Pros and Cons Short Term / Long Term Rentals (New Law) – Flexible Property Market ..

LEGAL NEWS
Pros and cons of short and long term rentals under the new law
The recently approved Tenancy Act makes several important changes to earlier legislation.

These changes include the obligation to have the new energy performance certificate and a reduction in the legally mandatory rental periods. We will analyse the advantages and drawbacks of leasing a property for more than five years or less than one.

In this regard, it is important to remember that under the new law legally mandatory rental periods will be shorter. Up until now the legally mandatory rental period for long-term rents was five years, but it has now been reduced to three years. After these three years have expired, the contract may automatically be renewed, provided both parties are in agreement, and this tacit renewal has been reduced from three years to one year.

Tenants benefit from this change since they can vacate the property without being penalised. However, it may lead to insecure tenancies, as landlords can terminate the contract after the first three-year period has finished.

This new law therefore makes it easier for tenants to vacate the property, and also makes it easier for landlords to regain possession of their property if they need to.

Landlords also benefit from the new regulations because they will be able to regain possession of their property if they need it either for themselves or for an immediate family member, provided that the contract has been in force for at least one year, and they give the tenant two months´ notice.

One of the drawbacks for landlords is that their rental income is not as secure as it was as tenants can vacate the property without being penalised, provided they give two months´ notice.

The aim of this new law is to make the property market more flexible in order to stimulate supply and demand.
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