How does it work and what insurance cover about unpaid rent?

 

Where bank guarantees before or personal guarantors are asking, now formalize rental insurance for better coverins. This new formula for homeowners backs are covered against possible defaults, is an increasingly used alternative that has also served to stimulate the market and allow access to rental housing tenants to remain solvent, it had no economic capacity enough to enter in your financial institution a significant amount of money in the form of guarantees

and, what covers me? Well, firstly it is a filter to select the tenant. Before signing the contract the insurance company or the realtor who intermediate in the policy make a feasibility study to ensure that the candidate is solvent

After signing the lease, it is usual that the insurance covers the payment of rents due up to a maximum of 12 months, and in some cases, unpaid bills are ahead, although it depends on the insurance

In addition, many offer legal defense to the owner to possible civil or criminal disputes with the tenant. It is also common that protect against property damage and theft of the property of the continent that may be caused by the tenant

The cost of this insurance is typically between 3% and 5% of annual income, ie, to an apartment where the rent is 700 euros per month, would cost between 252 and 420 euros per year, points as the real estate agents in the Costa del Sol InmoLaSirena

When should report the default?

Notice is paramount when that occurs so that the legal department of insurance and make the appropriate arrangements present the eviction. Also, if that is not the default complaint no progress occurs

After exhausting amicably, and filed eviction and rent completed claim within 3 months duration, the insured may request the insurer a preview of all income and unpaid until such time exceeding the franchise, which is usually the month deposit

What if I report late? After 45 days from the date of default, the insured forfeits the advancement of the rents and until there is a judgment of eviction and housing recovers

An option upward

Insurance unpaid rent is gaining popularity among homeowners. In fact, six out of 10 tenants requires additional guarantees beyond the bond and the default policy is the most demanded and has grown more in the last year, according to data from the Spanish observatory rental insurance ( OESA) , and, it seems, are happy. nearly 70% of homeowners who entered into rental insurance renews what they value most are offering coverage (27%), cost (22%), speed of response (18%) and the tenant's credit report (12%)

Can the tenant change the locks on her apartment to rent?

The tenant may change the locks of the apartment for rent

when a tenant to rent a new apartment moves always arises whether to change the lock, because it may happen that the previous tenants kept a set of keys. from api of Catalonia recommend changing to a matter of safety and tranquility. further indicate that the new tenant has every right to do so

This explains that the home is rented for use and enjoyment. in this sense, indicates that you can change the locks without permission and without informing the owner. otherwise, it is deemed appropriate and convenient let them know to maintain a positive relationship even more clear that it is not mandatory

if the lock is changed, another question that arises is whether to give a copy of the new keys. the answer lies in legislation. the Spanish Constitution states in Article 18.2 that the domicile is inviolable

so being rented flat the residence where you live, not the owner, if he decides to enter it without your permission, would be committing an offense of burglary. addition, Article 202 of the penal code states that the individual does not live in the dwelling can not be accessed without explicit consent. therefore, the owner has no right to demand a copy of the key to the new lock

in fact, if you're one of tenant rights, and probably most important, is that the owner can not access the property in any case. just at the time that the landlord is leaving the floor, and with prior permission of the lessee, can enter the house to check the status of it and make the necessary repairs. In addition, the tenant must give the keys to the landlord and the previous lock

Does the landlord can change the locks?

the landlord can not enter the dwelling without permission and for any reason. at the same time, you can not change the lock. "Is a completely illegal action that many homeowners incur when tenants fail to pay the rent receipt or made a blight on housing," stress from api of Catalonia

precisely based on this recurring reality, the law of leases has undergone some changes so that the owner does not see the need to "take the law into their own hands" and expect sufficiently effective legal tools to put solution to this awkward situation

Purchase to lease what one in five new homeowners does

Rental force

• Experts detect gross returns ranging from 4.6% to 8%
• Many new investors are buying home cash

"There is a cultural issue, It is pure and simple economics." Such confidence responsive sources a consultancy to the question of whether or not there is a change of mentality that explains the current rise of rent. Indeed something moves on the market.'s hard to detect what the statistics, as there are no official studies to measure rates of leases in Spain and there is not even a holiday census. Indeed, the Spanish government is studying the best way to develop one, but the project is still building, according to sources from Obras Publicas.

The only official for years in Spain is only 12% or 13% of households living in rented, while the remaining 85% own. These percentages contrast with the European average of 70% of owners and 30% of renters and away from reality in Germany, where more than half of the population chooses to rent.

With or without the cultural factor, the arrival of the economic boom of the post-Franco Spain and, above all, the adoption of the euro and the free bar credit, caused all the economic parameters advise buy and not rent. The benefits were for the two components of the market: supply and demand.

From the demand side, the massive entry of baby boomers into the labor market made ​​him shoot the housing need. In this context, the emergence of mortgage financing to minimum interest rates and repayment terms in eternal appearance made ​​affordable purchase for almost all segments of the population.

Then came a time when a housing similar income requesting his own rent was equal to the mortgage payment to be paid if the house was acquired, which helped it coined the famous slogan: "is that the same money, it is better to buy than rent, so no money is pulled. "

For although it is true that the purchase has to be paid the first year a number of expenses that the rent not required (entry, taxes, notary, registration and management services, among others), dealing with banks and finance 100% if the property value was not available prior saving enough.

Automatic adjustment

And all spurred by a bullish market price revaluations two digits each year and a system of state aid (VPO) and tax deductions that only invited to buy and rent seemed to have forgotten.

On the supply side only need to remember that Spain came to build more homes than Germany, France and Italy together and have an empty apartment was one of the most profitable investments possible, as it was thought that the price increase would not stop ever.

Then came the crisis and the bursting of the bubble ended with that other mantra of "housing never low." At the moment, however, everything seems to conspire in favor of rent .

The houses have become cheaper on average between 40% and 50% since it peaked (as the statistic to see) and gross rental yield stabilizes at around 4.6%, according to Bank of Spain .

Other sources say that the financial sector in certain neighborhoods with high demand for leasing, that gross return rises to 7% or 8%, "which in net terms gives a gain of 6.5%. No financial product can compete with that. " These two factors (cheaper houses and interesting perspective yields) are those who are leading that one in five new homeowners are buying homes to rent r, as confirmed by all sources consulted sector.

Moreover, this is that while the prices of home sales fall will not stop at least in the short term, income closed 2013 with an average decline of 3.06%, the study of Pisos.com, and such as Idealista.com remember, your tendency is to stabilize throughout this year. In fact, in some neighborhoods Sought leases Madrid or Barcelona and regrow.

So, for those who have savings, "homes on the market at very attractive prices that are being purchased without a mortgage and are as tenant, are beginning to offer benefits," recalls Luis Corral, CEO of Foro Consultores.

Those who are now thinking of renting either by obligation (their income did not allow them access to home ownership) or conviction (opponents of long-term debt), also have more advantages than in the past years. On the one hand, an abundant supply of choice, resulting in increased price competition and, secondly, a plan for public support in the making. Whether this improvement will continue to not rent to reach European levels is anybody's guess, but that largely depends on recovery speed and the new mortgage banking policy.

Who will buy house this year

Investors: solvent demand is beginning to see that the setting is at an end and the time has come to buy. Many of them rented.

Foreiners Come to Spain great opportunities. They prefer the coast and the most exclusive areas of Madrid or Barcelona.

Replenishment: Families who need a larger or better located apartment, although most current sell to buy.

New homes: The key segment, but is is the most dependent on the economic situation.

8 reasons to trust your rental property to a realtor

Friday, January 3rd,

Instruct an estate the process of finding a tenant for the apartment you want to rent out can save the owner time and work. For example, the real estate consultant about the price of rent, can make a more comprehensive selection, can arrange the collection of the monthly or manage rental insurance

What does a realtor in the process of renting a home?

- Search the tenant: the amount of people who are informed that this apartment is for rent is much higher than that see the ad in the street, and rent much earlier. the realtor has photos of the floor and makes a screen and the prospective tenant. if an individual is interested in seeing the floor are the property of those who are responsible to teach and not have to be outstanding to adjust schedule

- Select the tenant: query any database delinquent tenants requests and collects all the necessary to ensure that documentation is a solvent tenant. So asks a bank guarantee, payroll for the last three months, and checks that all this documentation is real

- Advisor on the rental price: Agencies know what you can ask for the rent of your apartment as well know the market

- Advisor on the rental agreement: although it seems a simple thing to do things right, a poorly written contract or not following the law can be a problem for the owner. Agencies are to date with the latest updates such as those contained in Measures Act Promoting Flexibility and Market Rental Housing which was adopted in June 2013

- Make the collection of the monthly payment if it is not done by bank transfer: this is long overdue in homes rented by students or by several people, each gets its share and then pay the full monthly payment on real estate

- Manages rental insurance to avoid and resolve situations of default

- Responsible of Payment of water bills, electricity, gas ... This option is very convenient if you want to terminate supplies to give as high supply companies charge

- Dissemination of flat for rent in media, internet and social networks the floor

Of course the downside is that this has a cost. In some communities the realtor only charges the landlord one month's fee plus VAT but can also charge in half each half to the landlord and the tenant half. other will charge the full monthly fee plus 21% VAT each, landlord and tenant

Understanding the Rental Terms

The rental contract should include:


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Date and place where contract is created and signed
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Details of the landlord
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Details of the tenant
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Details of property being rented, including location, size and layout
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Length of the rental term
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Rent payable to landlord by tenant
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Signature of both landlord and tenant



The rental term may be any length up to five years. When the agreed term is shorter, the tenant can extend the contract to last five years if they wish to do so. If they choose not to extend the term they must give at least one month's notice that they do wish to terminate the contract as agreed. After five years, the rental agreement can be further extended for terms of up to three years.

The tenant is required to pay rent to the landlord in exchange for living at the property. The rent can be negotiated by both parties, and will usually be paid in the last or the first week of the month. The landlord should send the tenant a receipt to show that the rent has been paid, in order to avoid any future disagreements. Once the initial rental term is over, the rent will typically be renegotiated to take increases in inflation into account. Some landlords will increase rent annually, after the initial rental term, in line with the Consumer Price Index (CPI).

Repairs on the property are the landlord's responsibility, and will typically be done once the rental term has come to an end. Should urgent repairs be necessary, the landlord must inform the tenant in advance that there will be building work; if this disruption lasts longer than twenty days the landlord must reduce the rent that month. The tenant can make small repairs, especially if these are needed to fix damage caused by general wear and tear. Should the tenant wish to make large-scale alterations to the property, they will need the landlord's consent.

Renting Property in Spain

In Spain it is more common to buy a home than to rent one, and for this reason there are relatively few properties available for rent in Spain compared to other European countries. The limited housing market can make it difficult to find a rental property that meets your expectations. Finding a property is yet more problematic for young people, the over sixty-fives and immigrants, many of whom tend to have only a limited budget for accommodation. In addition, the demand for properties in Spain has recently increased: house prices and rental costs have doubled, particularly in popular urban areas. It is difficult to find official government information on the property market, and there are few reliable details on the number of properties available and the current demand.

Spain currently welcomes thousands of immigrants each year. This creates a great demand for rental properties and in turn increases rental prices. It is becoming more and more common to stay in 'bedroom cities': small towns located near large cities where more properties are available and rent is more affordable.

Over the last decade, the Spanish property market has undergone several changes. It is becoming more and more common for people to purchase property, rather than to rent. In recent years there has been a boom in the real estate sector; as the demand for homes increases, more and more homes are constructed as a result. This has also led to a significant increase in house prices.

The housing boom has created many jobs and contributed to considerable economic growth in Spain. However, it has also resulted in heavy reliance on the construction market, and increased debt as more and more families take out mortgages. These facts threaten the likelihood that the housing surge will contribute to Spain's long-term economic stability. As a result, the government has begun to implement certain measures to make this situation sustainable, and avoid a repetition of the mortgage crisis in the United States and United Kingdom.

In some ways, a housing crisis is already expected; increasing house prices have resulted in a rise in the number of people falling into arrears on their mortgage and rental payments. Banks will no longer grant loans or mortgages to people who are at risk of failing to make repayments; as a result demand for housing has fallen, and house prices have fallen accordingly for the first time in years.

In Spain, rental prices vary according to the location of the property. There is a huge demand for property in Madrid and Barcelona and thus prices here are high. These are big cities offering many job opportunities, and lots of people choose to live here to find work, although rental costs will constitute a large part of their expenses. Many other people choose to move to villages or small towns near to big cities which offer more affordable properties. These are known as 'ciudades dormitorio': literally, 'bedroom cities'.

To tackle the problem of price increases, some provinces have enacted laws that force the owner to rent out their property if it has not been occupied for more than two years. The government can request that the property be put on the market, or demand that the owner rent it out if there is a risk that the property will fall into ruin.

Also you can check-out our large porttafolio in Rental Properties around Malaga y La Axarquia