Tips to invest in housing to rent

Renting a property allows you to earn extra income on a regular basis. It is precisely because of this regularity of income together with the greater long-term profitability that this investment mode entails. Even so, the profitability we can opt for by investing in a property to rent it out does not only depend on the evolution of the real estate market in a specific area. Our job as a real estate agency is to maximize the profitability for our clients, an objective that we can only achieve by being very clear about the impact of each of the following factors.

Firstly, the deposit to be paid cannot in any case exceed the equivalent of two months' rent. By law, the deposit to be paid is the equivalent of one month's rent, but it is also permitted to ask for an additional guarantee, where the sum may not exceed two months. The fixed costs that you will have to bear as a landlord are very important when it comes to calculating the dirty profitability that you will be able to opt for when investing in a property to rent it out, such as the community fees, the IBI, the rubbish tax and the property insurance.

You will also have to check if in the area where your property is located there is any kind of rent regulation. In Catalonia, for example, there is a price containment law that affects 59 municipalities in the community. This regulation establishes a maximum price per metre per square in the affected areas. During the time that the tenant stays in the property, the landlord cannot raise the rental price.

Another thing to bear in mind when investing in a property to rent it out is that there is always the possibility of selling a rented property, but the buyer will have to subrogate himself to the position of the new landlord and maintain the rent with the same conditions agreed before. In addition, the landlord is obliged to notify the tenant of the intention to sell the property and allow him thirty days to exercise his right to buy it under the same conditions as a third party.