Should I rent my Valencia Apartment?” Advantages that will cast away your doubts
Surely, more than once you have asked yourself the uneasy question: “Is it better to sell or rent your Valencia property?” The answer must always be linked to 3 factors:
– Your economic strategy as an owner or investor. Renting your Valencia property not is always the only options.
– Your current liquidity needs.
– The socio-economic situation in which we find ourselves.
With respect to the first two points, this is something that only you know and which we will not go into today, but as important as these, is the third factor.
How does the current situation affect renting my apartment?
The National Institute of Statistics has been noticing a slowdown in sales and property prices for some time now. This slowdown in sales of apartments and houses has been increased by the Covid-19 health crisis.
The paralysis of the country for more than two months, has left a significant effect in the Spanish economy. Thousands of citizens have seen their income, either reduced or even lost, causing an immediate need for liquidity. This need has undoubtedly led to an increase in the supply of homes for sale, causing the price of these to fall.
On the other hand, the crisis will leave a second consequence on the real estate market, and that is the increase in demand for rent. Due to the decrease in income of the citizens, most of them will not have capital to buy, thus increasing the need for renting.
How does this situation affect the decision to rent my apartment?
This socio-economic situation has a great impact on the decision to rent your apartment.
If you have a quick need for liquidity, this situation will allow you to sell quickly. Unfortunately, it is likely to be at a lower price than you would have received if the real estate market was stable.
However, if you have a property to rent, it is time to make a profit easily by meeting the increased demand.
Renting has always been a good option, and these are the great advantages you can get if you decide to do it now:
What are the main advantages of renting your Valencia property?
1. Regular income renting your apartment
The first advantage of renting your Valencia property is to get a regular return. To achieve this you must take appropriate steps , in this way, your income will increase monthly in a safe way.
2. Low Valencia property management cost
The costs of buying and selling properties, and taxes for these operations are very expensive. In contrast, managing the rental of a home is economical. Rent management, bond deposit, search for tenants, housing arrangements, availability for daily management, etc. is something you can do without help by making extra effort. Sometimes this pile of work creates a worrying impression in the landlord’s mind such as: “renting my flat is a lot of work”. However, there are companies such as VPM that take care of any inconvenient procedure for a low cost
Would you like to know how we can manage the rental of your property and how much it will cost?
3. Price Behavior in Valencia property market
Rent prices have gone up. The free rental market has been supported by government promotion of public housing, so that families with lower incomes are guaranteed access to decent housing. This has had favorable consequences for tenants. The rise in rental prices over the last two years has doubled rental income in some cities such as Valencia.
4. Safe investment
Real estate investment is considered to be one of the safest. Under any macroeconomic circumstance, housing is a tangible asset that can be made profitable with different strategies. In particular, renting offers different varieties of exploitation that make it a safe investment.
As a conclusion to the uneasy question “Should I rent my apartment?” the answer is, in most cases, yes.
Selling your apartment can be a good option if the price you demand is quickly accepted by the buyer. With the growing offer in the market, it is convenient to project a period of at least 6-12 months so that, with the correct marketing, your apartment can be sold. However, while you wait for the sale to be executed, you have no income, whereas expenses continue.
Meanwhile, renting will bring you a regular income more immediately and a decrease in costs. The sale option can wait until the economic indicators are more favorable.
In addition, renting your apartment will allow you to continue maintaining the property, and thus exploit it to generate income while maintaining your property. Once you sell the apartment, you will no longer earn with that asset, because it no longer belongs to you.
We hope that this analysis has been useful to you, and that you can reach the same conclusion as us: «Yes, it is time to rent my apartment».
Would you like to rent your flat without worries?