Madrid's Housing Market Exposed: TikTok Creator Reveals Abusive Rental Terms

A recent trend in Madrid's housing market has left many young people struggling to find a place to live. Instead of worrying about how much they can afford to pay each month, they face an even more daunting question: how much money do they need to enter the market in the first place? With ever-increasing rents, deposits, and additional guarantees or abusive clauses, accessing a home can be a significant barrier, especially for those who do not have substantial savings.

One content creator, Noel Horcajada, has shared his experience with a vulture fund seeking a rental property in Madrid. The fund demanded a total entry fee of €13,500 before he could even step into the apartment. Horcajada broke down the costs behind this initial outlay, revealing that the monthly rent was €1,500, plus €3,000 in two months of deposit, and a €9,000 bank guarantee equivalent to six months of rent.

The property in question, a two-bedroom apartment with a large terrace, was advertised at €1,500 per month. Horcajada described this as an "absurdly low" price, considering the location and condition of the property. However, he was not prepared for the additional clauses.

The contract required a permanence of eight years, with a penalty of three months' rent (€4,500) for anyone who left the property before three years. Horcajada emphasized the severity of this clause, stating that it would be equivalent to paying €4,500 if he and his partner found a better option and wanted to leave the property after a year and a half.

These conditions have no legal basis. The Urban Leasing Act establishes that the tenant can resolve the contract from the sixth month, providing a month's notice. Requiring someone to stay for eight years or penalizing them for not fulfilling three years has no legal backing.

Horcajada also clarified that the property does not belong to an individual but to a vulture fund that has purchased three properties in the same building and is renting them out. This distinction has significant legal implications, as the normative law establishes that when the landlord is a legal entity, the obligatory contract extension is seven years, not five. The fund's demands for an eight-year permanence and penalty for early departure are, therefore, directly abusive clauses.

The economist Santiago Carbó has warned about "significant increases" in property prices and explained how the scarcity and high costs of rentals and mortgages consume the increases in family salaries.

Horcajada emphasized that the situation is not about a private individual but a vulture fund that buys properties, rents them out above their value, and adds abusive conditions to extreme levels. He also warned in his videos that many inquilinos are unaware of their rights and may sign contracts with abusive clauses due to fear.

He highlighted that the two months of deposit are the maximum legal amount, and no one is obligated to pay more. The agency commission is not an obligation for the inquilino, and the payment guarantee, which often equals a month's rent, is also not required.

Horcajada's experience and warnings serve as a reminder of the complexities and challenges of the Madrid housing market. As the city continues to grapple with the issue of affordable housing, it is essential to shed light on the abusive practices that can make it difficult for people to find a place to live.

### The Reality of Madrid's Housing Market

The situation in Madrid's housing market is a stark reminder of the need for greater regulation and protection for tenants. The city's housing market is characterized by high rents, deposits, and additional guarantees or abusive clauses, making it challenging for people to find a place to live.

### The Impact on Tenants

The impact of these abusive practices on tenants can be severe. They may be forced to pay exorbitant amounts of money to enter the market, only to find themselves trapped in contracts with clauses that are not in their favor. The lack of awareness about their rights and the fear of not being able to find another place to live can lead to tenants signing contracts with abusive clauses.

### The Need for Change

The situation in Madrid's housing market requires a change in the way we approach renting and buying properties. There is a need for greater regulation and protection for tenants, as well as education and awareness about their rights. By working together, we can create a more equitable and sustainable housing market that benefits everyone.

### Conclusion

The experience of Noel Horcajada and the warnings he has shared serve as a reminder of the complexities and challenges of the Madrid housing market. It is essential to shed light on the abusive practices that can make it difficult for people to find a place to live. By working together, we can create a more equitable and sustainable housing market that benefits everyone.