Spain is a country of owners with 14.5 million households owning a home -whether paid, inherited or mortgaged- compared to 3.2 million living in rent. According to the latest INE Continuous Household Survey, in the Community of Madrid, the percentage of households that rent is 22%. Given the growing demand for affordable apartments to rent and the shortage of properties in the rental market, the City Council has five projects underway. Through the EMVS directed by Álvaro González, the Town Council acts as an intermediary between the landlord and the tenant. These are the options to rent or sell your house with advantages as well as renting an apartment at an affordable price in Madrid.
1. The landlord does not pay the insurance and the tenant does not pay more than 40% of their annual income
On June 17, the City Council launched a new aid that benefits both tenants – with a family income that does not exceed eight times the IPREM (4,519.2 euros per month) – and landlords – who have a flat in their name with a surface equal to or greater than 25 useful square meters. Its about Rental Intermediation Service, whereby the EVMS becomes an intermediary between the owner and the tenants to whom it offers both legal, tax and technical advice.
In addition to offering a framework of legal certainty, EMVS pays homeowners for home and default insurance throughout the term of the contract that they sign with the tenant. The EMVS will also issue the owner free of charge, if he does not have it, the house’s energy efficiency certificate, mandatory to rent a home. Of course, the owner will have to rent his apartment at an affordable price that will be agreed between the owner and the tenant with the approval of the EMVS legal advice service.
The tenant for his part will never pay more than 40% of his annual income for the house. For example, if you charge 1,000 euros a month, you would pay for the apartment 400, as long as the landlord agrees. In addition, the municipal company advances the deposit to tenants under 35 years of age. They will have 24 months to return this money without interest.
According to the data provided by the Housing area to 20minutos102 owners and 249 tenants have already signed up for the plan. Of these, they have come to fruition 56 rental contracts, of which three were under 35 years of age and have received bail. tenants who want to sign up can search here all the procedures, and if you own a house and want to rent it, you can download this form at this link and send it to the email [email protected]
2. They buy your empty apartment if it is at least 45 square meters
Another measure to expand the housing offer in Madrid is the purchase of private flats. Thus, in the last two years, EMVS has bought 190 properties from owners looking to sell in the capital. The municipal company seeks that located in the capital, which are empty and in good condition, either second-hand or newly built. Homes must have a minimum useful area of 45 square meters for two-bedroom apartments, 65 square meters for three-bedroom apartments and 75 square meters for more than three bedrooms. Of course, it does not buy single-family homes. Those interested in selling their home can sign up here.
3. The tenant pays less than what is required by law
Those from Madrid who enter to live in a protected apartment pay less than what the law establishes. As the area explains, this is due to the fact that when the City Council awards them the home, the Madrilenian only pays between 20% and 30% of their income depending on their family and economic condition. That is to say, “He never pays more than that 30%.” Although the average range is around 150 and 350 euros per month, the rent you pay is on average “50% more than what you should pay based on the price of a protected housing module.” In other words, the tenants “pay less than what the law indicates because we have established in regulations that this is the case,” says Álvaro González’s team. According to municipal calculations, these aids have amounted to 30 million euros to the coffers since 2019.
4. The EMVS builds protected housing
Since 2016, the Madrid City Council has been working on the construction of new homes. In the last two years, the Housing area has awarded applicants 773 rental homes in 13 promotions. It is also building 2,437 homes in 26 developments and already has another 909 homes projected on 13 plots in the medium term. In total that figure comes out of 4,119 new-build rental homes. Madrid residents who want to apply for municipal protection housing can sign up through the EMVS website.
5. Reviva Program
The Reviva Madrid plan aims to put vacant homes that thousands of owners have in disuse on the Madrid market, thus increasing the supply for rent. Thus, with this project, the owner cedes his empty property to the Madrid Municipal Housing and Land Company (EMVS) for a specific period of time (a minimum of four years), without obviously losing ownership of it. It does therefore receiving a monthly rent regardless of whether or not the house has an adjudicated tenant.
For its part, the EMVS offers comprehensive management of the housing lease, which allows the owner to forget about all the administrative and legal procedures, even in obtaining the energy certificate.. And if the house needs renovations, the EMVS advances the cost of the same up to a maximum of 45,000 euros At 0% interest, an advance that the owner will return little by little, discounting it from the rent that he will receive each month.
What’s more, the EMVS pays the IBI once the property is assigned. All house breakdown problems are fixed by the EMVS, because it is the landlord. Except for those that are spills approved by the community of owners, which are still assumed by the owner. As for the tenants, the EMVS offers them an offer of second-hand, renovated flats, in all districts, and at affordable prices. Owners and tenants who want to join the plan can do so at this link.