Many of the owners who were hesitant to assign a property to rent, are released to it thanks to the non-payment insurance. As we already commented in the news 22% of the Spanish rent, it has been observed that in recent years the purchase of housing has declined in favor of rent. Many …

Non-payment insurance helps to encourage rent

Real estate news, unpaid insurance encourages rental.

Many of the owners who were hesitant to assign a property to rent, are released to it thanks to the non-payment insurance.

As we already mentioned in the news 22% of Spaniards rent , it has been observed that in recent years the purchase of housing has fallen in favor of the rental. Many believe that this change of Spanish mentality is surprising, but the truth is that it goes hand in hand with the current socio-economic context.

Well, in this context the owners find the rent as a profitable activity ( prices and demand rise), but there has always been that fear that tenants will stop paying dues. Every time there are more landlords who, to be calmer and have guarantees, hire a non-payment insurance . For example, according to the Mapfre insurer, almost 20% of the owners have one of these insurances and the Idealista portal ensures that 70% of owners who have hired one, renew.

How does the default insurance work?

In general, this insurance offers guarantees to the landlord in case of problems or conflicts that the tenant may give. In the first place, the insurance studies the solvency of the future tenant requesting his work contract and his last payroll, creating a filter required as a condition of insuring the home and once the contract is signed, the owner would cover up to 12 months with his policy of rent owed whenever you notify the non-payment when it occurs. According to the characteristics of the insurance, this would proceed to the payments of the receipts and also to the legal defense and the protection of the furniture.

How much can an insurance cost?

In a house whose monthly rental fees are € 600, the cost of insurance can be between € 250 - € 400 per year.

Default insurance is taking center stage especially in large capital cities .

Other related news:

Is renting money? Many Spaniards no longer think so

The rental price has gone up 25% since 2013

Never Complain, by Baltasar Gracián

Aphorism 129 Never complain. «The complaint always brings discredit. More serves as an example of daring to passion than of comfort to compassion. It opens the way to those who hear it for the same, and it is the news of the grievance of the first apology of the second. They give some foot with their complaints of past offenses ......

Aphorism 130 Baltasar Gracián: Making and making seem

Picture of Baltasar Gracián found in Graus (Huesca) Spain. Make and make seem: "Things do not happen for what they are, but for what they seem. To be worth and to know how to show is to be worth twice. What is not seen is as if it were not. The reason itself does not have its veneration where it has no face ......

The training of a real estate agent

To be a good agent of the real estate market, training in different subjects is essential. These subjects range from knowledge of technology and marketing to knowledge of economics and social skills. - ACADEMIC TRAINING An academic education oriented to marketing and economics is fundamental. Regarding marketing, it is important to know how to sell. Even if …...

VR 360 in real estate. The revolution is here

For a long time, the real estate sector has moved in a similar way: the seller announces the property and the buyer looks for offers and visits those that are of interest according to the price and their needs. One of the most notable innovations was the arrival of real estate portals that, since they appeared, have ......