The new Housing Law includes a compendium of measures that, although it aims to ‘force’ the rental of empty houses, also has aspects that are aimed at protecting, not only the tenant but also to the figure of the lessor.
The specialists in real estate management at The Simple Rent explain how the proposed measure will especially affect those owners with the new insurance for non-payment of rent.
First, the assumption covers the young tenants who have requested the rental assistance of 250 euros per month also included in this new housing law. It will be the Government who will create and finance a non-payment insurance for these people, who request it, in case of need and that to the owner ‘guarantees‘the payment of the rent for one year.
In this sense, Sonia Campuzano, CEO and founder of The Simple Rent, warns that “This guarantee that is offered to the landlord with the rental coverage for one year has a limitation on the insurance fee, and that is that it may not exceed 5% of the annual rent. That is to say, for an annual income of 7,200 euros, at a rate of 600 euros of monthly rent, the fee for said insurance may not exceed 360 euros. It is still pending to know the details and if the landlord is also fully protected with this measure in case of rentals with a high rent”.
In the case of rental payment problems, it is not yet defined whether it will be the tenant who activates the non-payment insurance or the landlord can also do it. This question is important to know exactly the degree of protection offered to the figure of the owner or intermediary who rents the house.
With this, an additional ‘guarantee’ is incorporated when making a rental contract, the lessor being able to request the tenant the necessary documents to confirm that this non-payment insurance contract with the Government is active at the time of signing the contract.
For all these reasons, the figure of the real estate manager, with a legal team behind it, it is key to keep up to date with all the changes that occur in the field of housing. Minimizing risks reduces the concern of the landlord and that is the task of specialists as recommended by The Simple Rent, who indicate that there are also other types of insurance that cover the owner, beyond the group of young landlords.