The Valencia Rental Market
“What on earth is going on with the rental market in Valencia?” I hear you cry!
I have wanted to write about this for some time now as the Valencia rental market has dramatically changed over these past few years and we have so many clients coming to us in sheer desperation, struggling to find a rental.
I can confirm that the Valencian rental market has gone quite bonkers! It’s not surprising really, with Valencia being such a sought-after city to move to for its excellent all-year round climate and renowned quality of living. Expats from around the world are literally arriving in droves. Valencia based relocation experts YES Valencia and Settle Easy, Encantada included, report that the demand for relocation assistance has increased by thirty percent since last year and with this high demand, comes the fact that there just aren’t enough properties out there to cater for this demand.
In this article I want to talk about the different issues you may encounter when looking for a rental in Valencia, to help any future Valencian expat mentally prepare and navigate the whole process. So where does one start and what are the pitfalls that one should look out for?
Prices have sky rocketed
Some clients of mine reported quite recently that they had the feeling of “tourists go home!”.
Unfortunately for Valencian natives, the influx of foreigners has meant that property prices have sky rocketed over the last few years, pushing them further out of the city. Just two years ago, you could rent a nice 2 or 3 bedroom apartment in the city center for around 800 to 1000 Euros per month. Fast forward to today and landlords are charging almost double that amount and if the apartment has been recently renovated and in good taste, you can expect the increase to be even higher. Nowadays if you want something decent in an attractive neighborhood such as Russafa, Carmen, Pexina, Botanico or Canovas, you will struggle to find anything below 1500 Euros per month.
According to SalaryExpert.com the average Valencian salary is 31.520 Euros per year or an hourly rate of 10-15 Euros, which is less than half of what an average American or someone from the UK earns. Currently, the main visa options available for anyone from outside of the EU are the Non-Lucrative Visa, where you must be economically sufficient and not be a burden on the Spanish state ,or the Golden Visa where you must make an investment of 500,000 Euros upwards. This means that the majority of expats moving to Valencia tends to be a mix of executives and entrepreneurs who can afford these higher rents, something that landlords are taking full advantage of. Be prepared to up your budget and spend more each month than what you may have originally been told or read.
A touch of bait and switch
You may come across adverts of good looking and affordable apartments that stay on Idealista for weeks or months and so why are they never available when you eventually speak to an agent? We can’t prove it but I am certain that some agencies are using a bait and switch tactic, something that you may encounter on your search.
Pick up the phone and call the agent
Because of the state of the market, the real estate agents here in Valencia are incredibly busy. Aside from running around town on visits or trying to find new properties, they’re inundated with requests from the different platforms, emails and texts, and the second an advert is published, the apartment, if it’s any good, will be pretty much snapped up on the same day. These poor guys just don’t have the time to keep up and respond to all the requests.
So, what are you supposed to do? We advise that you do it the old-fashioned way and pick up the phone and call. You must get in front of the agent, some speak English, if not and you don’t feel up to it, get someone who speaks Spanish to call on your behalf. Win them over, get them on your side and make them want to help you. Chances are higher that you’ll get the help that you need if you can actually speak to someone on the phone.
Landlords are reluctant to rent to foreigners
Once you’ve gotten over the first hurdle and found your potential rental then you have to work on the landlord and unfortunately some landlords are very reluctant to rent to foreigners.
Sadly, being a good human being and the promise of paying your rent on time just isn’t enough, in most cases. If you’re not employed in Spain and don’t pay your taxes here, there are many landlords that simply won’t rent to you as they deem it too risky. The reason is that there is no guarantee that you won’t mess up the apartment, not pay the rent and leave the country never to be seen again! This is due to Spanish law which protects the tenant. If a tenant doesn’t pay their rent, it is incredibly difficult to evict them. Therefore, the landlord wants a maximum guarantee that he won’t encounter any problems.
The agent will likely know this about the landlord beforehand, so if there is a chance and you have enough proof of solvency, they will negotiate with the landlord on your behalf. So you must make sure you have all your documentation ready to send on to the landlord.
Get your documents ready
The rule of thumb is that you need to earn three times the amount of the rental. You will be asked for your NIE (Foreign Identity Number), although some landlords will accept a passport number in the interim while you are getting your NIE. You will also be asked for a Spanish work contract and your last Spanish tax return.
If you have all of this then typically you will be asked to pay a month’s rent for agency fee (plus 21% VAT) to reserve the apartment and then a one or two month security deposit plus the month’s rent, therefore you should expect to pay up to four month’s worth of rent before signing.
Be prepared to pay more upfront, get insurance of non-payment or a bank guarantee
In the absence of a Spanish employment contract, be prepared to pay more in advance. We hear of cases every day of tenants having to pay six month and sometimes even the year ahead of time. On top of this, the landlord will most likely request bank statements, pay slips and tax returns of your home country. If still not satisfied, they may ask you to take out an insurance of non-payment, which for the year is the equivalent of half a month’s rent, or in some cases, an “aval bancario” (bank guarantee). We advise against the latter as you essentially are holding a year’s worth of rent hostage which you cannot touch as well as continue to pay your rent each month and bank fees on top (!).
Review your contract properly
Once you have overcome this last obstacle, you must make sure that you review your contract thoroughly or have someone review it for you. Be on the look-out for poorly written contracts and make sure it is a contract that defends your interests! For a long-term rental, make sure that you check the duration of the contract and that you have the right to renew. Also look out for the notice about leaving the apartment to confirm that it is fair for both parties. The usual notice period should be a minimum of thirty days. If a contract is for one year, note that it is mandatory by law that the tenant can renew for up to five years in total.
Other important clauses in the contract that you should also consider before signing are the rent, the expenses paid by each of the parties, and any works that can be done in the apartment etc.
In all cases, we strongly recommend that a legal representative reviews the contract on your behalf. We have had one case where we have had to rewrite the contract entirely as it was so badly written. The contract will be in Spanish however you can request a sworn translation from the agent or your legal representative.
Teething problems once you are in the apartment
Last but not least, you may experience a few small teething problems once you’ve moved in. Minor glitches such as leaks or the power not being high enough to support air con and the washing machine being on at the same time are quite common unfortunately. For any immediate issues such as these, you have fifteen days to report all necessary fixes and the landlord is required by law to fix them within a certain time frame.
We also recommend that you avoid moving during certain times: August and in the first two weeks of March during Fallas. These two particular times of year, as well as on the many Saint’s days, Valencia shuts down and empties out which makes it impossible to get anything done. You’ll be at home struggling with whatever issue while your landlord and his trusty handy man are at the beach!
All this stress, is it worth it?
It does sound like an awful lot of hassle doesn’t it? I hope I haven’t put you off the move but if you have got to the end of this article (thank you!), I want you to know that all the stress is totally worth it. I can’t think of one client that we have helped relocate to Valencia that is not happy here. Some take a while to adjust but all in all they end up fully enjoying their new Valencian lives.
How can Encantada Help?
I did not want this piece to be any sort of self-promotion but please know that if you are struggling with finding a rental here in Valencia or can’t bear the thought of struggling, Encantada are here to help you throughout the whole process.
Please feel free to visit our website or email us directly: steph@encantadaworld.com to find out more.
THANK YOU FOR READING