`My tenant does not pay the rent´. No proprietor ever wishes to have to say these words. Owners are often scared in case they have to utter this phrase when they put up their property for rent. What can be done if this situation arises? Which proceedings must we take against the tenant were he/she not to pay the rent of our property? In Spain, there is increasing concern regarding failure to pay the rent. This can be proved if we look at the growing number of insurance cover which has been signed so as to recover losses, should it be necessary.  It is estimated that nowadays 25% of Spanish people who let a house, take out insurance in order to protect themselves against this risk. The figures are considerably higher than in previous years. Hence, we can see a growing concern regarding late payment. Let us see what we can do about this.

NON-PAYMENT INSURANCE

As we have already said, if we take out non-payment insurance, we will avoid headaches in case the tenant stops paying the rent. Insurance does not avoid non-payment. However, it helps to protect the owner´s income as well as contributing to having his/her mind at rest. A non-payment insurance allows the owner to have the support of an insurance company not only to collect the rent but also to have insurance coverage in case of damage to the property and even legal aid in case of eviction. Some insurance companies offer a wider cover range. However, the most demanded cover is the one that guarantees that the owner will collect the rent and receive economic aid in case of damage to the property. Normally, insurance companies cover twelve months concerning non-payment of the rent. The owner must contact the insurance company 45 days after non-payment, so that appropriate procedures can be implemented to make the tenant pay the rent.

JUDICIAL MEANS

If the owner does not receive the rent of his/her property, then he/she can sue the tenant for failure to pay. This is the procedure that insurance companies follow. However, if the owner has not signed an insurance, then the situation must be solved by a lawyer. The owner can sue the tenant after one month of non-payment of the rent. Nevertheless, it is advisable to try to reach a negotiated settlement in order to avoid going to the courts. We know only too well that legal proceedings imply expenses, time and they also generally take an unpleasant and tedious path. If you try to solve the problem in a friendly manner, it is important that it all goes on record. It is recommended to send every document to the tenant by registered post or by means of a notary. When you notify the tenant, it is customary to offer a payment deadline. If the payment deadline expires, then you must proceed to a civil lawsuit. If in spite of the lawsuit, the tenant does not pay the rent, then the judge will usually issue eviction. However, each case is different from another. For this reason, in order to avoid an unpleasant situation, some insurance companies analyze the possible tenant´s solvency and reliability before advising the owner to sign a contract.