Single Family Rental: A New Era in Chalet Rentals in Spain

The arrival of the Single Family Rental (SFR) model in Spain marks a significant milestone in the housing market. Through this new model, tenants are offered the opportunity to live in newly built chalets without the need to make a purchase. This option, which has already proven successful in countries like the United States and Canada, presents itself as a fresh and accessible alternative in a country where property rentals are typically limited to apartments or second-hand houses. The company Wellhomes has been a pioneer in introducing this concept to the Spanish market, supported by the collaboration of Asentis and Básico RE. During the presentation at IFEMA Madrid, the company highlighted that this model responds to the growing demand for rentals of single-family homes, especially among families seeking a better quality of life and a larger living environment, which a conventional apartment may not always provide. Historically, renting chalets in Spain has been reserved for a segment of the population with a higher socioeconomic profile or for those seeking vacation properties. However, the introduction of SFR promises to democratize access to these homes, allowing a broader spectrum of citizens to enjoy chalets within their economic means. This approach is particularly appealing to families with children and pet owners looking for more spacious and functional areas. Wellhomes has made available to the market over 500 chalets distributed across five areas of the metropolitan area of Madrid: Loeches, Tres Cantos, Ciempozuelos, Cabanillas del Campo, and Illescas. These areas have been strategically selected for their growth, proximity to major communication routes, and efficiency in public transportation, which facilitates daily commuting to the capital. The chalets offered vary in design and layout, with options of 3 and 4 bedrooms, spacious gardens, and spaces dedicated to remote work. Each home has the Breeam Very Good certification and an energy rating of A, meaning they have been built following rigorous environmental standards and using energy-efficient technologies that promise significant savings on utility costs. The first promotions of chalets will be delivered in July and August 2024, and interested parties already have the opportunity to visit the pilot chalets. The remaining three promotions are already on a waiting list, indicating considerable demand from potential tenants eager to explore this novel rental model. Among the requirements to access these chalets is the approval of a financial solvency assessment, the submission of employment documentation, as well as a deposit and an additional guarantee. For those wishing to move in with their pets, an extra monthly fee and liability insurance will be required. This approach ensures that the residential community is composed of responsible and solvent tenants. Rental prices vary based on location and size of the chalet, starting from 1,595 euros per month in Loeches, and reaching up to 2,750 euros per month in Tres Cantos. These rates are competitive, especially considering the quality of the homes and the common areas they offer, such as swimming pools and recreational spaces. Municipalities like Tres Cantos and Loeches have been selected for their range of services and proximity to Madrid, where commuting times are reasonable. For example, Tres Cantos is only 15 minutes from Plaza de Castilla, facilitating access to the capital and its work environment. The combination of good connectivity and quality of life is an attractive factor that undoubtedly seems to appeal to many families in search of a new home. With the arrival of Single Family Rental in Spain, a range of possibilities opens up for those seeking a broader and more comfortable lifestyle. This model not only addresses a housing need but also reflects a shift in the housing culture in the country, where more and more people are opting for the flexibility of renting over the rigidity of ownership. Undoubtedly, the arrival of Wellhomes will mark the beginning of a new era in the Spanish real estate sector.