Playing games with the rent

By 15/03/2018

For some time now, the media has been talking about issues related to rent and, as always, from the most negative perspective. No wonder, since it is an issue that when not managed well affects families in the most necessary: ​​housing.

Our company has been concerned with this issue for many years. For years we have contributed ideas to the Administration on how to increase the housing stock, for years we have made policies to convince our patrimonial owners of the need to make 5-year contracts to guarantee a certain stability; we do conferences, meetings, etc.

So now, we can present our data about what happened in our company in 2017 with respect to rent. In 2017, 414 rental contracts were finalized:

  • 188 (45%) => because the period established in the contract was met.
    • 152 (81%) => we have renewed them with an average rent increase of 9%

It must be clarified that for a 3-year standard contract, an increase of 9% in its renewal would mean an annual increase of 3%, well below the current increases in the market.

  • 226 (55%) => because the tenant left before completing the contract years. We think that these data, which surely are reproduced in many companies like ours, are quite good and put in value a normal, stable rental market, with smart and mature owners looking for a normal return and who have no interest in changing of clients if they are compliant.

Different paths follow the housing coming from complex legal situations originated by the “crisis” and the bankruptcy of many promoters and financial entities. In this case, the problems are historical, not wanted by anyone, difficult to solve and that there will be time to normalize.

We continue to work to increase the rental market in our country, which is still in the middle of any European country. For this you need several things:

  1. Political will to facilitate urban transformation and uses to create a sufficient housing stock.
  2. Legislative and legal security, which we do not achieve.
  3. Public-private management.

In this line the next March 20, in the framework of the week of the trade, together with RETAILcat we present the study “What we do with the empty premises of the non-commercial streets?”. To, once again, disseminate the idea / need / possibility of reconverting the city’s premises that will never have commercial use in housing. Maybe someday someone will listen to us.