Posts in category: Articles about real estate advice

One of those questions that everyone asks themselves at some point in their lives is whether it is better to buy or rent. Today, with house prices constantly changing and rental supply very tight, the decision is not an easy one. 

Official data indicate that house prices have risen in recent years, as has the cost of renting, especially in some cities. Choosing one option or another depends on many factors: job stability, savings capacity and the objectives pursued with the investment are the main ones. Let’s analyse the advantages and disadvantages of buying and renting a home to help you make the best decision.

Advantages of buying a home

• Equity building: Buying a home means that the monthly mortgage payments become an investment, rather than a non-return expense like renting. Over time, the home can increase in value, allowing you to recoup your investment and even generate a profit if you sell. In addition, home ownership provides greater financial stability in the future, avoiding the risk of rent increases. However, it is also important to bear in mind that buying a home requires a large initial investment and entails additional costs such as taxes, maintenance and possible mortgage interest.
  
• Stability and security: Owning a home guarantees that no one can force you to move, except in extraordinary situations. Not being subject to a landlord’s decisions provides long-term peace of mind and allows you to settle down without the uncertainty of having to look for a new home every few years.

In this case, the main disadvantage is that stability also means less flexibility to change residence in case of job opportunities or personal changes.

• Additional rental income: If at some point you decide not to live in your property, you can rent it out and generate passive income. Becoming a landlord offers the possibility of a return on investment through renting, which is particularly attractive in high-demand areas. In addition, there are opportunities like the one offered by BizTrip to property owners, which help transform your property into a profitable and sustainable source of income by offering flexible rental solutions for your property in the medium and short term. 
  
• Freedom to customize: Owners can make renovations, structural changes and decorations without relying on the approval of a landlord. This freedom allows the home to be tailored to personal needs and enhances its long-term value. 
  
• Tax benefits: There are various grants and tax deductions in the Personal Income Tax IRPF and reductions in the Property Transfer Tax (PTT) in some autonomous communities. In addition, in certain cases, it is possible to deduct the interest on the mortgage, which represents an additional saving.

• Long-term investment: Owning a home can eliminate the need to pay rent in the future, providing significant savings in retirement. Buying a home in a good location can also represent a profitable investment over the years. In this regard, it should be borne in mind that this is not an exact science and that not all homes appreciate in value.

Advantages of renting a property

• lexibility and mobility: Renting allows you to change residence more easily, which is ideal for people with jobs that require geographical mobility or those who wish to explore different areas before settling down.

• Lower initial investment: It does not require a large amount of savings, unlike buying, where 20-30% of the value of the property is needed for the down payment and additional expenses. This makes it easier to access housing without compromising the long-term budget. It is true, however, that although the initial investment is lower, in the long term, renting does not generate equity or financial return. 

• No maintenance costs: Repairs and maintenance costs are generally borne by the landlord. This means that the tenant does not have to worry about unexpected expenses arising from structural breakdowns or improvements to the property.

• Renting by the month, a convenient and flexible option: More and more people are opting for temporary renting, which allows access to a home without long-term commitments. This option is ideal for professionals on the move or in a process of work or personal transition. It also offers the possibility of trying out different locations before making a final decision on the purchase of a home. BizTrip offers monthly rental apartments that ensure tenants feel at home from day one.
  
• No risk of devaluation: Tenants are not exposed to fluctuations in the real estate market. If property values fall, they are not directly affected, while landlords may face losses if they need to sell at a bad time. However, while the risks of devaluation are avoided, the benefits of a possible revaluation of the property cannot be reaped either.
  
• Access to exclusive areas: Renting can allow you to live in neighbourhoods where buying a home would be unaffordable. This offers the possibility of enjoying better services, transport and amenities without making a significant investment.

The truth is that the decision between buying or renting depends on each person’s personal circumstances and financial goals. If you are looking for stability and a long-term investment, buying may be the best choice. If you prefer flexibility, are subject to mobility and are looking for less financial commitment, renting is the ideal alternative.

Are you looking for a flat to rent and don’t want any surprises? Undoubtedly, price and location are the main aspects, but there are many more that you should also take into account. Details such as the conditions of the contract, the additional costs or even the current regulations can influence your day-to-day life. We tell you everything you should check before signing so that you can make the best decision.

Things to consider before renting a home

Before deciding on a rental flat, it is advisable to evaluate a number of factors. Let’s take a look at them:

• Budget: Determine how much you can afford to spend on rent without compromising your finances. Experts suggest that rent should not exceed 30-35% of your monthly income. Also take into account additional expenses such as utilities, community fees and taxes. 

• Location: Choose an area that suits your daily needs, considering proximity to work, public transport, educational facilities and basic services. Research the safety and atmosphere of the neighbourhood. 

• Condition of the property: Inspect the property in detail. Check the functioning of electrical installations, plumbing, heating and electrical appliances. If the property is furnished, make sure that the furniture is in good condition.

• Conditions of the contract: Read all the clauses carefully. Pay attention to the length of the contract, renewal policies, conditions for terminating the contract, possible penalties and any restrictions, such as a ban on pets, for example.

Rent: what does the landlord pay and what does the tenant pay?

Financial responsibilities should be clear to both parties to avoid misunderstandings. You should be aware of what the regulations dictate with regard to the frequent expenses of a rented flat. 

Owner’s costs:

• Property tax (PT) : This is payable by the owner, unless otherwise agreed in the contract. 
• Community charges: The landlord bears these costs, unless it is agreed that the tenant will cover them. 

• Insurance: The owner is usually responsible for the insurance relating to the structure of the dwelling.

Tenant’s costs:

• Utilities: The tenant is responsible for the costs of water, electricity, gas and internet.

• Minor maintenance: Small repairs arising from everyday use, such as changing a light bulb or fixing a dripping tap.

Rent: who pays for repairs?

The Law on Urban Leases (LAU) includes different specific aspects related to renting. 

In relation to the payment of repairs, it is the landlord’s responsibility to carry out all repairs that are necessary to maintain the property in habitable conditions, except if the deterioration is attributable to the tenant.

On the other hand, the tenant is responsible for minor repairs arising from wear and tear due to ordinary use of the property.

For example, if the boiler stops working due to age, the landlord must repair or replace it. However, if a shutter breaks due to misuse, the tenant is responsible for repairing it.

Rent protection

In 2025, the updated of Ley por el Derecho a la Vivienda and related regulations have implemented measures to protect both tenants and landlords:

• Limiting rent increases: In areas declared as stressed, limits are set on rent increases to avoid disproportionate increases. 

• Duration of contracts: The minimum duration of contracts is five years if the lessor is a natural person and seven years if the lessor is a legal entity, with the possibility of automatic extensions of up to three additional years.

• Reference index: A new index has been created by the National Statistics Institute (NSI) for the annual update of lease contracts, replacing the CPI.

How much deposit is required by law when renting a flat?

By law, in Spain, the tenant is required to pay a deposit equivalent to one month’s rent for regular housing contracts. In temporary or seasonal rentals, the landlord may request a different amount as a guarantee. 

According to the Ley de Arrendamientos Urbanos, it is compulsory for the tenant to provide a deposit equivalent to one month’s rent in the case of rental of dwellings and two months’ rent in the case of rental for use other than a dwelling. In addition, any type of additional guarantee can be agreed.

Tips before renting a home

To avoid inconveniences and ensure that your rental experience is a satisfactory one, we recommend that you follow these 10 tips:

• Read the rental contract carefully: Make sure you understand all the clauses before you sign. 

• Check the condition of the property: Carry out a detailed inspection and document any damage. 

• Confirm any additional costs: Ask which costs are included in the rent and which you will be responsible for. 

• Make sure the landlord’s payments are up to date: Check that the flat has no associated debts. 

• Ask about the termination policy: Know the conditions in case you need to end the contract early. 

• Keep copies of all documentation: Have the contract, payment receipts and any communication with the landlord at hand.

• Check the legality of the contract: Make sure that everything in writing complies with the Law on Urban Leases. 

• Ask for a review of the electrical and gas installation: This can avoid safety problems in the future. 

• Clarify the renewal conditions: Find out how the renewal of the contract will be handled and check that it will be carried out in accordance with the law. 

• Ask about possible renovations: If you want to paint, change furniture or make modifications, make sure that the landlord allows this and that this is reflected in the contract.

Can a tenant terminate a lease early?

Yes, but it is important to check the termination clause of the contract. In most cases, the tenant must give one month’s notice and, if the contract stipulates, pay compensation proportional to the time remaining.

Can a landlord terminate the lease early?

The landlord can only terminate the rental contract early in specific situations, such as non-payment of rent or the need to use the flat for own use. In these cases, at least two months’ notice must be given.