For rent
Renting out your home in Madrid
Letting a fine home well means choosing the right tenant, not the first one to call.
To rent out your apartment in Madrid you need a well-judged rent, an energy performance certificate, a contract that complies with Spain’s Urban Tenancies Act (Ley de Arrendamientos Urbanos) and a tenant who can pay. As your letting agent, we take care of whatever you wish to hand over: setting the rent, showing the home, checking each applicant’s finances and preparing the contract with you, and full property management if you want it.
How much rent can I ask?
The rent is set by what is being let nearby, in comparable homes: size, floor, light, condition and whether it is furnished. Asking too much leaves the home empty for months; asking too little costs you for years. We give you a reasoned figure for your home before it is advertised.
Working out the rental yield
The simple calculation is the annual rent divided by what the home is worth. The one that matters is the net figure: from the annual rent you subtract the community fees, the property tax (IBI), insurance, maintenance and any months it may stand empty, and divide by the value of the home plus what it cost to get it ready. That way you compare your apartment with any other investment on facts, not hunches.
Choosing the right tenant
A good rent is worth nothing if it is not paid. Before signing we check the applicant’s identity and income, and tell you clearly why we would or would not recommend them. You have the final say.
The paperwork
- Energy performance certificate. The label must appear in the advertisement, and a copy is attached to the contract.
- The contract. If you agree a term of less than five years (seven if the landlord is a company), the contract is renewed each year until it reaches that minimum, unless the tenant gives notice.
- The deposit. It is compulsory and equal to one month’s rent for a home. In the Community of Madrid the landlord must lodge it with the regional social housing agency (Agencia de Vivienda Social).
- Agency fees. The costs of property management and of drawing up the contract cannot be passed on to the tenant.
Property management in Madrid: what you can hand over
If you live outside Madrid, have more than one home let, or would simply rather not take the call about the boiler on a Sunday, we can also look after the let itself: collecting the rent, dealing with incidents and repairs, and closing the tenancy when it ends. If you prefer, we can do only the first part: finding the tenant and preparing the contract. What is included, and what it costs, is set out in writing before we start, and you pay it as the owner.
The homes we are letting now
- For rent
For rent
For rent
What owners ask us
What do I need to rent out my apartment in Madrid?
An energy performance certificate, because its label must appear in the advertisement; a contract that complies with the Urban Tenancies Act; and a deposit of one month’s rent, which in Madrid is lodged with the regional social housing agency. It is also wise to review the home’s insurance and to be clear before signing about which costs each party will pay.
What is a good rental yield?
There is no figure that suits everyone: it depends on what you paid, the neighbourhood and how much risk you accept. What helps is to work out the net yield, subtracting from the annual rent the community fees, property tax, insurance, maintenance and empty months, and to compare it with other options for your money. We will help you do the sum for your home.
Which documents should I ask a prospective tenant for?
It is reasonable to ask for the applicant’s identification and evidence that they can pay: an employment contract and recent payslips, or a tax return if they are self-employed. If rent guarantee insurance is taken out, the insurer reviews the same documents. Ask only for what is necessary and keep it carefully: it is personal data and it is protected by law.
How much does property management cost in Madrid, and who pays?
There is no fixed price: it depends on what you hand over. The owner pays, and we give you the cost in writing before we start. What the law does not allow is passing the costs of management and of drawing up the contract on to the tenant.
Let’s talk about your home.
We will tell you what rent to ask, whom to let it to and which papers to prepare. You decide.