Those interested can request information and advice from the Colegio Oficial de Administradores de Fincas and the Colegio Oficial de Agentes de la Propiedad Inmobiliaria and consult all the details at www.lloguersegur.caib.es
The ‘Lloguer Segur’ programme, one of the initiatives of the Government’s shock plan to increase the supply of affordable housing in the Balearic Islands, is being launched this Monday with the aim of capturing empty or unused residential properties from small owners to offer them to residents at a reduced price of 30% below the market price.
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The ‘Lloguer Segur’ programme for attracting empty homes to offer them to residents at a reduced price starts this Monday
The Official Association of Real Estate Agents of the Balearic Islands (COAPI) and the Official Association of Property Administrators of the Balearic Islands (CAFBAL) will act as collaborating entities for the development and management of the programme, so those interested should request information and make their queries through both associations. The website www.lloguersegur.caib.es has also been set up with detailed information on the programme.
Using agreements, COAPI and CAFBAL will be in charge of mediating and marketing the properties that meet the conditions for joining the programme, as well as searching for potential tenants, and administering, managing and monitoring the rental contracts. They will draw up a report on the situation of the housing and the prior appraisal of the rental price to be paid by the Administration to the owners, within the maximum prices set by the Government. Each college will have to validate and ratify the proposals for joining the programme that its members have processed individually.
Landlords
Among the requirements for owners, it is established that they must not have the status of large landlord; only homes that have been empty for six months or more, or that no one has been registered in the home for a year; the homes must have been built three years or more ago and be in a good state of cleanliness and maintenance that allows immediate entry; and the owners will pay the property tax (IBI), vehicle entry fees, if applicable, and community fees.
The rental contract with the Administration will be for 7 years and different methods of payment are offered to the owners: monthly payment, advance payment for the current year or advance payment for the 7 years of the rental contract for these homes by the Administration (in the latter case, in a limited number subject to budget availability).
The Government guarantees, using a contract, the collection of the rent from the owners and the return of the property under the same conditions. On the other hand, owners who join the ‘Lloguer Segur’ programme will be eligible for significant tax deductions in their personal income tax returns to the State Tax Administration Agency (AEAT), through the 70% reduction established by Law 35/2006 on personal income tax (art. 23.2.b) 2.º), as the property is rented to a public administration.
Tenants
Tenants in the ‘Lloguer Segur’ programme will pay a price 30% lower than the assessed price. The Govern has set a maximum appraisal price of 1,500 euros in Mallorca and Menorca, and 2,100 euros in Ibiza and Formentera, taking into account the reality of each island so that the prices to be paid by tenants will be less than 1,050 euros in Mallorca and Menorca and 1,470 euros in Ibiza and Formentera.
As an example of the 30 % reduction in the rental price, in the case of a price to be paid by the Administration to the owners of 850 euros, the 30 % reduction brings the price to be paid by the tenants to 595 euros. In the case of a price of 1,000 euros to be received by the owners, the 30 % reduction puts the price to be paid by the tenants at 700 euros, and in the case of a price assessed at 1,200 euros, the reduction puts the price to be paid by the tenants at 840 euros.
Income limits are established for tenants in order to be eligible for these homes, as in the ‘IBAVI Mortgage Guarantee’ programme. Thus, people with a maximum annual income of 6.5 times the weighted IPREM (60,667 euros for one tenant and 68,250 euros for two tenants) may apply for the homes in the ‘Lloguer Segur’ programme.
Among the requirements to be part of the programme, tenants must be residents with five or more years of residence in the Balearic Islands; have no debts with the community; the homes must be their habitual and permanent home during the term of the contract; the home cannot be used for any other purpose, such as tourist rental; and they must pay the costs of individual services and supplies, small repairs for ordinary use and the waste tax.
Those interested, should contact the Colegio Oficial de Administradores de Fincas de les Illes Balears (CAFBAL) and the Colegio Oficial de Agentes de la Propiedad Inmobiliaria de les Illes Balears (COAPI), can visit the website www.lloguersegur.caib.es for detailed information on the programme.