Which expenses can actually be passed on to the tenant and which cannot? SEAG experts clarify it
At a time when access to housing has become one of the main social challenges in Spain, the rental market is under increasing pressure. The lack of supply, rising prices and economic uncertainty have made it difficult for many families to find an apartment, while owners demand greater security.
In this context, the recent proposal for a million-dollar fine against a company in the sector for alleged abusive practices towards tenants has once again put the focus on the obligations of each party and within the legal limits established by the Urban Leasing Law (LAU). From SEAG they clarify the eternal debate.
What expenses can be passed on to the tenant?
In accordance with the Urban Leasing Law (LAU) and consumer protection regulations, Intermediation fees, insurance linked to the contract or management services cannot be passed on. to the tenant, unless they are services expressly requested or that provide a direct benefit. Otherwise, these costs correspond to the owner or the intermediary company.
In practice, one of the most frequent doubts focuses on Who must pay the insurance for non-payment of rent. The current LAU allows the landlord to request additional guarantees – such as bank guarantees or insurance – but does not specify who must pay them. However, based on the experience of SEAG and various legal studies, those clauses that oblige the tenant to pay this type of insurance are considered null and void, since they exclusively benefit the landlord and violate the principle of contractual balance.
In fact, A Madrid court has already declared a clause of this type null and void.considering the obligation imposed on the tenant to pay for insurance that only protected the owner to be abusive.
“The rental market needs transparency and balance. Owners must know what they are contracting and tenants must know what rights they have. At SEAG we work so that both parties are protected, without transferring costs to the tenant that do not correspond to them,” explains explains Pedro Bretón, CEO of SEAG.
However, SEAG has always recommended that these guarantees be paid by the landlord, even when the regulations allowed them to be required from the tenant. “If the tenant goes through a situation that prevents them from paying the rent, it will not be feasible for them to also assume the cost of the insurance. or its renewals. In that case, the owner would be left uncovered, which is precisely what we want to avoid with our guarantee model,” the company explains.
