Using Homes

Frequent asked questions

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  • Lower capital exposure. Less external financing. Lower risk.
  • Flexibility. No life commitment. Possibility of extending the term according to you needs.
  • Adapted investment to the real needs of use of the property.
  • Lower costs of formalization, Leases are exempted. Possibility of private lease. No mortgage costs.
  • Assimilation of the right to an absolute title by registration in the Land Registry
  • Greater assimilation to an Ownership Title.
  • The Landlord obtains all rent payments upfront when signing the contract.
  • The Landlord can forget about costs and managing the property for the term of the lease.
  • Lower price than a normal lease (around 40% cheaper than a lease).
  • Uninterrupted possession for the user during the agreed term.
  • Greater possibility of agreements with the owner regarding reforms, furniture, and sublease (*) of the property.
  • Only damaged deposit is given, there is no need to deposit additional guarantee to the deposit.

(*) Only with Landowner prior’s consent.

Very simple: Owners who wish to let the use of their property (Residential Leasing) will make contact with our sales team and we will give visibility to the properties by creating a new and exclusive channel for the sale of properties, attracting clients who wish to acquire a property by a period of time.

On our web page, we invite you to see our tutorial and calculate the price of your property with the interactive calculator in the section “Info for the Property Owner”.

Yes, you can, with the owner’s prior consent. As the rent is paid in advance, the owner has more security and will normally be more prone to admit non-structural changes.

It will depend on the contract that you decide to step in. Like a lease, subletting is allowed with an agreement with the owner, but at Using Homes, we distinguish three types of contract:

  • Private Lease. Lease term up to 5 years (7 years for companies) in full possession.
    No notary, no taxes, no property registration.
  • Recorded Lease. Lease term of more than 5 years (7 years for companies) in full possession.
    Granted by public deed and recorded in the Property Registry, 99% exempt from Tax.
  • Unlimited Lease. Term of more than 5 years (7 years for companies) in full absolute possession with the possibility of subletting.
    Granted by public deed and registered in the Registry Land, 8% Tax on the price of the transfer.

The duration is set in the contract between the owner and the acquirer.

The terms of the Using are characterized by being of long term. They can vary between 3 and 30 years’ term. Being the most common are between 5 and 10 years’ term.

For the Owner: The brokerage fees. 5% + VAT

For the purchaser of the Lease: In addition to the Damage Deposit, he supports the expenses of formalization that will depend on the type of contract:

  • Private Lease: practically nothing.
  • Recorded Lease: Notary and Registry Fees (approximately EUR 900).
  • Unlimited Lease (with the possibility of sublet): Stamp Duty (ITP) + Notary and Registry fees.
The owners must pay the Personal Income Tax, in the same way that they pay it when they make a traditional lease contract. The law also allows the amount received to be “fractioned” during the term of the contract, so that it is declared the corresponding fraction each year, and not everything at once.
The use of a property is not wealth for the purposes of Wealth or Income Tax, so it does not generate imputation of income or additional charge for Income Tax.

The rights and obligations of the parties will be the same as in a traditional lease, with two appreciations:

  1. In a Long-term Cession, in addition to the supplies, the Lessee/ User supports the property Tax (IBI) and the Community of Owners.
  2. In other cases, the Community of Owners and supplies will be on the Lessee, and the Property Tax (IBI) in charge of the owner.
Only personal financing can be accessed. To date the banks do not admit mortgaging the use of the property.

In the case of Private Using (up to 5 or 7 years), the bank is obliged to respect the possession until the expiration of the contract (provided the owner was up to date in the payment at the time of the contract).

In the rest of Leaseholds (Recorded Using or Unlimited), exceeding 5 or 7 years, the possession of the Lease is recorded at the Land Registry, which guarantees its peaceful enjoyment.

Yes, as in conventional leases, the purchaser must pay around 3 % damage deposit, which will be placed with the competent public organism, as a guarantee to cover possible damages.

The acquirer saves the additional guarantee, since there will be no defaults on the rent.

Using Homes welcomes you and invites you to get in touch with our team of qualified professionals who will advise you on the conditions.

Please feel free to request the Owner’s Manual and a copy of the Mandate of Assignment Agreement. Using Homes undertakes to expose your property in the market. The owner must provide with the appropriate multimedia material, as well as give us the keys to the house if it is necessary.

If the sale price of a property is €500,000 and the owner usually rents it between 1,700 €/2,000€ monthly, what price will the Lease reach approximately?

In this case, the owner could obtain around €65,000 in advance payment for 5 years, eliminating all risk of non-payment and expenses for supplies and community.

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