Fears that the tenant will fail to pay the rent or that the apartment might get damaged discourage many homeowners from renting out their property. But no need to fear, ShBarcelona has 6 tips to help reassure you regarding renting your home safely in Spain.
1. Select your tenant carefully
The best way to avoid problems is by preventing them from happening. Selecting your tenant is one of the most important aspects to keep in mind when renting out a property. If you wish to make sure that they can pay the rent every month, you can ask to see their pay slips and employment contract. This may be easier to do if the rental process is managed by a professional. Potential tenants usually feel more at easy showing his personal documents to a real estate professional than to an individual.
2. Request additional guarantees
In addition to the deposit covering possible damage to the apartment, the law allows for any type of additional security when signing the contract. Through this guarantee (eg the payment of one or two months of additional rent) you can cover the damage or non-payment by the tenant. The amount is optional and is agreed upon by the two parties.
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3. Request a guarantor
A guarantor is a third party who agrees to accept responsibility instead of the tenant. If the tenant does not pay, the guarantor will be responsible for the debt settlement. There can be two types of guarantors:
The personal guarantor: another person, usually a family member.
The bank guarantor: a financial institution that will be responsible for payments if the tenant does not pay.
4. Allow for mediation in your contract
This is a way to solve potential conflicts without resorting to legal assistance. In this case, you must add an annex to the contract which stipulates that in the case of dispute the decision will be made by an impartial person. Thus, in case the rent is not paid, the mediator may prevent you from having to take legal measures for reaching a solution.
5. Take out insurance to cover non-payment and damage
Buying insurance allows the tenant to avoid paying the deposit or guarantee initially requested. This can help out the tenant to make the decision when he/she does not have a large amount of savings, encourage him/her to rent. Insurance companies may cover several risks such as non-payment of rent, damage to the apartment, and legal fees in case of disagreement.
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6. Renting out your apartment through a real estate agency
The real estate agency would take care of the apartment and act as an intermediary between tenant and owner. It would also take care of administrative procedures, monitor the payments and solve all kinds of problems that could arise during the tenancy.