Defaulters are one of the main risks of property owners that want to get a profit via renting. One of the worst situations the owner may face is that the renter that does not pay decides to stay in the house, so they continue using and deteriorating it, without generating revenue.
What can you do in such a situation if your property is in Spain?
The first thing you need to do is notify the debtor. It is unlikely that they do not know they have not paid you, but it may happen.
You should do the notification by a burofax. Now you may wonder what that is. Burofax is a kind of certified fax that exists in Spain and is accepted in court as proof. By using it, you have a way to prove that you notified the renter that he or she has a debt.
Absurd as it is, if you do not do it, you would not be the first creditor that does not get the interests of a debt because you cannot justify the notification of the debt to the debtor.
However, let’s face it, if the renter is not paying, the burofax has little chance of working. Wait 30 days, and if you do not get an answer, then you will need to make an action of eviction, for which you will need to present in court the rental agreement signed by the two parties. Also, attach the burofax so you show you already let the debtor know the debt existence.
The court will produce an admission document for your lawsuit. Then, the renter will have 10 days to pay, leave your property, or show why he or she thinks they do not need to pay that amount.
In this last case, there will be a trial.
What else?
Since trials are always expensive, there are some other things you can do in advance.
For example, you can ask for a deposit. In Spain, the law states that you can only ask for one month in advance as a deposit in cash and a warranty equivalent up to two months.
Since this is not a very high standard, you can take out an insurance policy that covers your tenant’s defaults. Here there is a big world of options. Our best recommendation is to just study the market, compare offers, and decide.
Conclusion
If you inherit a property in Spain, we recommend that you ask an expert and get informed about the details of renting law. Tenants enjoy a protective law that means some risks for the owners.
If you would like information on Probate House Clearance, please get in touch.