The property regime, despite being the majority trend, is losing strength with tenants. This is due in large part to the socio-economic situation of Spanish citizens, to the elimination of the deduction for investment in regular housing and also to the exhaustive restrictions and requirements that are established when granting mortgages and loans for the purchase of homes and premises.
Job insecurity also plays an important role, since the lack of long-term jobs means that we do not consider buying a home, not only because we cannot afford paying mortgage payments but also because we never know “where this will lead us to.”
Rent takes priority, and so prices rise; the greater the demand, the greater the price. This is the Law of Supply and Demand. Tenants are concerned about getting to the end of the month, being able to handle all expenses and keep their residence as their home as long as possible. But in the event of an economic contingency, you don’t have any other options but to stop paying, first the “non-essential”, until you reach something “essential” such as the rent. There will be a part that covers the deposit; otherwise they will “throw you out.”
There is also the concern of the leasing party, they have a second home, which they take care of, perhaps inheritance from parents, or their only home that has had to be left for a transfer, or at a time of prosperity a couple had two houses, each his own, until they decide to live together in one of them and rent out the other, and continue paying its mortgage, taxes and maintenance. They need additional funds to deal with all this; they want or even need to rent the house, but they fear that poorly chosen tenants will destroy the house or these tenants stop paying the rent and they will have to take care of all the expenses without being able to gain access to their home.
Vandalism and the rent not being paid are the main concerns. Solution: Rental Insurance, which covers Legal Defence in relation to the insured house or premises, it covers the expenses and economic damages derived from the rent not being paid, and material damages caused by the lessee party from vandalism.
We cannot fix the real estate market, but we can create solutions to the biggest concerns that it carries. Come to our offices and we will advise you.