Cristina, along with her sister Patricia, inherited the apartment from their parents; Raúl moved to another city for work and had to leave his owned home, which still had a mortgage. Alfredo, who had some savings, invested in a second home. They all decided to rent the homes, to keep the properties occupied, with the risks that this entails: theft, lack of maintenance, “invisible” breakdowns…; and by renting them, bills could be paid and even mortgages can be amortized. Despite this, they were afraid that the investment would turn into ruin.
When they visited our brokerage, we suggested having a contingency plan by contracting Rent Default Insurance.
How do you know if you are renting to a potential non-payer?
Carrying out a study of the tenant, before making the rental contract, this insurance handles carrying out a solvency study of the candidates, immediately and with only some basic information. This assessment of tenants helps to minimize the risk of renting your property. Even so, that risk does not disappear.
All legal expenses are included, up to eviction.
But what happens when a conflict comes about, especially due to a tenant’s shortfall who becomes a non-payer and does not pay the monthly rent or who refuses to leave the property despite the fact that the lease has ended? We can resort to the courts and undertake a cumbersome procedure for the resolution of this conflict.
And in this situation you can do it yourself with your own means or transfer the problem to your insurer if you have contracted “Rent Default Insurance” that will compensate you for the months owed from the first month. This can even include the non-payment of supplies and in addition, will be the ones who will claim and defend your rights due to tenant breach before the court until eviction, including lawyers’ fees, prosecutor costs, judicial and notary costs.
With Rent Default Insurance, if your tenant stops paying… you continue to collect your rent on a monthly basis, without waiting for a court ruling.
The number of rentals of premises and homes has increased considerably in recent years. This is due to changes in the habits of young people, professional mobility and investor behaviour. This is good news. The bad news is the rise in cases that occur due to delays or defaults and that the average debt is around 6,000 euros.
With insurance, your interests are protected. Your well-being is protected.