The Spanish Ministry of Social Rights, Consumer Affairs, and Agenda 2030 has opened a formal investigation into a major nationwide real estate agency over alleged abusive practices in rental management. The ministry is also investigating other similar companies for reportedly charging illegal commissions and forcing tenants to purchase unrequested services.
This action stems from an investigation initiated by the Consumer Affairs division in October, which remains ongoing. The ministry has not disclosed the name of the main agency under scrutiny.
The Directorate-General for Consumer Affairs began gathering information after receiving formal complaints from the Tenants’ Union (Sindicato de Inquilinas-CECU), consumer group FACUA, and the Organization of Consumers and Users (OCU). OCU had previously filed a complaint against “Alquiler Seguro” for allegedly charging tenants inappropriately for services. They are urging swift and exemplary sanctions aligned with the illicit profits obtained.
Reported violations include:
- Charging tenants agency fees for managing leases
- Forcing tenants to buy insurance
- Imposing other non-requested services
The Ministry reminds all parties that Spain’s Housing Law explicitly prohibits passing real estate agency and contract formalization costs onto tenants. These practices could be considered serious or very serious offenses under Spain’s Consumer Protection Law.
Serious offenses could incur fines up to €100,000 or between four to six times the illicit profit. Very serious offenses could result in fines of up to €1 million, potentially reaching six to eight times the illicit gain.
This case adds to another investigation launched three months ago against a vacation rental platform accused of posting misleading ads. That platform was warned to remove thousands of listings deemed illegal but failed to comply.
In February, the Ministry also opened cases against companies managing tourist apartments in several regions. These firms allegedly misrepresented themselves as private individuals, a deceptive practice defined as misleading under Spain’s Unfair Competition Law.
The Ministry, led by Pablo Bustinduy, insists that housing is a fundamental right, not a speculative commodity. These actions are part of a broader effort to protect consumers in the housing market.
The Ministry has already warned rental market players against practices like:
- Excessive security deposits
- Mandatory advance payments
- Requiring tenants to take on disproportionate guarantees
Opening an investigation does not imply guilt, and the final outcome remains pending.
Alquiler Seguro Responds
Alquiler Seguro issued a statement saying their services are transparent, public, and voluntary. They noted that contract management fees are paid by landlords, as stated in service agreements. Tenants, they claim, only pay for services they willingly choose.
CEO David Caraballo added that they do not yet know the full scope of the investigation but expressed willingness to cooperate. He emphasized that this is an early-stage inquiry, not a final sanction.
Why This May Lead to Rising Rental Prices
Although the government’s intent is to protect tenants, these regulations and investigations may unintentionally lead to higher rents. Here’s why:
- Shift of Costs to Landlords
With landlords now required to cover agency and administrative costs, they are likely to pass these expenses on to tenants by increasing rents. - Reduced Supply of Rental Properties
Stricter regulations and legal risks may discourage some landlords from offering rental housing, decreasing supply and putting upward pressure on prices. - Higher Operating Costs
If landlords must rely on more formal, legally compliant services, this could increase their operational costs—another factor often passed on to tenants. - Regulatory Uncertainty
Ongoing investigations and lack of clarity around what constitutes an illegal or abusive practice may prompt some property owners to withdraw from the rental market entirely, further reducing supply.
