Government Takes Action Against Real Estate Agency for Tenant Abuse
The Ministry of Consumption has initiated a sanctioning procedure against a prominent real estate agency due to potential abusive practices against tenants in rental management. This action stems from an investigation that commenced last October, led by Minister Pablo Bustinduy. The inquiry remains ongoing, with further scrutiny on other real estate firms suspected of similar transgressions.
According to the Tenants Union, the real estate agency in question is Alquiler Seguro, which has been reported to the General Directorate of Consumption for engaging in practices that significantly contravene legal standards. These alleged abuses include excessive fees, the imposition of unfair clauses in rental contracts, and the failure to comply with tenants' rights regarding withdrawal.
In addition to the complaints from the Tenants Union, FACUA and OCU—two consumer advocacy organizations—have also lodged grievances, indicating violations such as charging commissions for rental management, mandating unnecessary insurance purchases, and requiring tenants to acquire unsolicited services. The Ministry has underscored that the Law for the Right to Housing clearly prohibits passing on the costs associated with real estate management and contract formalization to renters.
The consequences for these abusive practices could be severe, with potential fines reaching up to €100,000 for serious offenses and up to €1 million for particularly egregious actions. Should the agency’s profits be significant, these amounts could be further exceeded.
This sanctioning procedure is part of broader efforts by the Ministry, which also includes actions against a platform listed for short-term rental properties due to a multitude of illegal advertisements. In February, other sanctioning files were opened against tourist housing companies across various Autonomous Communities after it was discovered that they provided misleading information or presented otherwise truthful information in a deceptive manner.
Minister Bustinduy has reiterated that housing is a fundamental right and necessity enforced by law. All measures being taken are aimed at protecting consumer rights and ensuring fair access to housing.
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