Are you going to rent your house? Find out if your tenant is a defaulter and avoid problems

The real estate market in Spain is boiling again and one of the sectors that has recovered best from the crisis has been the rent and figures show this. In the first quarter of the year the average price of rental housing increased by 5,9% to stand at 7,93 euros per square meter per month, which has been the highest increase recorded in the history of the index since First quarter of 2007, according to data from Fotocasa.

But this boiling of rent in Spain has a downside. On Wednesday, the number of launches – to deprive a person of the physical possession of real property – rose to 17,055 in the first quarter of the year, a 2.2% increase over the same period of Year and the first increase in year-on-year terms in seven quarters. And what does this have to do with rentals? Since all the increase that has occurred is due to the increase of those applied to rent (+ 5.8%), and which already account for more than half of the total.

So how can the landlord protect himself against possible default in the future? How can you tell if your future tenant is a defaulter? Experian, the global information and data analytics solvency information company, has reached an agreement with the FIM Tenant File to provide transparency in the rental market, helping individuals and companies to make decisions.

The final objective is to prevent delinquency by analyzing the financial profile and payment behavior of potential tenants, which allows, among other things, to adjust the offer to the renter’s characteristics.

With this collaboration, companies try to avoid future frictions between landlords and tenants by intervening at a key moment, such as the beginning of the relationship. Real estate professionals will be able to access the information necessary to assess, at the time of rental, the risk profile of the client and reduce the risk of the decision on who is rented the property.

As reflected in the latest FIM study on delinquency of leases in Spain, delinquency has increased at national level by 8.49% in 2015 – percentage change from the average amount of delinquency on leases. And Autonomous Communities such as Murcia (17.28%), Madrid (11.23%), Catalonia (10.9%), Balearic Islands (10.84%), or Basque Country, with 10.3% Greater percentage increase of defaults than the national average.

In order to carry out the study, the FIM has used its own file – registered in the Spanish Agency for Data Protection under registration number 2091551065 – which is nourished by information provided by landlord and professional users as well as information collected in sources Public access.

Experian commercial director for Spain, Luis Diez Vega, is convinced that “this agreement between Experian and FIM will help strengthen the rental market in Spain.” “The more information available and solutions we have, the more dynamic will be the rental activity in our country. Data processing through analytical techniques and solvency analysis offers great opportunities to boost this market and allow new customer segments to access rental “, Add.

FIM and Experian are united with a common goal, combating and reducing delinquency in urban leases.We have made available to real estate professionals a consultation tool that will allow checking the financial profile of all tenant candidates, minimizing the owners “Said Sergio Cardona, Director of Studies and Quality of Diligent Tenants’ File (FIM).” This information will enable them to prevent delinquency, deterring professional defaulters and avoiding non-payment incidents.

 

Source: Economista.es