Temporary rentals that last under a year are becoming extremely popular in Spain, with a rise of 200 percent in 2022.
This is not only because the added degree of flexibility is something that many tenants are looking for in this fast-paced world of international students, digital nomads and remote workers, but also due to the fact that it offers landlords perks that regular long-term rentals don’t.
Shared accommodation for university students are one of the type of temporary rentals that have increased in number the most, 34 percent over the past year, in large part because Spain has almost two million universitarios to accommodate.
This rise in stock is also partly explained by the fact that landlords have been more willing to rent out to students as “the rooms offered in shared flats are not subject to Spain’s new Housing Law, but by the country’s Civil Law, so they are not subject to price limits”, head of research at property portal Fotocasa María Matas told Spanish radio station Cope.
READ MORE: Six key points about Spain's new housing law
In essence, landlords who rent their properties to students can make double or more than if they were renting it out to a single family, and they don’t have to abide by the new rent freezes.
We’re not promoting that landlords overcharge students in Spain as a result, but instead stressing that even by charging them a decent rent you stand to make bigger financial gains from your Spanish home, and at the same time helping to solve the lack of student housing in the country.
The average monthly rent for a room in Spain is €445 but the going rate per room in big cities such as Madrid and Barcelona is as expected higher.
There are 237 higher education facilities in Spain (82 universities) so if you let out a property in a city or town these are some of the other Spain-specific advantages that come with renting out to students that you may not have considered
The pros of renting out your Spanish property as shared student accommodation
- Higher education academic years in Spain tend to last nine months, with a three month break during the summer which can give landlords the chance to rent out the unit as a holiday rental.
- Temporary rental contracts on a month-to-month basis aren’t subject to the Housing Law’s rent freezes and also give the landlord the chance to end the contract more easily if they don’t want to keep the tenant or if they want to use the property for another purpose.
- Renting out rooms rather than the whole flat can increase a landlord’s revenue from the property by 30 to 50 percent on average.
- In Spain, it’s usually parents who pay for their childrens’ studies and accommodation during this time (part-time jobs and student loans are uncommon), which generally means there’s a far lower risk of non-payment.
- It is possible to ask students for a deposit for shared student accommodation which helps to lower the chances of furniture and appliances being damaged, and if they are for them for their repair or replacement costs to be covered.
- The two types of rental contracts that can be drafted (contrato de arrendamiento por habitaciones or contrato de piso compartido) can include clauses such as no smoking, no pets etc
- Renting out to people between the ages of 18 and 35 in Spain means you can deduct 70 percent of income tax on those rental earnings on your annual Spanish tax return.
READ ALSO: Is subletting legal in Spain?
Cons of renting out your Spanish property as shared student accommodation
There aren’t as many cons to renting out shared accommodation to students in Spain but these can include:
- Increased paperwork as more rental contracts have to be drafted more regularly, and if the property is rented out as a short term holiday rental during the summer, potentially more work and stress.
- Higher chances of parties taking place that cause issues with the community of neighbours
- Increased possibility of property being damaged with greater influx of different and more careless tenants.
READ ALSO: How to find temporary accommodation in Spain
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