According to a demographic survey carried out by the Barcelona city council, more than 38% of its inhabitants live for rent . Despite the upward trend of this way of life, in the city there are still 1.52% of uninhabited homes according to data published by this same source.
To add even more fuel to the matter, numerous studies confirm the growth in profitability provided by rented flats for their owners, reaching gross returns of up to 7.52% in neighborhoods such as Nou Barris, or 6.67% in others as Sant Martí according to piso.com.
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So why are homeowners still reluctant to put their vacant homes on the rental market ? The high returns achieved and the growing demand for this type of housing would lead to this, however, the truth is that today there are still many owners reluctant to leave their home in the hands of strangers. Why?
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The fear of defaults is one of the main reasons.
Insurance for non-payment of rents
According to figures provided by the Spanish Rental Insurance Observatory , in 2017 there was a 31% increase compared to 2016 in terms of contracting insurance for non-payment of rents. The hiring of this type of services gives the owners a certain security when it comes to putting their empty flats on the market.
According to data published by Mapfre, almost 20% of the owners with a rented home have some type of insurance for non-payment contracted.
How does default insurance work?
First, the insurance company must approve the tenant for the formalization of the contract . To do this, it will carry out a feasibility study to verify its solvency. Once the tenant has passed the filter, the insurance company and the landlord will sign a contract by which the insurance company agrees to cover defaults up to a maximum of 12 monthly payments .
Non-payment must be notified just as it occurs. There are insurers that can even advance unpaid bills .
Regarding the coverage offered, these can be complemented with extra services of criminal defense, claim for policies and damages, maintenance or telephone legal assistance.
How much does insurance for defaults cost?
Depending on the coverage offered and the price of the monthly rent, the price of insurance for non-payments can vary a lot. To get an idea, for a rental of 600 euros, contracting insurance for non-payments can mean between 250 and 400 euros per year .
* An alternative to rent is without a doubt that of sale. In addition to providing us with an important immediate liquidity, the sale is the most effective alternative to free ourselves from all the expenses and responsibilities that the maintenance of a house entails.
If you have an empty apartment and you are still hesitating between renting and selling it , put yourself in the hands of professionals. In Vivendex we will study the situation and characteristics of your home and we will carry out a study without obligation on the different possibilities offered by each alternative
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