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Spain Information · Joined: 21 Oct 2006 Posts: 19 Home Country: spain

HOUSING IN SPAIN

RENTAL MARKET

More and more Spaniards have been buying instead of renting their housing in recent years. Spain now has the lowest EU rental rate at 13%, compared to an average of 40%. Low salaries and expensive housing mean that most Spaniards are living at home longer (late 20s/early 30s) and then buying a home.

Property prices have risen dramatically over the past several years due to a boom, so there has been upward pressure on rentals. Monthly rentals for a 1-2 bedroom furnished flat start at €600/month in Madrid and Barcelona. A cheaper option is a shared apartment (piso compartido), which may start around €300/month in the major cities.

Other options include staying with a family or in a pension, residencia or colegio mayor (student hall). These often provide more flexibility in terms of rental terms, can be economical and, in the case of staying with a family, will help improve your Spanish.

May to July is the best time for flat hunting; August can be difficult as people are on holiday. September tends to be the worst month as people return from vacation and students start a new year. The housing market can also be slow over the Christmas period.

Finding a good apartment at the right price before you arrive in Spain is difficult. Landlords prefer to meet tenants before signing a contract and the wide range in quality means it is not advisable to commit to rent a flat "unseen". If you require your living arrangements to be organized before you arrive, you can use an apartment rental service. However, these do tend to be expensive.

GETTING STARTED

Finding a place to live in Spain is all about patience and persistence. As in many places, it can be a long, time-consuming and frustrating process. The typical search takes at least a week to 10 days - don't make the mistake of thinking you will find something and be moving in after a few days!

Plan on doing a lot of walking. It's a great opportunity to discover the city that will be your new home. The first step to locating accommodation is to familiarize yourself with the different neighbourhoods (barrios). Buy yourself a pocket-sized street guide (callejero or guía urbana) and get to know the local bus and metro lines. Explore different areas, talk to people and spend some time walking around. This will help you decide where you want to live.

Once you have some target areas, the real fun begins. Make sure you know what you are looking for before you start. A list of desired characteristics for your future home is essential, but make sure you split it into "essential" and "nice-to-have" items.

If you don't speak Spanish very well or are lacking in confidence on the phone, try to find someone who is willing to help. Like just about anywhere, people tend to have less patience with foreigners and will not struggle through a conversation that is going to take half an hour.

Take some time to write down the questions you want to ask in advance. Also, you might find it useful to prepare a few lines that you will use to describe who you are and what you are looking for. Some preparation might save you some trips to see apartments that are very different from what you want.

THE SEARCH

Whether you're looking for an apartment or just a room: local knowledge is key. If you're not willing to spend a lot of money on an estate agent, you will have to get used to a housing market that relies a lot on local advertising.

Walking around

This method might seem a little strange to people who are used to housing markets that mainly rely on classifieds and professional agents. However, it can be quite effective in Spain.

Walk around the streets to see what is available in your desired neighbourhood. Many empty apartments have an orange se aquila (for rent) sign outside or on the main building entrance. If a sign says "razón portería/portero", then you should enquire with the concierge/caretaker about the flan for hire. For large buildings, it might be worth talking to the concierge (portero or conserje); if you ask nicely, they might know if people are moving out and put you in contact with the owners. Check out the bulletin boards at the local language schools, universities and also posters in the street and lampposts.

Networking

This is a way of life in Spain and looking for a home is as good a time as any to begin. Given the lack of rented housing, a lot of the best places are not generally advertised, but are recommended by word of mouth because landlords prefer "known" tenants. Talk to friends, family members, classmates, work colleagues, etc. and let them know that you are looking for a place to live. The more people that know you are looking, the higher the chance you will be pointed in the right direction.

Classifieds

On the basis of quantity, classified advertisements offer the most housing possibilities. The bad news is that competition for these places is intense. Many advertisers fill up their schedule for showing the property early in the morning of publication.

It's best to start early and be persistent. If you can't reach someone in the morning, the next best times to call are around lunchtime (1:30-4:00pm) and after work (8-10pm). If you get an answering machine or voicemail, don't bother leaving a message as many people will not return calls. Lots of newspapers and local magazines have an inmobiliaria (property) section offering rentals. Segundamano (Mon-Fri, €2.70) carries about the most comprehensive listings of available rentals. Many publications also offer the possibility of placing a wanted ad (demanda) for free. However, your time might be better employed elsewhere as it is highly unlikely you will be contacted by a landlord. These are useful when looking for roommates though.

Estate agents

If you’re having trouble finding a place or are in a rush to get settled, there are two types of paid accommodation services:

(i) agencias inmobiliarias (real estate agents) and
(ii) room finding services.

There are many agencias inmobiliarias in every neighbourhood. Although their main business is selling property, most agencies tend to have at least a few flats for rent. Their fee is typically the equivalent of one month’s rent. This is an expensive alternative, but worth it if time is limited.

Room finding services are more proactive and cost a bit less. They charge an upfront fee (typically €60-120) and then try to find an apartment that meets your requirements. Although this sounds like a smart choice, these services aren’t always as good as advertised. You might be sent first to overpriced or substandard apartments in an attempt to unload those hard-to-rent properties.

In order to avoid this, it's best to talk to others who have used the service and to ask the agent to see a list of properties that match your constraints before you hand over any cash. They may not show you everything, but the best services will at least try to address your concerns. In case you do get caught in the situation of being sent to lousy apartments, the key is to be persistent and do not accept a flat simply because the agent pushes you.

One final note regarding paid services: both real estate agencies and room finding services might inflate the prices of apartments in order to extract a better commission from the property owner. Don’t be scared of trying to negotiate a better price. The worst that can happen is that they turn you down.

THE CONTRACT

Negotiating rental agreements is generally straightforward and easy. You just need to make sure you understand everything and be aware of how some things work.

Contract: A typical contract runs for one year. Be sure to read the contract carefully and ensure everything is clear. If the contract specifies inventory (dishes, linen, etc.), make sure the items are there. In addition, check that all electrical appliances and utilities are in working order. Don't take a verbal guarantee that defective items will be fixed later, get it written down in the contract or done now.

Utilities/gastos de comunidad: Depending on the landlord, utility expenses and community fees (gastos de la comunidad) may or may not be included in the rent. Community fees generally cover the costs of the doorman, general maintenance and trash collection and sometimes one or more of the utilities. Just be sure to ask which items you will have to pay for individually (in particular, heating can be a rather large expense.)

Deposit: Most landlords ask for a security deposit (fianza) of 1 month and sometimes 2 months if the flat is furnished. Anything more than this should be avoided. You also may be able to negotiate the conditions concerning the return date of the deposit or try to use it to pay the last month's rent. Naturally, it is preferable to get any additional agreement in writing.

Other guarantees: Given that Spain's legal system does not offer strong protection to property owners, it is very common for landlords to ask for additional guarantees. If you are working, a copy of a payslip (nómina) is requested as proof that your monthly salary exceeds the rent. If you are a student, landlords may require a letter from your school to certify you have the necessary means.

Aval bancario: As a further guarantee, landlords sometimes request an aval bancario. It is essentially a letter of credit from a Spanish bank guaranteeing that if you default on your obligations, the bank will pay whatever is owned for the remainder of the contract.