The Public Society of Renting (SPA), a public agency funded and financed by the previous Spanish government, has been definitively closed by the new government due to the economic losses that are involved. It was created with a budget of €20 million and it closes with a deficit of €37 million.
The objective of the SPA was to mediate between supply and demand of rentals in Spain, but with the distinctive characteristic of being a public agency that mediates this in a way that gives the most security to all parts (tenant and owner).
In the end, the SPA was a very bad and shameless solution in the absence of a legal framework that would invigorate the rental market in Spain.
To be objective, in its moment of greatest activity the SPA didn’t mediate more than 9,000 rental transactions, which is not representative of what the rental market should be.
Its closing has been criticized by some and applauded by others.
The current rental market has all of the tools that it needs to be a success…except judicial agility to protect owners agains bad tenants. Non-payments in times of crisis continue being a problem and an insecurity for direct owners. Evictions of defaulting tenants should be quicker and more flexible, seeing that sometimes it takes up to 6 months to be able to evict non-paying tenants. Losses for an owner can total thousands of euros in the worst cases.
The greatest conflicts are generated in long-term rentals more than in holiday rentals.