The Balearic Government launched last week the program Secure Rentalan ambitious initiative that aims to capture empty homes and offer them to residents at reduced prices. In a context where demand far exceeds supply, this plan is a first step to increase the availability of properties and mitigate the rising prices in the rental market. La Voz de Ibiza spoke with Bernat Seguí, secretary of the Association of Property Administrators of the Balearic Islands (CAFBAL), who stresses that the program could provide real solutions by offering “collection and maintenance guarantees” for owners, and more accessible rents for residents. “This is a program to attract homes to the market that owners have been unwilling to lease for fear of non-payment or damage,” Seguí explains. “The Govern becomes a tenant for these owners, guaranteeing the payment of rent and the return of the property in good condition, and then re-rents these homes at prices 30% lower than the market,” says Seguí. In spite of the obvious benefits for the owners who take advantage of the program, the interest that it has awakened in Ibiza and Formentera is practically nil. So far, the Association of Administrators has received about 50 queries about the program in the Balearic Islands, of which three have been from owners in Ibiza and one from Formentera. Although these are very modest figures, Seguí has considered them encouraging.
How does Secure Rental work?
The Secure Rental scheme involves the signing of two contracts: one between the owner and the Balearic Housing Institute, and the other between the IBAVI and the tenant who will enjoy the property. “The owner is offered a market rent, appraised by a real estate agent, and the proper use of the property during the contract is assured,” Seguí explains. In addition, the Government has counted on the collaboration of the professional associations, both CAFBAL and the Official Association of Real Estate Agents of the Balearic Islands(COAPI), to manage and supervise the process of attracting and renting. “Our task is to ensure that the housing meets the requirements and that the contract is formalized correctly, thus providing extra protection to the owner,” Seguí adds. To participate in the program, the homes must meet a series of requirements that ensure their optimal condition. “This is not social renting, but a program oriented to the middle class market,” comments the CAFBAL secretary. Among the requirements, the housing must be vacant for at least six months or not have been registered for more than a year, as well as having basic facilities in good condition and an energy efficiency certificate.
A possible relief in the rental market in Ibiza
The program comes at a time when the housing crisis in the Pitiusas has worsened. According to Seguí, the objective is to balance a market economy unbalanced by the lack of supply: “There is a barbarity of demand and an immense shortage of supply. If we can get homeowners to be encouraged to put their homes on the market, that will benefit everyone.” “This won’t solve the problem overnight, but it can begin to alleviate it,” says Seguí, who also adds, “The worst thing that can happen is that the program doesn’t have the desired impact. However, as homeowners see the advantages and guarantees, supply is likely to increase.”
What guarantees do owners have?
One of the biggest concerns among homeowners is the security of their properties. Seguí emphasizes that IBAVI guarantees timely payment and undertakes to return the property in the same condition in which it was rented. “If a tenant causes damage, IBAVI is responsible for repairing it. The guarantee to the landlord is 100%”.
In addition, homeowners who participate in the program enjoy tax advantages, such as the possibility of being taxed on only 30% of their income, when they offer their homes for social use. This aspect is key, according to Seguí, to encourage more homeowners to consider the program. “Many homeowners fear losing their homes or not receiving payments. Here they are assured of a timely collection and the recovery of the property in perfect condition, which is a protection they don’t have in the traditional market,” he explains. On the other hand, it is not easy for a homeowner to be a beneficiary of the plan. In addition to proving their solvency, they must provide a joint guarantor with the same creditworthiness.
Is Rent Safe the ultimate solution?
Although the Govern estimates that it could capture up to 2,000 homes on the islands, Seguí is cautious about the short-term results. “It’s a positive step, but it’s not the only solution,” he clarifies. “This program is one piece within a broader policy of access to housing. It needs to be complemented by other measures to really address the supply shortage.” For the CAFBAL secretary, “this program brings an important novelty, and the stimulus to homeowners is an approach that has not been explored until now. In the long term, if more homes can be added to the market, the effect will be felt.” The first contracts are expected to be signed starting in December, once owners complete the required paperwork and documentation. “We are now in the phase of collecting certificates and permits. From then on, the process will be more agile,” Seguí points out. With the launch of Alquiler Seguro, the Balearic Government is trying to respond to the lack of housing in Ibiza and Formentera, where the market has reached exorbitant prices. ” What we are looking for is to encourage owners to put their homes at the disposal of the community, under conditions that offer peace of mind and security for all,” Seguí concludes.
