If you are here it is because you are an intelligent person. You are a flat owner and you want to understand more about the real estate business before putting your flat up for rent. If you want to know how much commission real estate agents charge or you are studying the possibility of managing your flat as an individual, we are going to solve those doubts and broaden your perspective so that you can make the decision that best suits you and your investment.
How much commission do real estate agencies charge in Madrid?
The quick answer is that there is no fixed price, which is why real estate agents charge what they consider appropriate. One of the reasons is that rental commissions are not regulated, both for the owner and for the tenant. Therefore, looking for a good offer accompanied by good service can take time.
The usual thing is that for the owner it is between 6 and 10% of the annual rent. In the case of the tenant, the usual in the Spanish market is 1 month’s rent, but it can even be 2 months’ rent.
Without doing many accounts, you will see that the rental commission can be expensive, therefore, we are not surprised that you, as the owner, seek to carry out the management as an individual and thus save money that is always good for us to have extra. But think about one thing, just as not all that glitters is gold, not all savings turn into gold and poor real estate management can not only be a constant loss of money, but also put your assets at risk.
Management of individuals.
The management of individuals in rental management is today an obsolete model. Taking into account the procedures, taxes and disagreements between the parties (owner and tenant). Disagreements ranging from contracts with abusive or legal clauses, clashes due to damage, late payment, etc.
The crime rate in 2021 has grown by 7.6% compared to 2020. It is not an encouraging figure and cannot be let go lightly. In the autonomous communities and cities such as Madrid or Barcelona, this increase in the rate of unpaid rent has been seen as a result of Covid-19. You can see it better in the following graph:
The landlords’ fear of non-payments increases and that is not beneficial for the owner, nor for the tenant and less so for the real estate market. As an alternative and a safe option, there is rental management by professional companies, like us, Geräh Real Estate Partners, in which we guarantee the rent even in the event of non-payment.
Advantages of having a real estate agency
Maybe you are thinking that you can save money that never goes wrong and you know what? That is true, but it is also true that successful and intelligent people delegate their functions to more capable hands so that they can concentrate on more important tasks, because managing one or more floors can be a very overwhelming and stressful task.
The real estate agents of Geräh Real Estate Partners take care of:
- Address doubts and incidents. It is usual for tenants to have many questions about the apartment in question, there are some who ask few questions, but there are other tenants who will even ask you how to open a blind. What is true is that you will have regular incidents: how the hot water works, how the heating works, if a lamp breaks, who is responsible for repairing it, etc. And it is very common that the owner cannot attend to everything in a timely manner with the attention that it requires, something that a professional real estate agency will gladly do.
- Address problems as soon as possible. Problems always arise and the real estate agency will take care of solving those problems, such as small repairs, for example, or reporting and following up on an insurance claim.
- Solve legal conflicts such as non-payment of rent.
Alternatives to save your money
At Geräh Real Estate Partners we understand that the rates of many real estate agencies in Madrid and other parts of Spain may seem abusive. For this reason, we offer our clients our comprehensive rental management service with guaranteed income at a very competitive price. We will give you much more value than the price of the service. If you try us, you will be so satisfied that you will repeat every year, as all our clients continue to do for more than 6 years.
How does it work? Very simple. We ensure the payment of the rent for your apartment, whether the tenant pays or not, and we take care of all the procedures and incidents, including the search for solvent tenants. You can enjoy our rates that range from 5% of the rent + VAT up to 6.5%, the one that best suits your pocket.
Ensuring the payment of your rent obliges the real estate agency, not only to take care of your property, but also to maintain a close relationship with your flat.
If you have a property or apartment in Madrid and you want to rent it, meet our Property Management service can do for you.