In recent years, rental contracts have been affected by delinquency by 7%. A piece of information that is extracted from the file of delinquent tenants and that is beginning to worry about economic uncertainty. This has given rise to owners looking for measures that can protect them, such as rent non-payment insurance.
Between 2019 and 2020, the percentage rose by just over 4%, so the problem is getting worse. The health, economic, energy crisis, inflation, unemployment or the closure of companies are just some aspects that must be assessed. Obviously, the situation, at the moment, is not the most favorable and this also affects the real estate market.
The main reasons to have insurance to protect against non-payment of rent
Any landlord may recover unpaid rents if he hires rent non-payment insurance. In addition, if the tenant has caused damage and the deposit does not arrive to cover the debt, this policy is of great help. In the event that a person has several homes or buildings, whose objective is the rental of homes or premisesyou can always have greater benefits.
Today, we must take all possible precautions, because even if we are presented with work contracts or a series of guarantees, people’s circumstances vary. We are all subject to changes that can alter our pace of life and have a negative impact on our economy.
The bail and the Bank guarantee They are important figures in dealing with non-payment. Initially, these options are a collection guarantee; However, rental insurance has begun to gain more prominence in the last decade, because its competitive advantages are greater.
So much so that the tenant, if he wishes, can also hire this policy to ensure the payment of the fee, if adverse circumstances arise, such as unemployment or disability. In any of the cases, the beneficiary will be the owner, however, if an eviction occurs, the tenant will have the possibility of having legal protection.
solvency of the tenant
The insurance company usually carries out a study on the solvency of the tenant. This filter is of great help to anticipate the operation or signing of a contract, in order to avoid possible risks in the future.
Protection against default
One of the biggest advantages is being able to recover the money from unpaid installments up to 12 monthly payments. In addition, there are occasions, in which a charge could also be anticipated if there is no judicial resolution or final sentence. However, it is important to read the clauses and insurance coverage well to know how to proceed.
legal protection
Finally, it should be noted that the landlord is protected from a legal point of view, because legal defense is covered. As we well know, looking for a lawyer specializing in the matter, paying the fees and waiting for the trial to be resolved or the tenant to pay the debt can take a long time.
In short, in cases of doubt, it is best to put yourself in the hands of professionals, such as the Mutual Owners Group, a pioneer in offering this rental default insurance in Spain. In addition, thanks to a system of scoring own digital, they can analyze the viability of a tenant in a matter of minutes.