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

Is the Energy Certificate mandatory...
Is the Energy Certificate mandatory for real estate agencies?

More and more consumer inspections are being carried out to the real estate agencies to check if they have the Energy Certificate in the real estate that they commercialize and promote. Currently, the person in charge of housing that has this certificate is not only the owner, but also the agency that advertises said properties. What is a Certificate ......

More than half of the claims of tho...
Real estate news, Claims rejected mortgages clauses on land.

The bank has rejected 60% of the claims it has received in terms of land clauses in the first quarter of this year, affecting almost half a million claimants (around 463,000 customers with more than 2,000 million). Although the bank has insisted that many of the claims do not ......

Finally came the essential regulati...
Finally came the essential regulation of the real estate sector for better consumer protection

The regulation of the real estate sector was a pending issue for more than a decade and the Official College of Real Estate Agents has been working since then to make this a reality, for the benefit of Andalusian consumers. It has already been commented on multiple occasions that "The biggest investment that a ......

Types of lease contracts according...
Types of rental contracts by duration

There are different types of rental contracts depending on the duration of the same and each of them has specific characteristics. In this way, we can find three models: Lease of housing for habitual residence. Seasonal lease. Lease for tourist use. The owners must know the properties of each one to guarantee ......