Renting in Madrid: Complete Guide for Renters and Landlords in 2025

Madrid, a vibrant city full of opportunities, attracts thousands of people looking for a new home. Whether you are a student, a professional or a family, renting an apartment in Madrid can be an exciting experience, but it can also generate doubts and questions. At AVALON STUDIO, we want to help you navigate the rental market in Madrid in an informed and successful way. This comprehensive guide will provide you with valuable information on prices, popular areas, requirements, paperwork, and helpful tips for tenants and landlords.

The Rental Market in Madrid: Current Panorama

The rental market in Madrid is dynamic and competitive. In recent years, we have seen an increase in demand for rental housing, which has led to an increase in prices in some areas. However, there are also opportunities to find affordable rentals, especially on the outskirts of the city or in less central neighborhoods.

Average Rental Prices by Zones

Rental prices vary significantly depending on the location, size, and characteristics of the home. Here's a rundown of average rental prices in some of Madrid's most popular areas:

• Center: The heart of Madrid, with neighbourhoods such as Sol, Gran Vía and Malasaña, continues to have the highest rents in the city, with an average price exceeding €25/m². This translates into rents that can exceed €2,500 per month for two-bedroom apartments.
• Salamanca: Known for its exclusivity and elegance, this district is also characterized by high rents, with prices that can exceed €30/m² in some areas.
• Chamberí: A traditional neighbourhood with a cosy atmosphere, it offers a variety of rental options with moderate prices, with an average of €21/m².
• Retreat: Famous for its park and stately buildings, Retiro combines tranquillity and proximity to the centre, with slightly higher rents, around €24/m².
• Arganzuela: A district in constant growth, with urban renewal projects, offers more affordable rents compared to the center, with an average of €18/m².
• Moncloa-Aravaca: A residential area with a wide range of single-family homes, it has varied rents depending on the area, with prices that can range between €17 and €22/m².
• Fuencarral-El Pardo: An expanding district, with new property developments, offers more affordable rents on the outskirts, with an average of €16/m².

Factors Influencing the Price of Rent

In addition to location, other factors can influence the price of rent, such as:

• Size and characteristics of the house: A larger apartment, with more rooms and amenities, will generally have a higher rent.
• Condition and age of the property: Renovated or newly built homes tend to have higher rents.
• Services and transportation: The proximity to metro stations, buses and other services can increase the rental price.

Requirements and Procedures for Renting in Madrid

Both tenants and owners must comply with a series of requirements and legal procedures to formalise a rental contract in Madrid.

Tenants

• Documentation: DNI or NIE, employment contract or proof of income, and in some cases, bank guarantee.
• Bail: Generally, a deposit equivalent to one month's rent is requested.
• Rent payment: Monthly rent payment must be made as agreed in the contract.

Owners

• Documentation: Deed of ownership, DNI or NIF, and energy certificate of the home.
• Rental Agreement: A rental contract must be drawn up that complies with current legislation.
• Tax return: Owners must declare the income obtained from the rental of the property.

Helpful Tips for Renters

• Research and compare: Before deciding on a home, research different areas and compare prices.
• Visit the property: It is essential to visit the property in person to ensure that it meets your expectations.
• Read the contract: Read the rental agreement carefully before signing it and make sure you understand all the clauses.
• Contact the owner: Maintain fluid communication with the owner to resolve any questions or problems that may arise.

Helpful Tips for Homeowners

• Set a fair price: Research market prices in the area to establish a competitive rent.
• Select tenants: It makes a careful selection of tenants, asking for references and verifying their income.
• Keep the home in good condition: Make the necessary repairs and make sure that the property is in optimal condition for renting.
• Complies with legislation: Find out about the current rental legislation and make sure you comply with all legal requirements.

AVALON STUDIO: Your Trusted Real Estate Agency in Madrid

At AVALON STUDIO, we are experts in the Madrid property market and can help you find the perfect rental apartment for you. Whether you are a tenant or a landlord, our team will provide you with personalized advice and guide you through the entire process.

Conclusion

Renting in Madrid can be challenging, but with the right information and support, you can find the ideal home for you. We hope this comprehensive guide has been helpful to you. If you have any questions or need additional help, please do not hesitate to contact us.