TengoTuCasa is an average sized agency operating only in Madrid, advertising around 40 properties. It has the industry status adequate to be listed on Idealista, one of the major property portals in Spain. They are extremely pro-active with their marketing, with high coverage across social media. They are well established with over two decades of experience. However there do seem to be some communications and operational issues.

🔥 At a Glance              

TengoTuCasa was launched in 2004, an operating record of over 2 decades of business, making it an established agency. It runs 10 offices servicing nearly 700 employees, and operate only in the San Blas and Ciudad Lineal areas of Madrid. They are Idealista-listed, with around 40 at any one time, and have been so for their entire operations. On average, Spanish realtors have 20-50 listings at any one time. This would make TengoTuCasa a typical agency by size, but their focus is concentrated, so their presence compares well to agencies with average listings spread further afield. 

While established and with a good marketing program, there seems to be operational issues and a history of communications breakdowns, even after negotiations have commenced. Basic information on properties is often not available, and the refund process is reportedly slow. With this mix of qualities – typical of real estate in Spain – it is important to have a closer look at the details to reasonably compare and assess the degree of risk.

🤩 Benefits in Detail

TengoTuCasa Network and Organisation – Launched in 2004, TengoTuCasa is an established agency with over two decades of operations within the real estate industry. It has a Madrid focus, operating across the two areas of Ciudad Lineal and San Blas, with 10 offices representing their properties. Being a long-term business, and having been listed with Idealista since its inception, are both positive factors which invite confidence in its services.

Operational Diversification –The agency operationally diversified with a range of financial and property management services interconnected for convenience, reflecting a well intergrated organization. Besides sales and rentals, they offer:

• Property management for rentals
• Management and maintenance services for absentee owners
• Affiliated financial advisory and advanced money services
• Affiliated legal advisory services
• Reformed properties which carry guarantees

Listings – With the average real estate portfolio in Spain numbering from 20-50 listings, TengoTuCasa is a comfortable 40, which are listed with status on Idealista. However, their spread is across just two regions in Madrid. This focus is more significant than the same volume across several cities. Client feedback report a difficulty of properties below €200,000 in preferred areas. This limited number of affordable properties in their desired locations ultimately reflects a scarcity of suitable properties to buyers. This is currently a growing problem for all investors.

Pro-Active Marketing and Advertising – TengoTuCasa takes an active approach to marketing and advertising their properties, pushing for exposure to the general public, including SEO optimisation. Focusing on Madrid and location-based campaigns on a variety of platforms, they have built up an extensive following for their advertising reach, establishing the TengoTuCasa agency as a notable brand within the market, with 70,000 members as the ‘agency of 3,000 reviews’. This reflects TengoTuCasa’s efforts to boost their reach through modern marketing technology rather than just traditional methods.

Quality Control – TengoTuCasa has a department for quality control, aiming to maintain customer service and ensure the satisfaction of clients. They work to maintain a competitive edge within their smaller organization against the larger and fiercer agencies such as Haya. A finite focus area – Madrid – would be helpful in this context.

Legal and Property Protection – There is an active promotion of legal and insurance services to protect buyers. They apply legal requirements such as they are, such as LOPD data protection laws, including availability of liability insurance, mortgage advisory services, and financial services. This extends to protection of homeowners against squatters, a problem in Spain with growing complexities.

Group Structure – There are affiliated companies which offer services, such as TengoTuCreditio which offers finance and mortgaging options, and Décor Arte Madrid with renovating expertise. Compare these services for costs and quality of products, to ensure the most suitable and viable service.

👉 Customer Complaints

Dual Commission Structure – Commission fees charged to both the buyer and the seller. The usual in Spain is for a commission of 3-6% to be charged to the seller. TengoTuCasa charges 3% to both buyer and seller. The fee is within norms for sellers, but an additional cost not normally paid by buyers, who also pay other fees.

Bidding Fees – A rather sizeable pre-bidding deposit for auction is required, reportedly of €5,000, which typically takes up to two weeks for a refund. This applies considerable pressure onto buyers to purchase, which has additional implications in an auction where the price is undetermined when the highest bid is reached.  

Documentation – While it is typical in Spain to require potential buyers to sign a contract before viewings, here the personal data required has been felt to be excessive, especially when including all parties in company, not just the interested one(s). Consent clauses for sharing of personal data with another party are confusing, leading to anxiety about the way their information might be used. This is another area where an independent expert might be sought to clarify, especially across languages.  

Communication Issues – The biggest problem here is the breakdown of communication during negotiations even after the deposit has been paid, the most distressing occurrence being when an offer is not conveyed, such as a higher offer designed to secure a desired property. This results in the owner accepting a lower offer and the party with the higher offer missing out on their property.

The Spanish manner of communication is more direct than America, for example, and there are also cross cultural and language issues to take into account. The client needs to be aware that a verbal commitment is not legally binding. Nevertheless, there are some complaints about rudeness and lack of professionalism from staff, lack of explanations about the process, and dismissiveness regarding issues raised by clients. Co-ordination between departments also seems to experience breakdowns with information on the same property often being contradictory.

Legal Matters – Contracts are heavily protective of agency rights and limited in terms of client protection. They are also lacking in details of standards and timelines, and include charges not documented in the contract but conveyed only verbally. For example, the refund process and timelines can be notoriously vague. Client complaints include inadequate guidance and information on property legalities including obligations which come with the transfer of title.

Hidden Costs – The Spanish real estate market has a lot of additional costs and checks that need to be made, but TengoTuCasa is typically not forthcoming with these details. They should be upfront with details such as any overdue utility debts and taxes owing, which become the responsibility of the new owner after purchase. Unusual community obligations could also involve annual fees.

With repossessed properties in their listings, potential clients should be alerted to this information, as well as a complete ownership history where other hidden surprises might lie. Potential buyers need to make sure they are aware and hire independent experts to follow up this information. Ideally, the client should be aware of all costs and implications prior to initiating offers.

Finances – The help of financial services is limited on its advice, especially regarding client financial obligations. In particular, supposed pressure to encourage clients to make payments in cash to avoid VAT fees for a cheaper deal raises questions about the legitimacy of the company’s dealings. This seems to be a common thread in Spain. Different countries have different cultures and responses to legalities and rules. A bigger picture into the Spanish situation and reality needs to be taken into account.

💃 The Spanish Property Market in Context

Every country has different norms. The property market is no exception. If planning to invest in another country, it is not just a different legal system, but also different cultural expectations in place that need to be accommodated. Running blind to these things simply leads to frustrations, additional costs, and frequently ultimate failure. The most significant concept to take on board is that it simply will not work the same way as it does at home. 

It is important to research the market – in this case Spain – and be flexible. In a familiar environment, the process of purchasing a property can be a minefield. In an unfamiliar place, even the most pedantic researching may miss something, but it will at least dramatically forestall issues and extra costs. The way rules are applied has cultural variations and can vary to the expected.

Here are some things that seem to be typical of this market in Spain.

📌 Agencies and Regulations

The market has minimal regulations to date, so most of the details are just the norms which have become standard in real estate. For this reason, it is important to shop around and compare different agencies. This includes all the small details of what exactly is included for the services and fees you will be paying. Do not assume that even the most basic in your mind is necessarily a given.

As a renter, make sure to find out if there are any responsibilities attached to the property, and who is responsible in the event of a problem (agent or landlord),

😍 Communications

This can vary widely. Spanish is a more direct language, as compared to English and service norms in the USA, while someone from Germany might perceive no lack in courtesies. When dealing across languages, there is always the possibility of misunderstandings – a word wrongly used, even by accident, a phrasing which is confusing. Even if the agent seems to have good English, this may be limited to real estate and run thin outside and with idioms, and be challenged by certain accents.

Be open-minded to the possibility that shortness may not be rudeness. Keep your language simple, in short sentences, and use easier words. Just as the buyer is not aware of Spanish norms and epectations, the agent may also not understand your expectations. Exercise flexibility and patience, and use a variety of resources to satisfy your questions.

Also be very clear that verbal agreements carry as much weight as they probably do at home – they are not legally binding.

▶ Unpaid Debts

In Spain, unpaid utility bills and taxes are a part of the property, not the individual. Any such debts will become the responsibility of the new owner on exchange of title. It is important to ascertain if there are any outstanding issues and take them into account with the property price, since these things can potentially run into the thousands of euros. Like many agencies, TengoTuCasa sells repossessed properties, making it even more essential to confirm if these exist.

Unpaid bills can also result in utilities being cut off, which is not only inconvenient but tends to be more costly than a simply change of name. As with any minimally regulated market, there can also be confusion over the name of an account, potentially creating even further hassles.

🤝 Community Obligations

Properties in Spain – especially in areas outside the cities – often carry old community responsibilities which can also involve annual fees. Such things might be arrangements for a shared water source which runs with a schedule of which property has access at which times, and committees responsible for community needs. If the property of interest has these, there will be payments – which could also be overdue – and property upgrades that might be desired to accommodate any inconveniences.   

👉 Property Information and Searches

A regular complaint in feedback is the lack of even basic information about a property. Many agencies reflect a tendency to push sales with vague information and lack of answers to valid questions. Compare across agencies, and seek professional advice. Seek the services of independent legal and financial experts. Check over the details of contracts with them, ask the questions, and request searches:

• Utilities debts
• Taxes due
• Community obligations and payments
• Complete history of property ownership
• Property survey including foundations

Verbal commitments are not legally binding and should be verified in writing.

⭐ Independent Experts

It is important to source independent legal, financial and property experts. The agency has a vested interest – it wants to sell properties to make money, and with government regulations which are weaker than many other places, this erodes the level of transparency and service.

Research the Spanish real estate market, employ the services of independent offices and make sure to request the various searches. Note feedback and adjust expectations to fit reality, including for any renovations or property management needs you might want, do not expect things to work the way they do at home, and make no assumptions, even on things you would have thought a given. These things vary from culture to culture.

All these things can change the perceived cost/value of a property. By spending a little extra at the beginning on the services of professionals, you could save on frustrations from unexpected setbacks, and the grief of a surprise down the track which could cost millions of euros in unexpected expenses.

💡 Our Verdict

As a medium sized agency with an established record in the market of over 2 decades since 2004, with over 40 properties listed continuously with Idealista for this whole period, TengoTuCasa has 10 offices focuses within two areas in Madrid. It is pro-active in marketing on social media giving a wide-ranging reach. They claim legal compliance and also offer insurance and services.

Negative feedback don’t seem to extend beyond the normal issues with the Spanish market, including limited property information, non-disclosure of hidden costs, agency-favoured contracts with minimal customer protection, slow refund processes, lack of inter-departmental streamlining, and communications issues including the breakdown in the middle of negotiations. They also have a hefty pre-viewing fee and a commission structure charging sellers as well as buyers.     

On balance, we feel that TengoTuCasa is a more decent option within the Spanish real estate market, but as with all transactions in this market, we recommend research, being aware, and engaging the services of independent professionals to save on excessive frustrations and unexpected costs at a later date.

❓ FAQs – TengoTuCasa