It was last Tuesday when the Council of Ministers approved the Youth Rental Bonus. Roughly, an aid of 250 euros per month for a period of two years. Of course, the lease must not exceed 600 euros per month for a complete home, although it can reach 900 if it is in a stressed area.
“What on the surface seems like a good measure, it is still a short-term measure with no real and detrimental effect on prices”, says José Ramón Zurdo, general director of the Rent Negotiating Agency (ANA). Because, in his opinion, “It will reach very few young people, due to the requirements for access to the aid that it proposes.” That, on the side of the tenants. And, on the side of the owners, “It could lead many, being aware of this financial aid, to raise their rental prices”.
But, beyond these considerations, the truth is that there may be a series of circumstances beyond the requirements of the Youth Voucher itself. And there they come into play from the period of time that the aid lasts, to the update of the rent that is included in most contracts.
As a general rule, the rental contracts that are signed usually have a duration of five years. And the Young Rent Bonus has a term of two years. Therefore, and if this period is not extended, the tenant is going to find that, from the third year, he is going to have to pay 250 euros more than what he had been doing usually. That is, and assuming a price of 600 euros, it would go from paying 350 euros to 600 euros.
Therefore, there will be tenants who have not changed their economic situation and who, therefore, cannot face this change in payments. “ANDthis It can be a trap for owners who accept people who receive this type of aid as tenants.by the mere fact of receiving them, but without establishing more controls. There’s a high risk that after two years the aid will end and the tenants will not be able to continue paying the rent”, Lefty points.
For this reason, from ANA they point out that when renting their homes to people who are entitled to the Youth Rental Bonus, they should not be short-sighted and look at the options of the tenants five years ahead. If not, there are possibilities of non-payment or, in the best of cases, that they end up leaving, they warn.
Another trap has to do with updating the rent. The vast majority of rental contracts signed in Spain contain a revision of the rent linked to the Consumer Price Index (CPI).
What would happen to a contract of 600 euros per month if the IPC rose? Should the young tenant face the rise or not? Would you lose the aid of 250 euros when you go up from 600 euros when applying the CPI? “If the CPI is up, you will have to pay for that update every year”, point out a source from the sector.
Therefore, and in the event that the CPI raised the price by 20 euros (for example), the tenant would have to pay those 20 euros more the following year. Of course, the 250 euros of aid would continue to be received.
Another case that could occur is that the contract did not contain the clause linking the price increase to the CPI. Then everything would stay the same. Or that the owner, even having the clause in the contract, decided not to apply it.
“If the Executive is so concerned about high rental prices, what it has to do is control the CPI more and stop intervening in market prices,” says José Ramón Zurdo.
It should be remembered that average inflation in 2021 was 3.1%. This is the highest in the last decade. A situation that is making it more expensives rentals.
Asome examples. The average rent in Spain is 674 euros, according to the Housing and Land Observatory of the Ministry of Transport, Mobility and Urban Agenda. In December, the CPI stood at 6.5%. A rent that had to update the rent in that month, would increase by 43 euros. That is, I would pay 717.81 euros.
What would happen in Madrid and Barcelona? The average rents in both cities are 819 and 769 euros, respectively. Therefore, the tenant should pay 53 euros more in Madrid (up to 872 euros), and 50 euros more in Barcelona (up to 819 euros).
One more obstacle for young people between 18 and 35 years old who want to find a rental in one of these two cities. According to Fotocasa, only 1.4% of the apartments in Madrid are below of the 600 euros of rent set by the Youth Rental Voucher. In the case of Barcelona, this percentage is still lower: 0.8%.