Renting rooms exceeds the traditional market in profitability and price balance

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Sharing an apartment has become a solution to the escalation of prices in major Spanish cities. The owners see how the risk of default decreases when having more than one tenant.

Renting rooms is more profitable than renting the whole house. The rental market in Spain is evolving and renting a room with three or more bedrooms is more profitable than renting it in 90% of the neighborhoods of Madrid and Barcelona, ​​according to a study presented by Badi and the consultant Savills Aguirre Newman in Simapro.

The report states that leasing by rooms "presents more interesting returns to owners and investors compared to the traditional residential market." Diversifying the rent with more than one tenant allows the owners to have less risk of default and allows higher occupancy rates.

In addition, "there is more balance between the prices requested by the offer and the prices that the demand is willing to pay," the report states. A particularly relevant situation in the center of large cities, where the escalation of prices makes it difficult to lease a whole house.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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