The owners rely on residential leasing as the formula to make their savings profitable. A business that 2.23 million landlords resort to who decide to rent their home.
The total number of landlords has multiplied in Spain during the last ten years.
In spite of the lack of information, occasionally by an unprofessionalized business, the Tax Agency of the growth account that takes out yield to a real estate by leasing it.
And, between 2015 and 2017, residential rental lives a new golden age. Overcoming the fall caused by the years of the real estate crisis (2008-2014).
With the current increase in demand and three years of positive income, rents are still an interesting alternative for many savers.
55% more landlords in Spain
In the country of ownership, landlords continue to do business.
A recent article published in Cinco Días puts figures to the incredible increase in the number of multi-owners who choose to rent a house or more.
Despite the lack of data, caused by the lack of professionalism, the rental market continues to grow. One of the sources of information that ensures this is the Housing and Land Observatory, coordinated by the Ministry of Development.
Although the most clarifying data come from the Income Tax Statistics, prepared by the Tax Agency. In it taxpayers who declare returns on real estate capital are accounted for, as long as they do not constitute an economic activity.
In that sense, the so-called rentistas amounted to 2,237,463 taxpayers out of the total of 19.3 million who submitted the IRPF 2015 declaration. Last year available.
This is 7% more than landlords in just one year (IRPF 2014). A statistic that surely will have been increasing in 2016 and 2017.
The crisis has highlighted the rent
The recent evolution of the residential market has boosted the number of homes for rent. Not only in the years of the crisis, but also in the real estate boom.
According to the Tax Agency, since the bursting of the bubble, taxpayers who claimed to have rental housing have gone from 1.64 million (2008) to 2.23 million (2015). 36.15% more.
While, relocating a decade ago, the number of landlords has skyrocketed by close to 800,000. From 1.44 million (2006) to more than two million today. 54.5% more.
And the reasons, surprising as they may seem, are closely linked to the real estate crisis.
Esto supone un 7% más de caseros en solo un año (IRPF 2014). Una estadística que seguramente habrá ido en aumento en los ejercicios 2016 y 2017.
Demand and profitability attract the landlord
In the first place, the increase in the number of owners who chose to rent their property was due to the lack of credit caused by the crisis.
With no exit for their home, many chose to put it on rent to obtain some type of income.
A situation that, after the crisis, has changed enormously. Being now when the rent goes from being a plan B to the main investment alternative.
Motivated by the revaluation of real estate, the increase in demand and the high profitability of renting a home. A gross profit that keeps growing. And the Bank of Spain already places between 4.2% (annual return per rental) and 10.9% (capital gains per sale).
All this at a time when prices and demand are far from slowing down their escalation.
Reaching generalize the cases in which a landlord opts in turn to be a tenant. No longer for lack of confidence in the market, but by own choice. Or why banks still do not offer optimal conditions.
Perspectives of the rental of housing
Given this panorama, it is worth studying the market and listening to the experts.
Revenues can still grow:
According to the different portals, the rental price has accumulated several years of falls. If we start from the average income in recent years, rents have gone from € 9,172 / year (2008) to € 7,513 / year (2015). A fall of 18% that leaves a long way to future rent increases.
The phenomenon has been increasing:
After a period of rents downward, between 2008 and 2014, in 2015 there was a change in trend. Since then, rental prices accumulate three years in positive. Arriving to register double-digit increases at the end of 2017. A fact that not only indicates increase in income but also is accompanied by a greater number of lessors.
Positive prospects in cities:
Looking ahead to 2018, experts and portals point to a moderation in rent increases. Because the urban neighborhoods with the greatest demand begin to deplete the available stock. For this reason, the relay must come hand in hand with other nuclei of residential interest.
