Renting a home is a good alternative to have an additional source of income. In fact, the rental price has risen considerably compared to previous years. The main pitfalls are non-payment and the fear that tenants will end up causing serious damage to the property.
Having a specialized manager is the best option to rent your home, since, even if you consider that it is the ideal time to make your assets profitable, there are certain risks when renting a home.
Renting the home without a proper lease
A poor contract can lead to serious problems with tenants, such as the inability to demand payment of rent.
Know the differences between a seasonal contract and a regular residence contract. What clauses differentiate them and what clauses can protect you. You must draw up a proper and well-drafted lease. At DFLAT Madrid, with more than 1,500 contracts signed per year and founded in 2004, we bring that experience.
Not checking the solvency of the tenant
Knowing or checking the solvency of future tenants is one of the first tools that a real estate professional uses to choose the best candidate, confirming if they are solvent or if they have been delinquent.
Traditionally, a bank guarantee has been used as a guarantee that offers greater security to the owner. However, the difficulty and expenses involved in granting a guarantee have made it fall into disuse. Our clients come from business schools and consolidated companies; In general, DFLAT Madrid does not need or request a bank guarantee from our client companies.
Breach of lease
If the tenant does not comply with the terms of the lease, the landlord may face legal problems to recover the property.
The tenant could cause damage to the property, which could result in expensive repair costs and lost rental income while the repair is being done.
Rental payment problems
If the tenant does not pay the rent on time, the landlord may face financial and legal problems to recover the money owed.
DFLAT does not need or request a bank guarantee from our client companies. We have no problems or inconveniences with delinquent tenants.
If the property remains vacant for extended periods, the owner not only assumes squatting risk, but may lose rental income and face additional costs such as property maintenance and taxes. DFLAT has an occupancy of 97%, so your home will always be watched
Management errors and trust problems
Lack of transparency or concealment of information. In our case, our agency has extensive experience managing seasonal housing rentals in Madrid, which is why we offer timely advice, full management of the rental contract and avoid risks when renting an apartment.
More information for investors in Real Estate
Visit our page for investors interested in Golden Visa and investors interested in investing in Madrid, or this one if you are already an owner.