Property prices have risen dramatically over the past several years due to a boom, so there has been upward pressure on rentals. Monthly rentals for a 1-2 bedroom furnished flat start at €600/month in Madrid and Barcelona. A cheaper option is a shared apartment (piso compartido), which may start around €300/month in the major cities.
Other options include staying with a family or in a pension, residencia or colegio mayor (student hall). These often provide more flexibility in terms of rental terms, can be economical and, in the case of staying with a family, will help improve your Spanish.
May to July is the best time for flat hunting; August can be difficult as people are on holiday. September tends to be the worst month as people return from vacation and students start a new year. The housing market can also be slow over the Christmas period.
Finding a good apartment at the right price before you arrive in Spain is difficult. Landlords prefer to meet tenants before signing a contract and the wide range in quality means it is not advisable to commit to rent a flat "unseen". If you require your living arrangements to be organized before you arrive, you can use an apartment rental service. However, these do tend to be expensive.
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