In search of the good tenant: landlords raise prices and guarantees to secure the rent

• Housing Law Will force large landlords to lower rents and freeze prices for individuals

The announcement on the real estate portal said: "Economic conditions: three months (entry, bond and agency). The sum of income of the tenants and / or guarantors

.

It is becoming more and more difficult to become a tenant because landlords are increasingly setting higher demands for handing over the keys to their homes.

And it does not stop there, since they warn that the situation will increase in the face of the future Housing Law.

Landlords have begun to take positions to protect themselves against the changes announced by the law recently approved by the Council of Ministers.

They say they feel "criminalized" and seek to ensure the stability of their future income, even if it is at the expense of the pocket of the tenants in the present.

"The new owners arrive very cautiously, they

to find a tenant who can pay it. Also, if they have to maintain the contract for more years, they are covered before the freeze."

, president of

,

tells it

, confirming what is a trend that is being repeated more and more in the company's offices.

The guarantees, which had already been high in the face of the economic crisis and the risk of vulnerability of families, have become even more important in the face of a scenario in which rents could be regulated since, if prices are standardized Due to exogenous intervention in the market, it will be the tenants with the highest level of trust and security who will have the best position to rent more easily.

"The possibility of limiting rental prices greatly limits the terms in which the offer is developed, which

-and is also detrimental to the tenant-, or

. This is so because if it cannot find the

via the market price, it will require, at least, payment guarantees and other differentiation mechanisms, "says

president of

, an

specialized in this insurance sector.

Pérez Acebo refers to data from the Spanish Rental Insurance Observatory, according to which

in traditional insurers and up to 50% in new brokerages.

"In the case of Avalisto, in the second quarter we equaled all the sales of 2020 and we reached the fourth quarter of 2021 with expectations of closing the year tripling those results," he adds.

Default insurance

The concern is also noted in the activity registered by portals and comparators such as

, which between January and July of this year saw an 80% year-on-year increase in searches related to non-payment insurance. "In rental insurance you first do a study to see the viability of the insured, and this year there have been 50% more requests of this type. The normal thing is that the person who completes it really has an interest in hiring the product ", explains

, Rastreator's insurance manager.

As indicated by the company, the average price of this type of insurance is based on the monthly rent.

"That is, for a rent of 1,000 euros, if you cover 18 months of non-payment, 795 euros are paid per year without excess and from the first month," they explain.

"What has been seen is that many companies have expanded their coverage in this type of insurance, which makes the contracted premium higher," they add.

And Antonio Carroza, from Safe Rental, corroborates it.

"There has been a

, from 2.5% to 5% of annual income," he says.

Housing Law

Interest in this type of products and guarantees for leasing has already begun to show signs of increase at the beginning of the pandemic, given the risk to the household economy, the possible increase in delinquencies or the drop in demand.

And to all that has been added in recent months the uncertainty surrounding the future Housing Law.

The draft approved by the Government obliges large holders to

as stressed areas and, in the case of individuals, establishes a system of incentives and bonuses that will be activated as long as the owner agrees to reduce the prices or, at least, not to raise them.

In practice, these measures will entail, at the very least, a freezing of the incomes received and the owners prefer to go ahead to avoid being stagnant.

The tenants will have to fit the other side of the coin, that is, the increase in rents, the greater demands for guarantees and bonds or, even, the payment of the insurance contracted.

Access to the rental market is narrowing and in the sector they warn that there could even be situations of discrimination for not complying with the required levels.

According to the criteria of The Trust Project

Know more

• economy

• living place

• Rental

• HBPR

Homeowners and tenants, against: keys and news of the new Housing Law that the Government has approved this Tuesday

The new Housing Law will force large owners to lower rents and freeze the price for individuals

Housing Confusion and surprise among investors and large owners: "The Housing Law is a political bargaining chip" and "reduces supply"

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