Madrid City Council has funded the refurbishment of 219 vacant homes to bring them onto the affordable rental market through the ReViVa programme, managed by the Madrid Municipal Housing and Land Company (EMVS Madrid). The initiative provides an interest-free advance of up to €45,000 to finance refurbishment works, an amount that is subsequently deducted in instalments from the rent received by the owner.
To access this funding, property owners must transfer the right of use of the property to the municipal company for the agreed period. In return, they receive the agreed rent, regardless of whether the property is occupied, while EMVS Madrid takes on the administrative and legal management of the tenancy.
The organisation also covers service charges, property insurance, routine repairs and property tax, as well as the costs associated with the transfer, including capital gains tax and registration with the Land Registry.
Álvaro González, the Housing Policy Councillor and Chair of EMVS Madrid, said during a visit to one of the refurbished flats in Puente de Vallecas that the programme aims to bring vacant properties back into use by offering guarantees to both owners and tenants. According to figures provided by the City Council, approximately half of those who reach the end of the initially agreed period choose to renew the lease.
The flats are allocated to households with a weighted income of up to 7.5 times the Public Multiple-Purpose Income Indicator (IPREM), which equates to a maximum of around €92,000 gross per annum for a four-person household. The rent is between 15% and 20% below market rates and cannot exceed 30% of the tenant’s income.
One of the properties included in the scheme is located in Puente de Vallecas; it has a usable floor area of around 60 sqm and will have a maximum rent of €836 per month. Built in 1964, it required a comprehensive refurbishment, which included the reorganisation of the rooms to enlarge two of the bedrooms, as well as the renewal of the external joinery and the electrical and plumbing installations.
The works have involved an investment of €30,900, which will be deducted from the monthly amount paid to the owner for the duration of the usufruct contract. EMVS Madrid has also fitted the property with appliances, including a fridge, oven, ceramic hob, washing machine and dishwasher.
The amount deducted each month depends on the cost of the works and the duration of the lease. The City Council advances the investment at 0% interest, up to a maximum of €45,000, and also covers the corresponding VAT.
All the homes included in the programme to date have required some form of refurbishment. Of these, 61% have undergone a complete refurbishment, 30% have required partial refurbishment, and the remaining 9% have needed only minor works.
