handbook for renters in madrid -...

Handbook for...

Renters in Madrid

After reading this handbook, you will be ready to take the right decision and set the right expectations: budget, properties you can afford, location, and also how

to find your dream home.

www.moving2madrid.com

MADRID PROPERTY SEARCH AND RELOCATION FOR EXPATS

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What’s inside this book?Introduction 3

Chapter 1: What are the rental prices in Madrid? 4

Chapter 2: What are the best neighborhoods? 5

Chapter 3: What is the final total budget to expect : bills, surprises etc? 7

Chapter 4: How much can I expect to negotiate? 9

Chapter 5: How to avoid traps when signing a rental contract? 11

Conclusion 12

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IntroductionFirst steps ?

Do you feel overwhelmed with all the information available, and do not know where to start ?

I am Pierre Waters, founder of Moving2Madrid, and in this ebook, I will answer the 5 essential questions all readers and clients ask us at the start:

Prices: What are the prices for renting in Madrid ? Neighborhoods: What are the best neighborhoods ? Total Costs: What is the final total budget to expect ? Negotiation: How much can I expect to negotiate ? Risks: How to avoid traps when signing a rental contract ?

I keep it as simple and realistic as possible. The newsletter series you receive to will deconstruct this same information email after email so we make sure no stone is left unturned.The ebook in the end is meant to have all the information in one place: for an initial read or for reference. The newsletter series are meant to get one piece of information a time, making sure all details are covered, without being overwhelming. If you need more details or have questions along the way, follow the links or just send me an email at [email protected] with your questions.

What you’ll get out of this ebook

5 chapters, each covering the main questions, with direct simple answers, followed by more detailed explanation so you can also get the complete picture.

After reading this handbook, you will be ready to take the right decision and set the right expectations: budget, properties you can afford, location, and also how to find your dream home.

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What are the rental prices in Madrid?

Chapter 1

The first step of all, before even answering this question, is the less romantic: ensure that you will have the money to support you dream. Planning and preparation are key to a successful purchase. You will need to put down from 2 to 6 months down to rent: 1 month deposit minimum, plus first month’s rent. Then, depending on your risk profile, landlords ask more or less deposits on top of this minimum.

Ok then - How much renting an apartment with 1/2/3/4 bedroom(s) cost ?Well, in my experience, for apartments foreigners like in neighborhoods they feel comfor-table living in, the “sweet spot” for rental prices are usually the following:

Studio, 30 to 50 m2: 700 – 900 € per month

1 Bedroom Apartment, 55-100 m2: 800 – 1500 € per month, up to 2000 €

for premium properties (like the one of the photo)

2 Bedroom Apartment, 80-120 m2: 1200 – 2000 € per month, up to 3000 €

for premium properties

3 Bedroom apartment, 100-180 m2: 1500 – 2500 € per month, up to 4000

€ for premium properties

To put it simply, the bottom of the range would give you a standard apartment for inter-national standards, the middle a nice property, the top total “wow” effect with outdoor space in most cases.

Remember, also that for shorter terms than 12 months, the monthly rental price will be increased by 20 to 50 % compared to its yearly equivalent.

Which leads us to our next question - where should you rent given these prices ?

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Where is the best neighborhood to buy a property in Madrid?

Chapter 2

The Most Exclusive1

The question we get most is: „Where is the best neighborhood to buy a property in Ma-drid?”

Well, in fact, the exact question I get many times is „What are the best neighborhoods in Madrid ?”

Salamanca – Luxury, Shopping, History

Justicia / Almagro - Classy, parisian-like, designers

Opera el Madrid de los Austrias - Historic, authentic, cultural

Las Letras / Cortes – Cultural, Historic, Gastronomy

• 3-words to describe each neighborhood

• links to detailed presentation of each „barrio”, with photos and even videos, all home-made or hand-picked

• link to my interactive map of the best neighborhoods for foreigners

The answer is: It depends on your budget and criteria.

However, I know what foreign buyers expect, what surprises them, and what kind of neighborhoods they like to purcha-se in.

Therefore, we created a first overview and summary.

The Contenders3

Lavapies / Anton Martin – For value right in the centre – Multicultural, Alternative

Chamberi – For larger apartments just north of the centre – Authentic, small-town feeling, practical

Chamartin – For staying closer to your office north of Madrid – Business, Eating Out, Residential

Moncloa / Arguelles– For living the student lifestyle or to be close to Madrid’s Northwest gate – Students, Party, Green

Retiro – For larger apartments for families close to the park: Green, posh, family-focused

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This list, along with our interactive map, will give you an overview of the personality of all the best neighborhoods in Madrid in 3 words for each neighborhood, with a link to the detailed article, all of them distribu-ted in 4 groups to make it easier for you to approach:

The Hip & Trendy2

Chueca - Trendy, mixed with traditional and gay

Malasaña - Hipster, Bars, History

La Latina - Tapas, Historical, Traditional

Sol & Gran Vía - The city’s meeting point, shopping&eating out, entertainment

The Suburbs4

North-West, from the closest to the furthest: Pozuelo, Majadahonda, Boadilla, Las Rozas

North-East, from the closest to the furthest: Arturo Soria, La Moraleja

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What is the final total budget to expect : bills, surprises etc … ?

Chapter 3

Want to know now how much you might spend on utilities in Madrid ?

I will give you a breakdown here and some extras and surprises you might want to know about before arriving – just to be on the safe side of things.

with clients and feedback from the expat community:

• Studio or 1 Bedroom Apartment: 100 € on average (total)

• 2 Bedroom Apartment: 150 € on average (total)

• 3+ bedroom Apartment or House: 200 € on average, leaning towards 300 € for ho-uses.

You will find on our site details on how much renting or buying such properties will cost in Madrid.

The Breakdown...The total amounts just presented are variable, depending mainly on the following:

• Water: around 20 € per person per month, or less if you have your own boiler or the old

Utilities

1 How much you should pay monthly for utilities

To put it simply, all included (water, electricity, gas, phone and internet) monthly, according to my experience

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These bills are directly included in the “community costs” paid by the landlord. 99% of rentals include it, but some tricky landlords may try to charge it to you. Check the typical conditions for renting in Madrid and make sure your contract is fair.

• Electricity and/or Gas: 50 € per month, up to 100 € if you have extensive use of air conditioning, heating and electronic devices.

• Internet & Landline phone: 40 € per month for the basic, 65 € if you want optical fiber. This includes always 13 € + VAT for the maintenance of the line, which includes having a landline. Yes, I know, many of us don’t need it. It’s mandatory. You might as well take advantage of the free landline to landline calls.

2 On top of these essentials, the following bills

are typical add-on expats have when living in

Madrid:

• Home insurance: around 150 € a year for a standard policy from a leading

Extras

insurance company – I recommend Mapfre – up to pretty much whatever amount you feel is required to cover you. I recommend a standard policy to start with.

• Television packages: 10 to 50 € more a month, and 300 € installation if you want a satellite dish to receive your channels from your country of origin

• Additional taxes: should be paid by the owner of the property, as for the community costs. Again, it’s the case of 99% of rentals, but some forget to specify it in the contract. Some may even try to make you pay only the new taxes, like the “Garbage tax” in Madrid, for about 50 to 300 € a year, depending on the size of your rental. All this depends on negociation, but my advice is to remind that the normal thing to do now in Madrid is to include it all in the contract.

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How much can I expect to negotiate?

Chapter 4

„Madrid is full of distressed owners ready to listen to whatever rental offer”

Wrong...It’s in fact one of the key preconceived ideas about Madrid real estate market.

Another one is:

„Finding a good property is easy, and they will receive me with open arms.”

Wrong again...Why ? Because you want the best in the category you are interested in. Whatever your budget, you have good taste, have experience and want to get the best out of your budget.

And right now, the best of the market, this top 10%, even in the crisis, has demand.

Yes, the global market is still on the side of tenant in general. However, the market is on the landlord side if the apartment is modern and in the centre.

So if you go for modern apartments in the most attractive neighborhoods of the centre of Madrid, do not expect any big discount.

Expect quality properties with great environment, shops and entertainment around it, and your favorite properties being rented in less than a week on average, based on my experience.

So can you negotiate ? Yes, and please do !

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However, negotiate from a position of strength, and with knowledge of the market.Have more options than the landlord, have 2-3 options and ask for 10% discount, in general minimum 50 €, go for 100 € discount if you feel it’s open and you have options.

In our experience however, we see that foreigners moving here always have one favorite.Therefore we have much less leverage than the landlord who always has 2-3 people intere-sted after a dozen of viewings.

So in most cases, 50 € is the typical discount you get, and many times, the price is already great, and the deal is closed. In fact, any need to negotiate more than this shows that the property was over-priced, which is not the case of the rental market, compared to the sale market. I would rather negotiate on negotiating the conditions of the rental, as the contract can con-tain risks, as I will explain in the next chapter.

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How do I avoid traps when signing a rental contract?

Chapter 5

The first 6 months is of mandatory completion legally. Would the tenant want to finish the contract early, the landlord can ask the tenant to pay up to 1 month for year not complied as a compensation for finding a new tenant and the work involved.

In Spain, the law is a standard, and the private contract can state additional clauses. Therefore 80% of landlords set the minimum stay at 12 months. This is a clause we often negotiate.

According to the law, the tenant can leave at any time after this initial mandatory time by expressing his wish to leave at least 30 days in advance of his desired exit date.

On the other, the landlord cannot end the contract before 3 years after the signing of the contract. The tenant has more power.

In general, the rental contract should be reviewed by a lawyer or an expert, or understood completely, before signing. Do contact us at [email protected] for professional reviews if you need to.

Yes, in the end, there is no magic bullet.

However, there are key questions you have to ask, and a method you have to follow to get the most out of your move here.

My team and myself will be delighted to discuss in detail, answer your specific doubts, by any of the following means:

1. Send us your questions directly at email@moving2madrid, so you can reach the entire team and get the most relevant expert to answer.

2. Send me directly a question via twitter @pierrewaters if you have a personal comment or feedback on this ebook or its content.

3. Call us directly at +34 911 980 685 and we will answer your questions right away.

4. Book a free 1-on-1 consultation with our Buying Expert Arash, by choosing the most convenient time and day for you on this page: http://www.meetme.so/arashmoving2madrid.

Thank you for reading, and we are looking forward to answering live your questions !All the best,

Pierre-Alban Waters & the Moving2Madrid team

MADRID PROPERTY SEARCH AND RELOCATION FOR EXPATS


ConclusionHow to get the most out of your move to Madrid?

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