The Spanish government is investigating Alquiler Seguro for abusive practices against tenants.
Consum will assess whether it has required payment of a fee for rental management and imposed the purchase of insurance and other services.
BarcelonaThe Ministry of Social Rights, Consumption, and the 2030 Agenda has initiated disciplinary proceedings against Lloguer Segur, a company that provides services to landlords, for possible "abusive practices" against tenants in the management of their rentals. The ministry, led by Pablo Bustinduy (Sumar), is also investigating other real estate agencies for illegally charging tenants fees and forcing them to hire unsolicited services.
The opening of disciplinary proceedings involves gathering evidence and giving the offender the opportunity to present allegations, which will be taken into account in imposing sanctions, which may include fines and the obligation to cease irregular conduct. The disciplinary procedure opened by the ministry is part of an investigation launched in October, following several complaints from the Madrid Rental Companies Union and the consumer associations Facua and OCU.
In their documents, these entities reported violations such as charging a fee for rental management, requiring the purchase of insurance, or requiring the tenant to hire services not requested by the tenant. These alleged practices, which the ministry is now investigating, are prohibited by the state housing law approved in May 2023, the same law that regulates the price cap. If these practices are proven, the consumer protection law allows them to be classified as serious or very serious. In the former case, they could carry fines of up to 100,000 euros, with the possibility of exceeding this amount by up to four or even six times the illicit profit obtained. If declared very serious, these sanctions could entail fines of up to one million euros, which could also be exceeded, reaching between six and eight times the illicit profit obtained.
Facua filed a complaint against Alquiler Seguro in November 2023 because it forced tenants to pay them the equivalent of one month's rent plus 21% VAT. Since the housing law of May of that year, it has also filed complaints against several dozen real estate agencies with all consumer administrators, but in response. In the case of the Madrid Tenants' Union, the complaint was filed in February for practices "openly contrary to the law," such as charging fees, imposing abusive clauses in contracts, and violating the right of withdrawal, among others. "The sanction announced today shows that Lloguer Segur goes further. Beneath the grandiloquent rhetoric of criminalizing tenants and protecting the owner, there was a permanent scam of which the tenants themselves were also victims," says the association. Alquiler Segur announced this Thursday that it will analyze the case to assess whether it will file objections and has maintained that it complies "scrupulously" with the law and that all its processes are audited.
This new procedure it has opened follows what the Ministry of Consumer Affairs already initiated three months ago against a platform dedicated to the rental of tourist homes, motivated by the presence of thousands of short-term accommodation advertisements that were classified as illicit advertising because they constituted a violation of the general law for defense. In February, several sanctioning proceedings were also opened against companies that manage tourist homes in different autonomous communities, after it was detected that these companies allegedly offered false information or information that could mislead recipients.
Alquiler Seguro has 61 offices open in Spain and has more than 300 staff throughout the country, with almost 100,000 tenants in the rental homes it manages.