how to include it in the contract – idealista / news

September is the month college students finalize their search for a shared apartment rental. But the covid-19 pandemic is generating great uncertainty as to whether the classes will be face-to-face or will be taught online. This will condition the fulfillment of the rental contracts, so it is convenient to analyze the inclusion of a covid clause, that is, a provision that provides for how to adapt the contract in the event of a new confinement.

The lockdown last spring has had a major impact on student rent. The closure of the classrooms led to the flight of the university students to their places of origin, which caused an early withdrawal of many lease contracts. This generated defaults, defaults and all kinds of conflicts, as indicated Salvador Salcedo, partner of the firm Legal Attic.

Given the uncertainty of whether the classes can be taught in person or digitally, the leasing contracts must be prepared for this situation in the new course. Therefore, a solution is to include a forecast of the effects of covid-19 in the rental contract. “The landlord, at the request or not of the possible tenant, will have to assess the particular circumstances (type of contract, solvency, possible alternative tenants, experience from the previous year, etc.), and decide whether to incorporate such provision and under what terms. If you decide to do so, it will be crucial that the wording is accurate, specifies the measures to be taken and in which cases, and does not create problems of interpretation. Reason why it is advisable to write it up by a lawyer ”, adds Salcedo.

It is a clause in the rental contract that specifies the conditions in the event of a re-outbreak or a future new pandemic. And its object is to try to reconcile conflicting interests. Since students want to be allowed to leave the flat before the end of the contract, if face-to-face teaching is not possible. Not surprisingly, if digital teaching was implemented, they could return to their homes, saving their parents the payment of rent. And the landlords intend to ensure as much as possible the rental during the entire course. Well, if students leave early they will lose a good part of their income, as it is very difficult to rent the apartment again until the next year.

The lawyer considers that the most reasonable thing is to distribute equitably the damages that the covid-19 brings with it. A possible solution may be to agree on a rent reduction during the period that a possible new confinement may be prolonged, in order for the students to remain in the rental apartment to continue teaching online. Thus, the landlord guarantees a minimum income, as the reduction is conditioned to the commitment to stay in the apartment until the end of the course, being able to claim the students in case of non-compliance.

Taxation of the student rental contract

In personal income tax, the landlord must pay taxes on the rental income received, which in principle will be classified as returns on real estate capital. However, if a housing or room rental contract has been formalized, the reduction of 60% of the net yield may be applied, if the purpose of the contract is to satisfy the tenant’s housing need on a permanent basis.

Said reduction may not be applied in the event that the rental is classified as for use other than housing (seasonal rental).

Rental income will be taxed on economic activities, if the owner has a person with a full-time employment contract to manage the activity.

Student rental will be exempt from VAT regardless of the type of contract that is formalized. Unless the rental includes other services such as cleaning, laundry, sheets, towels, etc.

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