New Tenant Schemes: How to Avoid Falling Victim to Rental Scams
In recent years, the Spanish rental housing market has faced a surge in fraud. More and more landlords report that potential tenants are submitting fake income statements and employment contracts. These documents often appear authentic but contain inconsistencies that are hard to spot without experience. Most frequently, payslips are forged — final amounts are inflated, while the other payment details remain unchanged. This creates the illusion of financial stability that isn’t actually there.
Verifying the authenticity of documents has become a crucial step when selecting tenants. Experts recommend not relying on a single document but comparing several papers over different months. It’s also advisable to cross-check information with tax returns, since those are harder to forge. Tax declarations reflect not only income, but also obligations like loans or alimony, allowing landlords to objectively assess an applicant’s solvency.
Risk Prevention: How to Protect Your Property
To minimize the risk of encountering unscrupulous tenants, experts recommend a comprehensive approach. First of all, it’s advisable to request not only proof of income from prospective tenants but also a copy of their employment contract certified by the employer. With the applicant’s consent, you can contact the company to confirm their employment. It’s also important to verify employment history through the official social security service, using a unique code and the document’s issue date.
An additional measure is to check debtor databases, which track overdue payments on loans, utility bills, and other obligations. This helps uncover hidden financial problems. Another option is taking out rent default insurance: insurance companies thoroughly vet each applicant, reducing risks for the landlord. You should avoid accepting large advance payments, as these may be a sign of fraud. The law only allows landlords to collect a certain number of months as a security deposit.
Legal consequences and rental agreement advice
Using fake documents when signing a rental agreement in Spain is considered a criminal offense. Such actions can be punished by up to two years in prison. If it turns out after signing that the documents were forged, the contract can be deemed invalid, and the landlord has the right to go to court.
To prevent such situations, it is recommended to trust professionals with the transaction. Real estate agencies conduct comprehensive background checks on candidates and keep all necessary information for potential legal proceedings. It is also important to document all agreements in writing and keep copies of all paperwork. Following these rules will help you avoid financial losses and issues with evicting unscrupulous tenants.
