The increase in the supply of rental housing, coupled with the suspicion on the part of landlords when selecting their tenants in the face of the rate of delinquency that continues to grow is causing more and more real estate agents to intervene in the lease management.
Increased delinquency in rents
The demand for rentals is getting higher as the purchase has become more complicated. In addition, the supply of flats has grown after the change from tourist rent to residential and there is a gradual drop in rents, but the risk for landlords is greater due to the economic situation of tenants due to the Covid-19, which causes delinquency to increase. Choosing a good tenant, who maintains the property and makes its payments on time is very important for landlords, who are increasingly choosing to turn to specialized real estate agents to make them manage the rents, as we convey more security .
To this situation is added that it is getting closer to the state of alarm, next May 9, a date on which it is expected to expire the protection against tenants associated with the Covid- 19 and will end both the current anti-eviction umbrella and the automatic extension of leases, opening the door for some homeowners to want to change tenants and hire services like ours in the face of the growing risk of defaults.
Real estate agents, the solution for homeowners
Real estate agents professionalize everything surrounding the management of rents, from the selection of the tenant to the collection, through the management of cases in which the tenant stops paying regularly. Unfortunately, the trend seems to go further. Given the rise in unemployment, the 800,000 people who are still subject to an ERTE and the slowdown in the recovery, everything suggests that delinquency will continue to rise in the short term.
This is why the fear of homeowners not being charged makes them hire the services of real estate agents. If the mishap is resolved in a few weeks because the tenant wants to pay but can not, the contract is still in force and some aid or moratoriums come into operation with the aim of keeping a tenant who is willing to pay because, for performance purposes , the most profitable thing is for the tenant to stay as long as possible.
When defaults are due to other causes and this “willingness” to pay no longer exists is when all the machinery of real estate agents comes into operation. In our case, most homeowners have managed default insurance which offers them extra security in these situations, covering months of default, court costs, damage to the apartment, and so on. Finally, if the tenant decides not to pay, we will initiate legal proceedings.
However, the most important work is what is done before signing the contracts, analyzing to the millimeter the profile of tenants interested in a property. This is where massive data screening occurs to ensure the solvency and personality of the candidate and prevent future defaults. Our service is based on making a good selection of the tenant to detect what you want and can pay. To do this, we performed various techniques that provide us, apart from their financial solvency, their personal profile, in order to identify and predict future cases of non-payment. In this case, all the aspects that the future tenant can provide us are very important, be they their income, guarantees and the minimum income rate for each flat, of which a maximum of 40% of the property rental income.
If you need information on this or any other topic, you can contact us through our website or by calling us at 93 458 83 05.