Lack of payment and false identity, the main problems when renting a property

Live from the rents It is the dream of many owners of real estatebut it is not an easy task, so certain precautions must be taken to avoid conflicts and put heritage at risk.

According to Diego Llano, CFO of Morada Uno, a Mexican startup of lease real estate, the three main problems in the renta of housing are:

• Paid arrears.
• Tenant identity fraud.
• Damage to the property due to misuse or negligence.

In the financial field, the National Commission for the Protection and Defense of Users of Financial Services (Condusef) registered nearly 50,000 claims for identity theft in 2021, a figure that represented a growth of 54% compared to 2020.

Within the topic of lease of a property, Llano explained that the affectation directly impacts the planning of an owner, due to the legal process that must be carried out.

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“What happens is that, when proceeding with a lawsuit and recovering the property, it is very complicated because the person who signed the contract is not a real person, the lawsuit process is much more complex and the time lengthens accordingly, as well as the cost of this, ”said the manager.

That is why it is recommended to prevent with in-depth investigations that use technology to detect altered documents and falsification of identity through biometric data.

“Proptechs like us use technology based on identity verification and document alteration detection software. With a selfie that recognizes thousands of points on the face to compare with the identification photo. This way you can be sure that the person is who they say they are before signing a contract,” Llano said.

Payment slip

Late payment of rent creates stress for the landlord. In this context, Llano explained that in Mexico there is a law that protects the tenant, with which certain rights abuses have been generated.

“As the owner, you cannot initiate a lawsuit for the termination of the contract and recovery of the property until the tenant fails to comply with his second rent payment. The tenant who knows it pays partially so that this term never expires and cannot be sued.

If this scenario occurs, what remains for the owner is to seek advice to start a legal process, which can last up to a year, to try to recover their rents and your property.

In the case of Morada Uno, the costs of legal fees, payment of rights and any other to recover the property are covered. In addition, its business model guarantees the owner the payment of his rents.

property damage

Although it is common in lease If there is damage to the property beyond the normal use and deterioration of things, the contract must clearly state who the maintenance expenses and major grievances correspond to.

However, damage caused by making unauthorized modifications or even leaving a window open in the rainy season and damaging a wooden floor can cause substantial damage that is not covered by the rent deposit.

“In these cases it becomes very difficult to receive compensation through civil proceedings; You would have to go to court and win it, that assets be seized from the tenant (a bank account, a car or a property belonging to their guarantor) and they are auctioned to be able to cover the damage to your house”, explained the spokesperson for Morada Uno .

Once again, to avoid these conflicts, the expert recommended prevention, that is, having insurance that must cover all damage caused by misuse of a property or negligence by the tenant.