How to avoid rent arrears and protect your rental property

Every owner's biggest fear isn't wear and tear: it's the tenant who stops paying. The good news is that arrears are far easier to prevent than to cure. Here's the practical guide to protecting your property.

1. It all starts with tenant screening

90% of the risk is decided before you sign. Before handing over the keys, it's worth verifying:

• Solvency: payslips or recurring income (rent shouldn't exceed ~1/3 of income).
• Job stability: type of contract, length of service.
• History: references from previous lets if possible.
• Checking debtor registries (with their consent).

A good screening process isn't distrust: it's risk management.

2. A properly drafted contract

A clear contract compliant with Spain's tenancy law (LAU) is your best shield:

• Rent, deposit and term clearly defined.
• Legal deposit lodged with the relevant authority.
• The option of additional guarantees (guarantor, extra deposit) within legal limits.
• Inventory and flat condition documented with photos.

3. Rent-default insurance

This is the star tool. For an annual premium (usually a small percentage of the rent), the insurer:

• Pays you the unpaid months for a set period.
• Covers legal defence to claim and, if needed, evict.
• Sometimes covers vandalism damage.

To take it out, the insurer assesses the tenant — which also reinforces your screening.

4. Reducing squatting risk

Squatting is scary, but the real risk drops a lot with common sense:

• Don't leave the flat empty and neglected for months (overflowing mailbox, blinds always down).
• A secure door and lock; an alarm if the area calls for it.
• Act fast at any occupation: the first 48 hours are crucial.
• A flat always occupied by legitimate tenants (as in managed room renting) is, by definition, far harder to squat.

5. Act early on the first missed payment

If a delay does happen, speed is everything:

• Make contact immediately and in writing.
• Trigger the insurance as soon as the policy's timeframes are met.
• Don't let the debt grow for months before reacting.

The shortcut: let a professional manage it

Rigorous screening, correct contracts, insurance, fast response... it's a lot. That's why many owners choose professional management or guaranteed rent: default risk stops being yours. With guaranteed rent, you get paid by a company every month no matter what happens with tenants.

Bottom line

Protecting your property isn't about luck, it's about having a process: good tenant, good contract, good insurance and a fast reaction. And if you'd rather not worry about any of it, delegating management turns your biggest fear into someone else's problem.

At AdastraHouse we screen every tenant and, with our management model, default risk doesn't fall on you. Tell us about your flat and we'll explain how we'd protect it.