Renting a home is an excellent way to obtain profitabilityespecially if you have an empty property that you are not using. However, many owners are reluctant to do so due to fear that the tenant will not pay the rent or, in the worst case, that you will not be able to recover your home at the end of the contract.
This fear is not unfounded, since According to the real estate portal Fotocasa, 3% of owners with two homes prefer to keep them unoccupied faced with the risk of non-payments or legal problems.
But how can you ensure that the future tenant will be able to make the payments without causing you worries? The key is to make a prior analysis of the tenant’s solvency. Requesting the appropriate documentation will give you peace of mind that you will be able to collect rent on time and avoid possible complications.
In this article we explain what documents you can request to guarantee that your tenant is financially reliable.
The last three payrolls: the guarantee of a stable salary
One of the most common documents that landlords request from tenants before signing a lease are the last three payrolls. This document is key to knowing the salary that the tenant receives, as well as their length of service in the company and the type of contract they have. These three factors will help you evaluate whether the tenant will be able to pay the monthly rent.
What should you take into account when reviewing payrolls?
- The salary It must be enough to cover the rent without compromising other basic needs. Ideally, it should not exceed 30-35% of monthly income.
- Job seniority It is a good indication of stability. If the tenant has been working in the same company for at least a year, the likelihood that they will be able to maintain the long-term rental increases.
- The type of contract It is also important. Permanent contracts provide more security than temporary or project contracts.
Requesting payslips will not only allow you to make a quick assessment, but will also give you a solid starting point to analyze the tenant’s creditworthiness.
Income Tax Return: ideal for self-employed people
If the future tenant is self-employed, assessing their ability to pay may be more complicated. Unlike employees, the income of self-employed workers tends to be more variable and is not always clearly reflected in their monthly accounts. This is where the income tax return.
The income tax return will provide you with overview of income that the tenant has had over the last year. It is the best document to verify that your income remains stable over time and not only in the months prior to signing the contract. In this way, you ensure that you will be able to pay the rent on a sustained basis.
Work life report: evaluate job stability
The work life report is another key document that you can request from your tenant. This report, which provides the Social securityshows the complete history of the jobs that the tenant has had throughout their professional career.
Why is this report important? Because it will allow you to know the tenant job stability. If you have gone through many jobs in a short time, it may be a sign of financial instability. A long-term employment history shows that the tenant has a solid track record and is less likely to have trouble paying rent in the future.
Consult the file of defaulters: ASNEF and Bank of Spain
In addition to the documents that verify income and job stability, it is also advisable to consult the defaulter fileslike the ASNEF or the Bank of Spain risk report. These records show whether the tenant has unpaid debts or outstanding loans.
The main advantage of these reports is that they are free. However, it is important to keep in mind that you can only request them if the tenant gives you their explicit consent. This step is key to knowing if the tenant has previous financial problems that could affect their ability to make new commitments, such as paying rent.
Other documents that can provide additional security
In addition to the aforementioned documents, some owners also choose to request additional guarantees such as a bank guarantee or hiring a rent nonpayment insurance. These measures provide extra support, ensuring that you will receive rent money even if the tenant does not pay.
- Bank guarantee: The bank agrees to cover the payment of the rent in case of non-payment.
- Non-payment of rent insurance: Insurers offer policies that cover the risk of non-payment and possible legal expenses.
In conclusion, request key documents and avoid unnecessary risks. Renting a home can be a stable and profitable source of income, but it is essential to take precautions to avoid problems with delinquent tenants. By requesting the appropriate documents, such as payroll, income tax return, work history report and consulting the defaulter files, you will be able to have a clear view of the solvency of your future tenant.
Remember that verifying these documents will not only give you peace of mind, but will also contribute to a safe and smooth rental. If you follow these steps, you will be able to rent your home with greater confidence and enjoy a calm relationship with your tenant.
Source: www.vozpopuli.com
