Difference between deposit and agency fee

One of the most common aspects in which you will have doubts if you are looking for an apartment, will be the concept of deposit and agency fee. You will see that, to book an apartment or room, most owners, in addition to the first rent, will ask you to pay a deposit and if you are working with an agency, they will additionally ask you an agency fee.

Do not worry, in this post we will explain what each concept refers to and the importance of paying for them.

Deposit:

The deposit is an amount that is requested as part of the rental agreement. This serves the landlord as a guarantee, to insure against any damage to the property or non-payment by the tenant. This deposit is generally equivalent to one month’s rent and is refundable at the end of the stay. For the return, is requested to:

• Leave the apartment or room in the same state in which it was found, without any damage thata was not warned at the beginning of the contract.
• Not owe any month’s rent and have paid for the supplies in full.
• In many contracts a deduction is included for the final cleaning of the apartment, it is a deep cleaning and disinfection necessary especially in these times.

If you meet these conditions, don’t worry, you will have your deposit back.

Agency fee:

It is a payment that is requested when the rental is made through an agency. It is common that in other countries this cost is borne by the owner, but in Spain is the the tenant who assumes it. It is usually equivalent to one month’s rent + 21% IVA.

Can you assure me that by paying a commission, the agency will take over the administration of my home? No. The agencies are usually intermediaries and are dedicated to looking for potential tenants and making the corresponding filters so that the owner does not worry about it, but then they ignore the tenant, and the owner is already in charge of managing the apartment.

In our case, LivingMad provides a different service by being property managers, so we will also take care of the comprehensive management of your apartment once you move into it.

We will make sure that the apartment or room is ready for your check-in: that the kitchen has utensils and appliances, that the common areas are decorated, that the rooms have a set of clean bedding and towels… In this way your new place will be ready for your arrival. We also take care of the arrangements, maintenance and anything else related to the apartment or room.

It is important to note that the agency fee does not replace the deposit fee, it is a complementary payment.

Now that you have a clearer idea of the differences between these two concepts, rest easy and start looking for your next home HERE.