Study shows ‘boom’ in rental market agencies, warning they generate ‘more discrimination’
63% of tenants who rent through agencies have seen price increases beyond levels permitted for inflation
A new report from the Urban Research Institute of Barcelona (IDRA) warns that there is a "boom" of real estate companies operating in the Catalan capital's rental market leading to more "discrimination" of tenants.
These are some of the main conclusions from their study 'The impact of real estate companies on the rental market', presented on Wednesday and carried out in collaboration with universities and research centers.
The report, which analyzes the phenomenon in Barcelona and Madrid, points out how 62.8% of renters who deal with agencies or other third parties, rather than owners directly, have suffered price increases beyond the scope legally permitted by the changes in inflation in the last five years, compared with 43.6% of renters who directly deal with the owner.
As explained by Jaime Palomera, a researcher at IDRA, "there is a boom in real estate" in the rental market which is being felt strongest in Barcelona compared with the rest of Spain’s major cities.
According to Palomera, the second main conclusion is that "contrary to what is often said, this professionalization of the market has not improved the relations between the different actors, but has worsened them."
The study says that "real estate companies manage an increasingly larger part of the rental market." In Barcelona, they take part in three out of every four rentals, and their presence is increasing.
Households with contracts mediated by a real estate agency "tend to suffer more problems" in all the variables analyzed: discrimination in access, dissatisfaction, problems with the owner, price increases, residential instability, collection of fees, and opacity and misinformation.
Discrimination in access
According to the IDRA study, 46.5% of people who look for a flat through real estate companies have suffered some kind of discrimination, compared to 37.7% of those who have looked for it without the participation of an agency. The most common discrimination is employment status, which affects 35% of rentals in Barcelona and Madrid.
The payment of fees has also increased in line with the increased presence of real estate agencies in the market. In the case of those who have lived in the home for more than 5 years, 29.8% paid fees; for people who have lived there for less than 5 years, the figure more than doubled, up to 64.2%.
More dissatisfaction
The research also concludes that the level of dissatisfaction with housing is greater when real estate companies are in the equation. Some 64.9% of tenants with agency mediation show some dissatisfaction, compared to 53.4% who have direct dealings with the property owner or manager.
The main problems with the property are lack of repairs, illegal rent increases, charging fees beyond the rent, lack of maintenance of common areas, and pressure and threats to leave the home.
An example of this dissatisfaction is that up to 66.9% of tenants with real estate brokerage in Barcelona intend to change their home, compared to 57.7% of those who deal directly.