Given the situation we are going through, it is worth remembering some of the legal mechanisms that can mitigate or reduce what owners fear so much (and rightly so) as is non-payment.
Although there is a great demand in the housing rental market, driven in recent months due to the covid crisis, we must exercise caution more than ever, since many of these tenants come (and allow me the expression) “bounced” of other real estate; on many occasions because they have been evicted, they could not continue paying the rent, or they have not reached an agreement to modify the conditions of the contract. These are some of the many reasons that have seen rental traffic grow exponentially in recent months.
Therefore, it is necessary to carefully select the people to whom we entrust our property and ensure, to the extent that it is in our hands, compliance with the obligations arising from the lease. Below, I summarize some additional legal advice and mechanisms (allowed by article 36.5 of the Urban Leases Law -LAU-) for this purpose:
Ensure the solvency of the potential tenant
In this regard, it is necessary to request the most recent payroll or income statements to verify that it is a person with sufficient periodic income to meet the agreed rent and income.
On the other hand, there are other mechanisms such as checking the data of the potential tenant in the delinquent records that currently exist, such as the idealista database of delinquent tenants.
Additionally, those tenants who are not willing to face certain required guarantees (such as an endorsement, or a joint guarantor) may not interest us, since they already demonstrate their poor solvency or lack of security when signing the contract.
Take out insurance for non-payment of rent
If we want to stay calm and forget about unpaid rent, possible damage that may be caused to the home …, and we do not mind losing a monthly rent (approximately) then it is 100% advisable to sign an insurance contract for non-payment of rent.
Having a good rental contract is essential, in it it is highly recommended to include criminal clauses in case of non-payment of rent (such as interest for late payment or charge of extrajudicial expenses), annex with photographs of the house to attest to the state in which an inventory of the leased furniture together with the property, etc. is found at the time of the lease.
It is also necessary to include all the parties to the contract in it and establish a joint and several liability regime (for example, if it is a couple, that both sign the contract because the more people sign the contract, the more people become responsible for it. ). To do this, it is advisable to draw up the contract with caution and go to a good professional to draft or review it to ensure that it meets the needs of each case.
Apart from the mandatory deposit, it is highly recommended to demand a bank guarantee from the landlord, if possible at first request and without benefit of excursion.
Unlike the mandatory bond, this additional guarantee is not a monthly rent, but is an amount freely agreed between the parties (without exceeding two monthly rent). This clause must be included in the contract with the exact amount to be delivered as a security deposit.
Another difference with the bond is that the deposit should not be delivered to the relevant body in the Autonomous Community, but is kept by the owner. This guarantee deposit is returned at the end of the tenant-owner relationship, as long as there are no outstanding debts, there has not been a contractual breakdown and there are no damages to the apartment, caused by misuse of the property.
This is a third person outside the lease contract who, in the event of breach of the same, becomes jointly and severally liable. In this way we increase our collection possibilities in the event of a possible breach.
Of course, it is advisable to go to an expert to carry out these procedures; as always, it is better to go to the doctor to prevent illness and not when you have already gotten sick.