Non-payment insurance helps to encourage rent
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