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Frequently Asked Questions
 

FAQs | Peace of Mind Property Management

WHAT DOES A PROPERTY MANAGEMENT EXPERT DO?

At Peace of Mind, as property management experts, we consider ourselves the link between the landlord and the tenant, as the voice of one to the other.

 

Our role is to take care of all matters related with the tenancy (from the slightest maintenance problem to any issues with the building´s community) while representing the landlord´s interests.

Our 360º service offers from the management of secondary residences to dealing with leased properties. This includes solving unforeseen situations, repairs of any kind, cleaning, changing/contracting utilities, interior design projects, small refurbishing works, and more.

Our high-quality service is complemented by advising our clients about the local rental market and help landlords find a suitable tenant. Our experience and knowledge of the Madrid real estate market allows us to understand what´s demanded by tenants, not just suitable leasing prices but also amenities expected nowadays by clients.

Click on this link for a better understanding by reading one of our experiences.

WHAT ARE THE BENEFITS OF HIRING A PROPERTY MANAGEMENT EXPERT?

One of the most important personal benefits of hiring our services is that it allows landlords greater freedom, releasing them from the usual inconvenience of property ownership while we protect their property and increase their yield on investment.

 

As landlord, you will not need to get involved in handling awkward situations with tenants (especially if you live abroad) and since our expertise is to solve any type of problems on a daily basis, we usually understand what is needed.

 

We also offer to our clients the possibility to collect rent payments on their behalf, dealing with occupants’ monthly fees and check in/out deposits. We keep our clients informed by a monthly update accounting communication.

We deal, openly and firmly, with any trades or service professionals required to keep each property in optimum conditions. We coordinate any repairs needed with our team of professionals, from plumbers to painters, and if any of them needs to be present at your property we will be there as long as needed during their visit to ensure that work is carried out smoothly.

IS IT WORTH IT TO HIRE A PROPERTY MANAGEMENT EXPERT?

As a landlord, to deal with tenancy problems and satisfy the frequent demands of your tenants could be a challenge, especially if you live abroad.

 

If this is your case, maybe it´s time for you to consider hiring the expertise of a property manager to make your life easier and free you from these duties.

When you have a dream tenant, self-management is a great option, but when difficult tenancy situations arise, it is a relief to rely on trusted hands, we have an emergencies phone line available 24/7 for any tenancy issues that may arise.

POINTS TO CONSIDER WHEN CHOOSING A PROPERTY MANAGEMENT EXPERT?

 

Word of mouth is always a great way to get to know a reliable and trustworthy expert.

 

At Peace of Mind we are proud of the positive feedback of our clients as this means confidence to new clients.

 

No one better than actual clients to express their experience with our service and their satisfaction with our working standards. Check our google reviews.

WHAT IF I NEED SOMEONE TO LOOK AFTER MY SECOND HOME IN MADRID?

If you love Madrid and own a property for enjoyment PEACE OF MIND is a great choice to look after it.

 

Our services include the coordination of a maintenance cleaning, checking the property on a regular basis and keeping owners informed of any matter related with their property.

 

We will also be more than happy to prepare your home for your trip to Madrid. We understand the pleasure of finding a fresh and clean apartment at your arrival and a stocked up fridge with the shopping list you have sent us. Therefore, when you come home after some time away you do not have to worry about anything at all.

 

Do you want to enjoy until the very last minute of you stay and what Madrid has to offer? Do so! At PEACE OF MIND we will organize the cleaning, remove any perishable items and prepare your second home until you come back.

WHAT IF I WOULD LIKE TO SELL MY PROPERTY WHILE HAVING A TENANCY CONTRACT?

Tenants have a series of rights that landlords have to respect if they want to sell their property while the lease contract is valid. These are included in the urban rental law (or LAU as it’s called in Spain) that rules long term tenancy agreements:

1.-  Tanteo (pre-emption right): the landlord is obliged to notify his tenant the sales conditions he has agreed, including the sales price. The tenant has up to 30 days to notify his landlord if he wishes to exercise his right of buying the property with the same conditions agreed.  The tenant always has priority over any other buyer.

2.- Retracto (buyout right): if the landlord fails to notify the tenant about his wish to sell the property, the tenant can file a law suit once the new buyer notifies him of the sale. He will have 30 days from the time the new owner notifies him to exercise his right to buy the property.

So, if you want to have the option of selling your property while having a tenancy contract it is important to include in the contract a clause stating that the tenant relinquishes these two rights.

Another important aspect to consider is that the tenant, according to the LAU, has the right to remain in the leased flat for the whole duration of a 5-year period. This means that anyone that buys the property must respect this duration and will not be able to move in until the lease contract ends.

HOW MUCH WILL IT COST?

We offer 3 type of services:

Essential PM: from 350 € + VAT - Perfect for those who have just acquired a property. We will handle the initial set up taking care of transferring utilities, registration of IBI (property tax) or any other formalities related with your new home. Click here for more info.

Premium PM: from 160 € per month + VAT -  Includes a full maintenance of your property in your absence and setting it up whenever you wish to enjoy it. Click here for more info.

RENT + PM: from 6% of rental price per month + VAT - Tailored made service for a harmonious tenancy management that suits either owner and tenant´s requirements. Click here for more info.

WHAT IF I HAVE A LEGAL PROBLEM WITH MY TENANT?

At Peace of Mind we do background checks to make sure we select the right tenant for each property.

 

We are experienced in regular legal matters related with tenancy, nevertheless we work closely with legal advice professionals with more specific knowledge who will be able to assist if the situation requires it.

WILL YOU HELP ME TO FIND A SUITABLE TENANT?

Absolutely! Since many of our landlords living abroad never get to meet their tenants, they rely on us to filter profiles to ensure the right choice.

 

We are 100% transparent and always express our impressions about potential tenants. If for any reason we don´t believe is the right one, we will say it.

 

In addition to this, we collaborate with selected relocation companies, RE agencies, have contacts in international schools and embassies.

CAN I DO SHORT TERM RENTAL WITH PEACE OF MIND?

The Urban Leases Act (LAU) of 1994 differentiates two types of urban leases: the standard lease contract and the one with a different use other than permanent residence. Touristic rental is included within the second one.

The main difference between these two types of contract is the length: the first one allows the tenant to live in the property minimum 1 year and extend it up to 5 years, or even 7 years if the landlord is a legal entity. Nevertheless, law allows the tenant to leave the property after the first 6 months of contract.

On the other hand, in lease agreements for different use than permanent residence, the parties can agree about the duration of the contract, being not subject to any mandatory extension. Therefore, once the agreement is expired, it could be extended only if the 2 parties come to a deal.

Additionally, since this type of contract is not considered as tenant´s permanent residence they will not be able to register in the corresponding district.

Within the different types of leasing contracts there is another alternative which is the “contrato de temporada”. Its duration is less than 1 year and the tenant cannot desist the predetermined length and in case he/she would like to leave earlier they have to pay the entire agreed length period.

It is understood that LAU protects tenants when it comes to a long term leasing than to vacation or seasonal rental.

I AM INTERESTED IN INVESTING IN MADRID. CAN YOU HELP?

Madrid became the 4th best European city to invest in 2019 and leads global growth in real estate investment.

 

Real estate prices are low compared to other cities such as London, Amsterdam, or Paris, and within its options includes interesting development projects and offers an attractive income growth forecast.

Rental yields can reach up to 4.5%, some of the highest among major global cities. In addition, Madrid’s vibrant tourism sector, and the increase in Airbnb properties, has caused rental rates to increase relatively dramatically in certain Madrid neighborhoods.

 

Despites the sanitary crisis that we are currently living, Madrid still has to offer so much to its investors.

 

Large scale developments such as Madrid Nuevo Norte (a whole new transformation project of the Chamartin station and its surrounding areas), Torre Caleido (a new tower for the business skyline of Madrid that will be IE business school headquarters), the Bernabeu stadium refurbishing project or the new top hotels such as Four Seasons or Mandarin Oriental.

DO YOU OFFER A PERSONAL SHOPPER SERVICE?

Should you be interested in investing in Madrid and would like us to look for potential options, do let us know!

 

We have a wide experience in selling properties, and once we get to know more about your preferences in terms of investment, we will send you a selection of available options to invest in.

It doesn´t matter where you live, nowadays technologies are extremely useful and will keep us connected by video conference for viewings. You like one the options? Then go ahead and make an offer! many of the main procedures could be formalised remotely and signed by email.

IS THE ENERGY EFFICIENCY CERTIFICATE NECESSARY TO RENT MY PROPERTY?

Since the Royal Decree 2335/2013 came into force on June 1st, 2013, it is mandatory to provide the energy efficiency certificate (CEE) to the lease agreement.

The CEE is expedited by a qualified architect or technician, and represents an evaluation of the  energy performance of the property to rent, in order to provide to future tenants (or buyers) an hint about ​​the energy expenditure that will involve to live there.

The CEE is issued considering a series of parameters such as wall thickness, glazing, orientation of the building, heating system… of the property. Once the report has been carried out, the technician qualifies the property with a letter scale from A to G, being A the best possible energy performance and G the least efficient.  The “energy label” is the visual representation of the rating obtained and must be presented to the Industry, Energy and Mines Council of Madrid. This certificate is valid for the next 10 years from date of registration.

Although many leases are still signed without a CEE, this document is mandatory and should be enclosed to the lease agreement. There is an exception for lease contracts of less than four months of duration, for which it is not necessary. Non-compliance with the energy certificate can lead to fines worth from 300 € to 6.000 €.

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