Basque Country launches public insurance for landlords
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The Basque Country government in Spain will provide a public insurance program, Alokaplus, to protect small landlords from unpaid rent.
The program aims to increase housing availability by encouraging owners hesitant to rent due to financial risk. Alokaplus will cover up to 14 months of rent, potentially extending to 20 months for tenants who are 35 or younger, over 65, or have dependent children.
To access the insurance, landlords must pursue legal action to reclaim a property from a tenant who has not paid. The government will then cover the unpaid rent and any damages, but will later seek reimbursement from the tenant. The program applies to both new and existing rental agreements, requiring consent from both landlord and renter. This initiative builds on the existing Bizigune program, which has mobilized private housing for social rental for 26 years.
Bizigune currently accounts for about 27% of the Basque Country’s total social housing stock, around 7,500 units out of 28,000. The government hopes Alokaplus will bring an additional 25,000 vacant properties onto the rental market, though it remains to be seen how many owners will participate.
