in RE / MAX ISLA BLANCA in Ibiza and Santa Eulària we know that in the previous state of alarm, the rental contracts brought both the owners and the tenants upside down, for not knowing what to do with the contract. Some for not being able to pay by having to fail to comply by leaving the house to return to their cities of origin and others for not being able to receive the amount agreed upon at the signing of the contract prior to confinement.
With this annex, what is intended is that the relationship between both parties is more cordial and is that one of the benefits of this clause is that the tenant can leave the house without any penalty in exchange for the owner being able to have of the house, to rent it again.
To clarify this situation a little more, from RE / MAX ISLA BLANCA in Ibiza and Santa Eulària we tell you in which cases this clause can be applied:
· The clearest case is that when a new State of Alarm is declared, the tenant may terminate the contract without any penalty. For example, this can happen in student flats, since with the alarm state, if they do not go to the university, it does not make sense to keep the flat.
Another case that can occur after the new state of alarm is that the rental price is lowered to an amount agreed by both parties, such as 40% or even payment can be suspended for the duration of the state of alarm. This is more focused on rentals of premises dedicated to commerce or hospitality.
And it is that in RE / MAX ISLA BLANCA in Ibiza and Santa Eulària we have seen that the real estate sector has faced various scenarios, from people who wanted to leave, others who wanted to extend the contract and those who after being affected by an ERTE or dismissal they couldn’t afford the rent.
Therefore, from RE / MAX ISLA BLANCA in Ibiza and Santa Eulària we consider that the Covid clause is interesting, since it makes the tenant have more security when deciding to rent, which will encourage people to take risks knowing that they are protected before what may come.