We tell you the fundamental aspects about old rentals.
Let’s start with the basics. Nowadays old rental contracts are no longer signed. However, there are still many tenants who have this type of contract. Therefore, it is important that you take a look at the information that we will present to you throughout this article. In this way, you will be able to learn some keys about this type of income as well as its most important characteristics. Let’s go!
What is an old rent?
Old rental contracts are considered to be those signed between 1950 and 1985. The characteristic of these contracts is that they allowed lifelong tenants access to rental housing. This must be understood in a crisis context where it was very complicated to buy and many families opted for renting. Some of these contracts were even passed from father to son. However, in 1994 actions began to be taken so that this type of rental would gradually disappear as the real estate market modernized.
Rights of tenants
Now that we know what the main characteristics of old rentals are, we will see what the rights of their tenants are.
- In this sense, and without a doubt, the main right of a tenant of this type of rental is that his contract can be extended indefinite . Now, beyond this right there are the following:
- Tenants pay below the market rent. Or in other words, they have their rent frozen. Although old income can sometimes be adjusted according to the CPI, this increase does not usually represent a significant percentage.
- The tenant has the right to both purchase and preferential rental in case the owner decides to sell or rent the apartment again.< /span>
- With the 1994 reform it is no longer possible for the old income to pass from parents to children. Now, it can happen to the spouses in the event that there have been no prior surrogacy.
Do you have more questions? We will be happy to help you resolve any issue.