Laurence Dollimore
DIGITAL nomads, wealthy British retirees and a fear of squatters are causing a rental crisis on parts of the Costa del Sol, industry leaders have warned.
Anyone looking to rent long term in Marbella, for example, will struggle to find anything for less than €1,000 per month.
READ MORE: Rent strike movement spreads across Spain
Given the minimum interprofessional wage is currently €1,134, finding a home to rent is a pipe dream for the average worker.
It means most people have to rent rooms in shared flats, but even those are starting at around €400 per month, taking a sizable chunk out of people’s earnings.
It comes amid growing protests against the rental crisis that is affecting many cities across Spain (one recent march pictured above).
Marbella Real Estate Investments told Malaga Hoy that homes from €1,000 are typically studios, while two and three beds start from €1,400 and around €3,000 for four bedrooms.
The firm said an imbalance between supply and demand is being caused by a ‘fear that apartments will be destroyed’ and that tenants ‘will not pay or that they will be squatted’, as well as ‘holiday rentals’ like Airbnb flats.
“People dedicate their homes to tourist rentals because it gives more guarantees to the owner, not only on an economic level,” it said.
The company said ‘wealthy people’ who work from home and foreign retirees are also willing and able to pay more.
“If people from outside have the capacity to pay, those of us who are from here cannot compete,” it said.
The most affected are seasonal workers and teachers who cannot afford the rent, the company said.
Additionally, tenants are facing a lot of requirements when looking for homes to rent, including two months’ deposit or more, despite it being illegal.
Many landlords do not want families with children because they can be classed as ‘vulnerable’ if they fail to pay rent, giving them rights to stay without paying rent.
Many properties are only available during the off season or over winter, so they can be rented to tourists during the summer.
One freelance estate agent told the Olive Press: “There is no incentive to rent long term when you can make much more money from renting to holidaymakers.
“When people squat your home they are incredibly protected by the law and you can be dragged into a years-long legal process to get them kicked out, all the while you have to pay for their electricity and water while getting no rent payments.
“I know one expat couple whose Marbella home was squatted for years by a man who got a court order that classed him as vulnerable because he was an alcoholic, all the while driving around in a luxury car, it’s ridiculous.”
The near future for renters does not look good along the Costa del Sol, either.
“There are a lot of people looking and no rentals,” another real estate agency told Malaga Hoy.
“There are no new construction licences, and those that are given are for projects aimed at foreigners and not for less than €250,000.
“There is nothing, not in Marbella, San Pedro nor Estepona.”
Correct. It’s fear of long term occupiers with rent increase restrictions that resulted in the shortage. These protections have been tried many times worldwide and always make matters worse. Eventually they are removed, more long term become available as they are less hassle for the owners, and the market stabilises, but at a higher rent level than before the restrictions started.