Who will buy an apartment for investment is expected that when the rent, the tenant is a paying on time and that does not do damage to the property.
Usually the tenant pays three month's rent as a security deposit advance / deposit. But recently a new formula has been inserted into the rental market.
And 'the policy that guarantees the owner against the risk of default by the tenant. It is usually the same real estate agency to suggest that the insurance contract, as an additional service.
It is an insurance that covers 12 months of non-payment of the monthly rent, the payment of damages, and legal fees for the release.
So far so good!
The basis is that the contract must be signed by both the landlord by the tenant.
The first waiver of the deposit (and should not manage / keep the money of the tenant), the second only pay the insurance premium which usually hovers around a month, one month and a half of the rent (thus saving compared to the three months above these).
The sales channels of these policies, we said before, passes through the estate agents, especially real estate franchise networks, or through conventions and / or agreements between Insurance Companies, Banks and Associations.
The types of insurance used are two: the surety policy and the policy to protect the pecuniary loss.
Rely increasingly important to financial intermediaries known and solids, to avoid scams, that have already occurred, of rascals who have lost their tracks immediately after the receipt of the insurance premium, paid by the tenant in advance.
As for the owner the alarm bells should ring when, for example, the financial intermediary lends itself to cover a tenant who does not have the necessary guarantees of solvency.
Difficult for a Bank / company / Financial "serious" you face as a guarantor in such cases.
Alex Gaetani
Can you elaborate with the following books: