How to Avoid Non-Payment and Protect Your Rental Property

Every owner's biggest fear is not the wear on the flat: it is the tenant who stops paying. The good news is that arrears are prevented far more than they are cured. Here is the practical guide to protecting your property.

1. It all starts with tenant selection

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

• Solvency: payslips or recurring income (the rent should not exceed ~1/3 of their income).
• Job stability: type of contract, seniority.
• History: references from previous rentals if possible.
• Checking debtor registries (with their consent).

A good selection process is not distrust: it is risk management.

2. A well-drafted contract

A clear contract that complies with the Urban Leases Act is your best shield:

• Rent, deposit and term clearly defined.
• The legal deposit lodged with the relevant body.
• The option of additional guarantees (a guarantor, an extra deposit) within legal limits.
• Inventory and the flat's 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 monthly rents for a period.
• Covers the legal defence to claim and, where necessary, evict.
• Sometimes covers vandalism damage.

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

4. Reducing the risk of squatting

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

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

5. Acting early at the first missed payment

If a delay does happen, speed is everything:

• Make contact immediately and in writing.
• Activate the insurance as soon as the policy deadlines are met.
• Do not let the debt grow for months before reacting.

The shortcut: have a professional manage it

Rigorous selection, correct contracts, insurance, fast response... it is a lot. That is why many owners opt for professional management or guaranteed rent: the risk of non-payment is no longer yours. With guaranteed rent, you get paid by a company every month no matter what happens with the tenants.

Conclusion

Protecting your property is not about getting lucky, it is about having a process: a good tenant, a good contract, good insurance and a fast reaction. And if you would rather not worry about any of this, delegating the management turns your biggest fear into someone else's problem.

At AdastraHouse we select every tenant and, with our management model, the risk of non-payment does not fall on you. Tell us about your flat and we will explain how we would protect it.