Mobility forces many workers to travel outside your city for periods of several weeks or months. Hotel accommodation is more expensive and offers less comfort to the traveler. For this reason, the half-stay rental is the favorite option for displaced professionals temporarily, and they have also become an interesting proposal for property owners, as an alternative to traditional rentals and tourist rentals. The proptech Homyspace, born in 2016, has already achieved profitability with its specialized platform in this niche market, and has medium-term rental homes in more than 1,300 locations throughout Spain.
Currently, the company has 2,300 recurring clients in its portfolio: companies that need to temporarily relocate some of their workers, mainly from sectors such as the construction (technicians, engineers, architects, consultants, site managers, photovoltaic or wind energy technicians, operators), manufacturing industries (store managers, area managers, managers and commercial agents) or audiovisual production (technicians, scriptwriters, operators, project managers, production managers). A frequent profile is that of multinational companies from Europe or the United States with a presence in Spain that receive managers and senior managers or personnel in the process of training in our country.
As for the areas with the greatest demand for this type of rental, the areas close to the two large business centers stand out, Madrid and Barcelona, and also in locations close to other cities such as Valencia, Malaga, Zaragoza and Seville. Outside of Spain, they also have properties in countries such as France, Portugal and Germany.
“We are absorbing a strong demand, not only in the main cities but also in secondary cities, even in towns. As we are in more than 1,300 locations throughout the national territory, we cover the demand with an offer that does not exist on any other platform. Our goal is that when a tenant comes to us looking for a rental anywhere in Spain, no matter how remote the destination, they always find the best options available ”, says Ángel Mayoral, CEO of the company.
Effects of the Housing Law on the rental market
“Currently, we are at a key moment for the sector at a political and economic level. With the recent approval of the Housing Law, the demand will continue because there is a real need for rent, but it is very likely that there will be a contraction in the supply of rental properties, which will push prices up and get just what contrary to what was sought: that tenants find it more difficult to find a home. With the legal insecurity that it poses and the uncertainty that revolves around it after the results of the last municipal and regional elections, it is very likely that many owners decide to switch to a half-stay rental, which will give them much less headaches. ”, assures Ángel Mayoral.
The temporary rental of medium stay is regulated by the Urban Leasing Law (specific section of contracts for use other than housing), not by the Housing Law, so it is exempt from the restrictions imposed by the new regulation on owners when setting prices.
According to Homyspace, the price charged for a medium-term rental is, on average, around 35% higher than a long-term rental. Compared to the tourist rental, the price is, on average, 40% lower, taking into account the gross profit, but the expenses derived from management, cleaning, etc. must be taken into account, which can represent a reduction of approximately 20% of gross profit.
For the owner, there are three main advantages that provides the mid-stay rental compared to the long stay: control, flexibility and profitability. You have full availability of the home and you can decide how many months a year you want to rent it. The contracts are renewable, but only if the owner decides, who can also choose a new tenant. And you have total freedom to set the desired price, which may vary depending on the time of year or the duration of the contract.
In relation to tourist rentals, from Homyspace it has been detected that in those autonomous communities where regulation has increased, there has been a flight of owners towards half-stay rentals, in search of security and tranquility for their investment, since They do not need a license to operate within the law, and rental management is less subject to immediacy and, therefore, more comfortable.
