Miguel Marzal, a prominent figure in Barcelona’s property market, faces numerous complaints from tenants, investors, and former employees regarding his extensive re-renting operation. The Barcelona City Council has initiated sanctioning proceedings against companies linked to Marzal for operating substandard housing. The Ara newspaper has documented widespread irregularities, including unreturned deposits and unsanitary living conditions, across at least 30 apartments in various cities.
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Widespread Complaints Against Property Empire
Tenants allege that companies associated with Marzal and his partners fail to return security deposits. They also report unsanitary living conditions, with some properties infested with cockroaches. Additionally, tenants face unjustified utility charges, veiled threats of eviction, and prolonged service interruptions. For instance, residents in one flat endured three months without electricity, while another experienced flooding from a plumbing fault. The Ara newspaper confirmed these irregular situations in numerous properties managed by TACT Living, which has overseen approximately 3,000 rooms.
Problems extend beyond tenants to property owners, investors, and former employees. Investors, who lend money expecting high returns, claim issues with Marzal’s management. Former staff members report not receiving wages and not being registered with Social Security. “He thinks he is Llados ,” an former collaborator told the Ara newspaper. Marzal denies any irregularities or malicious intent to harm tenants, investors, or owners. He attributes issues to the challenges of managing operations across multiple cities and admits to making errors as a young entrepreneur.
Barcelona City Council Takes Action
Barcelona City Council has opened several sanctioning proceedings against Marzal’s associated entities for operating substandard housing. These actions follow numerous complaints filed with the Catalan Consumer Agency and various city councils. In the Gràcia district of Barcelona, a popular area for young residents and expats, Anastasiia and her partner moved into a TATC property on Ariosto Street in July 2024. They endured a month without water or gas, with their complaints about utility problems consistently ignored. The couple also reported “unsanitary” conditions and a cockroach infestation, along with inadequate cleaning services not matching their contract. Around a dozen people lived in that house, all expressing dissatisfaction with the company’s treatment. Anastasiia was not returned her deposit and was owed nearly 1,500 euros.
Marzal’s Public Persona and Business Model
Miguel Krasnoruzhskikh Dvorkin, known as Miguel Marzal, was born on 2 October 1999, in Irkutsk, Siberia, and moved to Valencia at six months old. He cultivates a public image of a self-made entrepreneur, frequently showcasing a luxurious lifestyle with high-end cars, designer clothing, and international travel on social media. At 19, Marzal published a book titled How to Retire Young and Rich, focusing on entrepreneurship and financial freedom. He conducts in-person and virtual training sessions, or “masterminds,” which can cost up to 1,500 euros for a weekend intensive. These sessions attract both new and experienced individuals in the property sector.
Marzal’s business model involves renting properties, subdividing them into multiple rooms, and then re-renting them to numerous tenants. He claims to have expanded from four flats to 400 across Barcelona, Madrid, Valencia, the Canary Islands, Mexico, Miami, and Italy. His companies, including TATC Rent and Investments, established in 2022, and TACT Living, have managed thousands of rooms. He also operates Flip&Go Real Estate, promoting “house flipping” investments. Marzal leverages his over 20,000 Instagram followers to promote these ventures.
Complex Corporate Structure and Financial Practices
The corporate structure of Marzal’s empire is complex, involving several entities. Noinatra, initially started by his mother, Eugenia Krasnoruzhskikh, now serves as the parent company. Another entity, Grosfera-Investments, created by Marzal, is managed by his mother. Partners operating under the TATC Living brand establish their own companies, renting properties, renovating them for maximum occupancy, and then seeking tenants. An former employee explained to the Ara newspaper that this operates like a franchise, with Marzal retaining a percentage of income, potentially up to 50%, from partners’ businesses through private contracts. Additionally, partners pay monthly royalties to cover the parent company’s operational costs, including marketing and advertising.
Marzal actively solicits private investors, promising high returns of up to 35%. He communicates these opportunities through channels like WhatsApp groups, where he recently offered a 28% return on a 4,500-euro investment, claiming he would contribute the other half. The Ara newspaper reported that such operations often close within hours. However, former partners express concerns about the sustainability of these high-yield promises, suggesting Marzal prioritises appearances. A former worker responsible for tenant communications revealed that many payments, including investor funds and security deposits, were received in cash. Crucially, some rental contracts, seen by the Ara, indicate that security deposits were not lodged with the Institut Català del Sòl (Incasòl) unless specifically requested by the institution. Depositing these deposits with Incasòl is a mandatory legal requirement for all landlords in Catalonia.
Ongoing Investigations and Future Implications
The numerous complaints and ongoing sanctioning proceedings by the Barcelona City Council highlight significant concerns within the shared housing market. The Ara newspaper has contacted approximately 40 tenants, many of whom are young international individuals, who have experienced similar issues to Anastasiia. While the individual amounts lost, ranging from 350 to 1,500 euros, are relatively small, they often deter victims from pursuing legal action. The investigations into Miguel Marzal’s operations underscore the need for greater transparency and stricter enforcement of housing regulations to protect tenants and investors in Barcelona and beyond.
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Originally published by Ara Cat. Read original article.
