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liquidity problems are aggravated as the body takes the economic crisis, following the health alert (with permission of recurrences) and that has in renting one of their areas more delicate. In particular, this week the Association of owners of rental housing (Asval) alerted that during the months of confinement and delinquencies were soaring from 5% to 15% and pointed out that this situation will get worse “in the coming months, if no action is taken”. Before this delicate context, what options do you have the owners and the tenants?
From DAS Insurance s advise homeowners to get in touch with their tenants “to know first hand their economic situation and to identify if there is a risk of non-payment or vulnerability”. If it is confirmed that the tenant has hampered to comply with the payments from this insurance company have advised raise potential postponements temporary or extraordinary. To Thomas Philip, an attorney in the real estate department of Legálitas, “in the current situation there is recommend to both parties to reach agreement” and it warns about “a true jam in the courts after being unemployed for the confinement”. In this sense, has warned that a process of deshaucio can take “over a year” and pointed out that, in these last few weeks ,has brokered many “agreements between owners and tenants” , apart from having received “thousands” of queries about it.
what Moratorium or reduction of rent?
in this regard, Philip has spoken of two types of agreements: for rent reduction or moratorium . In the first, has been explained to this attorney, this is to reduce the rent temporarily to an extraordinary situation like the current one by the Covid-19. In the case of a moratorium, it may mean that you do not pay the rent or to pay a smaller amount for a few months, and then recover that debt gradually.
Insurance of non-payment
In any case, compared to the agreement between landlord and tenant – always desirable for the expert consulted – from DAS Insurance put on your table a product with a growing predicament: the Insurance of non-payment of Rent . From this insurer explained that, with this tool, what you are looking for is to cover the monthly fees that may be unpaid prior assessment of the risk of the tenant, (a staff member against a student, for example). In addition, this type of insurance includes care of counsel for the case in which the lessee is obliged to start an eviction process or ask for compensation for possible damages in the property.
To Philip (Legálitas) insurance of non-payment they are often to ensure between 6 and 12 monthly installments ; and it is a product that can be appealing to the fear of many owners, the economic crisis derived from the pandemic risk to their income. In this regard, has been added that has been pointed out that there are owners that put “much interest” in ordering payroll of their future tenants, applying for several monthly payments as a deposit (obligatory only can be required to a) or “try to rent to officials.”
Government subsidies
Another option for residents are the extraordinary supports from the Government rent, extended until 30 September and that consist essentially of the extension for six months, the automatic extension of the contracts lease complete in this period, or the moratoriums on rents and mortgages ; as well as other measures such as the collection of the social bond or the guarantee of basic supplies (light, gas and water). On the other hand, the stoppage of evictions, and it has been extended until the 2nd of October.
As has explained the lawyer of Legálitas, these aid distinguish “two scenarios” if the owner owns more than 10 urban real estates (funds vultures, banks…) or less (individuals). In the first case, explained Philip, are “forced” to give to choose the tenant from a reduction income of 50% for four months or a moratorium for the same period, to pay for it later in 3 years.
In the event that the owner is an individual – read with 10 or less urban real estates of your property – this expert proposes as an option the loans ICO “in reality just take two or three weeks running,” and are subject to the “situation of vulnerability” (ERTE, unemployment, cessation of activity…) of the tenant has occurred as a result of the Covid-19. “It is loans zero interest , to pay from 6 to 10 years, which allows to pay up to six monthly payments and , of course, you don’t have to be the owner because then you have no right to this aid,” he says about the possibility of owning a property in a different location.
From the Association of owners of rental housing (Asval) highlighted that in an analysis performed over 30,000 homes just 1.3% were interested in availing of the credits ICO (one of the measures of the Government to try to relieve the hurry of many tenants). A trial similar offered aid of the autonomous community for rent.
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