With the increase in tenant defaults lately, it has become common for landlords to demand guarantees of payment before renting their properties to another person. Before, a bank guarantee “AVAL BANCARIO” was used. However, there are alternatives that provide greater protection to the owner, such as non-payment of rent insurance “SEGURO DE IMPAGO”.
Let 's talk about the non-payment of rent insurance, that is what we usualy recommend to our clients.
As its name indicates, it is an insurance that acts in case of non-payment of rental income. It is contracted by the owner through an insurance company to guarantee that, in the event that the tenant does not pay, they will be able to recover the rent, up to the maximum agreed in the policy.
Through the commitment of professionals in the field, we are able to get pre-approvals (in less than 3 hours) for this insurance for student, foreign and domestic rentals (including those with income outside the country). This gives our clients a high probability of being a successful tenant.
The annual cost is equivalent to 4.5% of the annual rental or 54% of a monthly rental in the case of housing.
The requirements are the following:
- Employed worker:
DNI/NIE, employment contract, latest payroll, certificate of working life.
- Students:
Certificate of studies, justification of availability of funds.
- Foreigners without income in Spain:
NIE/Passport, justification of availability of funds in their country of origin and/or in Spain.
There are other mechanisms to protect the owner from the bad actions of its tenants, such as possible damage to the container and contents or non-payment. It is the DEPOSIT, which is established and deposited when signing the rental contract, and is mandatory.
It corresponds, at least, to one month's rent. The money is retained as long as the tenant remains the tenant. It is only returned at the end of the contract, as long as the tenant is up to date with the payment of the rent and the supply bills that he or she is responsible for and does not have to deduct part of that amount to repair any damage.
This is nowadays a top priority that allows you to close operations in any kind of rentals.