The €13,500 you need to move into a flat in Madrid
Moving into a two-bedroom flat in Madrid costs €13,500 between the deposit and the bank guarantee. The law, demand and construction are at the centre of the crisis.
English · Original discussion in Spanish · Published
Moving into a flat in Madrid costs €13,500 before the first monthly payment
The most expensive part of renting in Madrid is no longer the monthly rent. It's the key: €13,500 between the deposit and the bank guarantee for a two-bedroom flat. A young man trying to move out on his own shared the figure this week; it captures the scale of a market where access has become a liquidity filter.
The upfront cost that rules out most people
The legal deposit is two months' rent. But landlords add a bank guarantee as extra security against a tenant who, under current rules, is practically impossible to evict. The bank holds an amount that is refunded at the end of the contract, if it is refunded at all. Adding the first month's rent and agency fees, the upfront amount skyrockets.
The question is whether that protection is proportionate. Some go further and argue that the required guarantee is too low: with a law that protects the occupier so heavily, it's surprising the landlord asks for so little. Others see the problem as the opposite: not the guarantee, but the pressure of ever-growing demand.
More tenants, less construction and the flight of €3,000 salaries
Since 2022, 1,200,000 new residents have arrived in Spain, according to the figures circulating in the analysis of the crisis. Construction can't keep up: there is a labour shortage and, more recently, electricity supply problems have been added in new urban developments. The result is that renting in big cities is getting more expensive for everyone, including in the form of upfront requirements.
Faced with this scenario, an option gaining ground is leaving. Giving up €3,000 salaries and moving out of Madrid has become a reasonable alternative for many. The question that remains: if it takes €13,500 upfront just to move in, how many people can afford to keep trying?
The most expensive part of renting in Madrid is no longer the monthly rent. It's the key: €13,500 between the deposit and the bank guarantee for a two-bedroom flat. A young man trying to move out on his own shared the figure this week; it captures the scale of a market where access has become a liquidity filter.
The upfront cost that rules out most people
The legal deposit is two months' rent. But landlords add a bank guarantee as extra security against a tenant who, under current rules, is practically impossible to evict. The bank holds an amount that is refunded at the end of the contract, if it is refunded at all. Adding the first month's rent and agency fees, the upfront amount skyrockets.
The question is whether that protection is proportionate. Some go further and argue that the required guarantee is too low: with a law that protects the occupier so heavily, it's surprising the landlord asks for so little. Others see the problem as the opposite: not the guarantee, but the pressure of ever-growing demand.
More tenants, less construction and the flight of €3,000 salaries
Since 2022, 1,200,000 new residents have arrived in Spain, according to the figures circulating in the analysis of the crisis. Construction can't keep up: there is a labour shortage and, more recently, electricity supply problems have been added in new urban developments. The result is that renting in big cities is getting more expensive for everyone, including in the form of upfront requirements.
Faced with this scenario, an option gaining ground is leaving. Giving up €3,000 salaries and moving out of Madrid has become a reasonable alternative for many. The question that remains: if it takes €13,500 upfront just to move in, how many people can afford to keep trying?
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (18 replies).
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