The Government opens the safe rent program to large owners and tourist apartments

PalmaThe Government has expanded the Safe Rent program after the initiative's

failure: only 82 homes have joined it after a year and a half, when at least 2,000 were expected. The Minister of Housing, José Luis Mateo, explained that multiproperty owners, homes pending renovation, and flats from tourist rentals will also be able to join the program, in addition to properties affected by illegal occupations or a non-payment eviction process. In these cases, the general requirement that the homes have been vacant for at least six months will be waived.

The Executive approved the expansion this Friday. But on this occasion, Mateo avoided giving a forecast of how many new apartments could be added. The program will be open to both natural and legal persons and will guarantee owners the payment of rent, the management of contracts, and the return of the housing in good condition. The main difference compared to how it worked until now is that the homes will no longer have to be ready to be occupied immediately to be able to join. In the case of apartments that need renovation, the Balearic Housing Institute (Ibavi) may advance up to 50,000 euros to owners to finance the necessary adaptation works before putting the apartments on the residential market. Another option is also introduced to incorporate empty homes resulting from renovation actions. In this case, through specific aid to finance renovation works on the homes. In this case, the granting of aid will be conditioned by adherence to the program.

The Government pays 30% of the rent

The minister recalled that in the regional program, the Government pays a rental price to the owner for the adhesion of their home, according to the appraisal value and within the maximum prices set (around 1,500 euros in Mallorca and Menorca and 2,100 in Ibiza and Formentera) in this program, and offers rentals at a price reduced by 30% lower than the appraisal price. Among the general requirements, it is maintained that only empty homes will be able to join the program, without any person registered for a year. In the 82 homes that have been achieved so far (74 in Mallorca, 4 in Menorca and 4 in Ibiza), the average rental price has been 965 euros per month, with an approximate surface area of 100 square meters. The income obtained by owners stands at a monthly rent of 1,378 euros, as the Government contributes 30% of the amount. For their part, the beneficiaries of the program must prove they have five or more years of residence in the Islands and that the domicile will be their usual and permanent residence.