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‘Don’t leave your brain on the plane to Spain’

In this week's instalment of My Spanish Career, The Local talks to real estate agent Graham Hunt about surviving Spain's property crisis, why the country's new home rental law is so confusing and whether Spaniards really lack an entrepreneurial spirit.

'Don't leave your brain on the plane to Spain'
Hunt has set up numerous Spanish businesses in real estate, communications and website development. He is currently juggling five projects, two businesses, three blogs and fifty-five web domains.

How did you end up coming to Spain?

I'm originally from just outside Liverpool but I've lived in Spain for half of my life now. I came as a student and I never left.

How did you end up working in Spain’s property market?

I bought a house in Valencia some years ago and I was shocked by the service offered by the local real estate agents.

It was when I helped a British friend choose a house here that I realized there were very few English speaking estate agents who could cater to the needs and desires of foreign property buyers.

There was a gap in the market as Spanish estate agents were only focusing on national buyers.

So I went about setting up my own business, Valencia-Property, which proved a success until Spain's housing bubble burst.

How were you affected?

We went from 55 sales in 2005 to 8 in 2006. The next year was even worse — three sales.

Our nine company employees had to leave because there was simply no business. I found myself discouraging potential buyers because prices were simply too high at the time.

How did you weather the storm?

I suffered a sports injury which kept me housebound for some time. I made the most of that time to teach myself internet marketing as a way of helping to get the business back afloat.

I also started uploading videos in which I give prospective buyers 100 tips on purchasing a property in Spain.

They've been invaluable in building a relationship with buyers prior to coming to Spain and viewing the properties they’re interested in.

We’ve been doubling sales for the past four years.

Are Brits still the main foreign property buyers in Spain?

They are, but UK sales have only recently started picking up again. I've been selling more and more properties to Chinese and Russian buyers but also Americans, Swedes and other nationalities.

What’s your view on the new law which will potentially grant residency to non-EU citizens who buy a property in Spain worth over half a million euros? Will it help rescue Spain’s ailing property market?

Contrary to what most people think, I would have set the bar at €160,000 like the government had initially planned.

I mean, who buys a second home in another continent for half a million euros apart from criminals? Not many people I can assure you.

Then there’s the fact that the vast majority of Spain’s two million empty properties are not going for that price.

It won’t make a difference. You only have to look at the number of sales of €500,000 homes by non-EU citizens bought last year to realize that.

As someone who’s a self-made businessman in Spain, would you be able to tell our readers if there is a lack of entrepreneurship here as is often claimed?

Not anymore there isn't. The days when the Spanish would aspire to work in the civil service as a means of living a comfortable life are long gone. There are a growing number of people who are coming up with ingenious ideas to beat the crisis.

The problem is having to pay €260 a month to be an autonomo, or self-employed. It strangles a company at birth.

I've helped plenty of young Spaniards with great ideas set up businesses in the US and the UK. It was always with ease because of the lack of red tape.

What do you think of the government's plan to stop homeowners from renting out their properties to tourists?

There's a lot of confusion surrounding the matter because decision powers have been devolved to each individual region. There are even different sets of rules between different Canary Islands!

So for example in the island of Fuerteventura, you’re not allowed to use the word "holiday" to advertise your property, but you can do otherwise.

In the region of Andalusia you have to own three properties before you can register any of them for rental.

The government sees it as a way of cracking down on tax evasion but they haven’t even taken into consideration that only 30 percent of tourists coming to Spain stay in hotels.

It could have a profound effect on tourism and not the one they're after.

What are your main tips for foreigners looking to buy a home in Spain?

Again, I offer a whole range of advice on YouTube but if I had to round it up I'd say top priority is to do your homework before coming. Don’t leave your brain on the plane.

There are some brilliant deals on the market now that house prices have dropped by 40 percent but you still have to plan ahead if you don’t want to get caught out.

I always advise people to get an independent lawyer who speaks both Spanish and your mother tongue to ensure he will represent your interests and explain everything clearly.

How about tips for expats looking to work as real estate agents in Spain?

Thirteen of my ex clients decided to pursue a career in property in Spain after meeting me, but after the crisis only one was left.

It’s not an easy way to make money but it’s nigh on impossible if you don’t speak fluent Spanish or gain inside knowledge.

You can’t leave it up to the lawyer to inform you of what’s going on with a project or deal.

You have to keep your ear to the ground at all times.

Would you say now is the right time to start a new life in Spain?

I've always said that if you've got work and money, Spain is a great place to live. Then again, you can’t expect to be given a job so you have to set up your own business and give it time.

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RENTING

The rules and small print for a rental contract for a room in Spain

Renting a room in Spain can often be easier and cheaper than trying to rent a whole apartment or house for yourself, but there are still several things you need to look out for in your rental contract and small print clauses you need to be aware of.

The rules and small print for a rental contract for a room in Spain

Sharing a flat in Spain may of course not be your first choice; in 55 percent of cases people here do so because they can’t afford their own place. 

Renting a room is now almost 10 percent more expensive than a year ago, according to recent data published by property portal Idealista, costing almost double in 2024 than it did nine years ago.

The national average for renting a room is now €488 per month.

If you’ve come here to be a student or to learn Spanish though, renting a room can be excellent choice.

Due to Spain’s housing crisis and financial constraints, renting a room is no longer only an option for young people in Spain. In fact, in 2022 Idealista found that the average of a person sharing a home in Spain was 34. 

READ ALSO: Renting a room in Spain costs 90% more than in 2015

Renting a room is increasingly popular in Spain, especially in those cities where rent is very high, such as in regional capitals. 

While your contract for renting a room may not be extensive as renting a whole property, it’s still very important that you have one to make sure that you’re protected.

A room rental agreement not only ensures that both parties are clear about their rights and responsibilities, but also avoids potential misunderstandings and conflicts.

Typically, when you are renting una habitación, your room will be your space, but you will have shared access common areas such as the kitchen, living room and bathroom. 

READ ALSO – Aval: How to get a bank guarantee to rent a property in Spain

Factors to keep in mind when renting a room in Spain:

Tenants do not have the right to continue to live in the home beyond what is stipulated in the contract, so your landlord will have greater control over the property.

It is important that the room rental contract specifies the purpose of renting the room and how long it’s for. Generally, this type of rental is regulated by the Civil Code, but it could also be subject to the Urban Lease Law (LAU), even though the existence of this type of lease is not specified.

The room should include basic furniture, and the landlord is responsible for paying the bills initially, although they may be included in the rent.

There’s no minimum legal content that room rental contracts must contain, and it is not even mandatory for it to be in writing. But it is still advisable to get one in writing in order avoid future problems.

READ ALSO: The pros and cons of signing a temporary rental contract in Spain 

According to property website Idealista, room rental contracts should contain these following elements:

  • The duration of the contract.
  • A statement saying exactly which room is being rented out.
  • The rental price, as well as the payment method with which the tenant will pay the rent and when it will be due each month.
  • The services that are included, such as the use of the kitchen and being able to connect to the internet.
  • It’s also important that there’s a clause to say how payments should be divided in case of any unforeseen circumstances.
  • It must be indicated if subletting the room is allowed or not. As stated in the Civil Code this may be possible if your contract doesn’t specifically state that you can’t.
  • If the property is rented by several people, the contract must be formalised between all tenants through a single rental contract and tenants will appear in the same contract.

READ ALSO: Is subletting legal in Spain? 

How to tell if a room rental contract is legal in Spain

For a room rental agreement to be legal, it must contain the following information:

  • Full names, DNI or NIE number, address and telephone number of both the landlord and the tenant.
  • Specify the exact address of the home, the rented room and the common areas the tenant has access to.
  • The start and end date of the contract.
  • The amount of the deposit and the return conditions. It is not mandatory to provide a deposit, but landlords can request it.
  • The monthly rent, the payment method and how to make the payment.
  • It must state who is responsible for the necessary works and repairs in the home.
  • A clause must be included stating who responsible for community expenses, water, electricity, gas, etc.
  • The text must state the conditions for termination of the contract, such as non-payment of rent or failure to comply with the rules or the landlord selling the property.
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