In contrast to the notoriety achieved by the news on real estate operations starring investment funds, companies dedicated to the residential business and financial institutions, the real picture of the rental market in Spain is very different. It is the small and medium-sized owners who dominate the leased housing stock, with a share of more than 80% according to the CIS, while some sources such as Sareb reduce the proportion of large investors (socimis and investment funds, among them) to less than 4%.
Among this majority of private owners there is also a high percentage of pensioners (27%), as revealed by some surveys, in contrast to the large holders (10 or more properties) with whom this activity is often associated. In fact, 70% of Spanish people's savings are generally allocated to a real estate market that has more than five million small savers who supplement their income with rentals, according to the 'Household Wealth in Europe' report.
For this profile of landlords, counting on the umbrella of an entity specialized in insurance against non-payment of rent gives them the peace of mind of having guaranteed not only the monthly rents, but also the possible debts of supplies contracted by the tenant.
In addition, it offers coverage against possible legal costs, as well as compensation for vandalism resulting from an eviction. It also allows the recovery of monthly payments lost due to fire or explosion in the dwelling.
There are many other small problems or doubts that can be solved thanks to the telephone legal advice service included in the policy.
News Source: Adn del Seguro 08/03/2021