Rental nomads are one of the most unpleasant challenges in everyday life as a landlord. They conclude rental agreements with unfair intentions and leave apartments in a dilapidated condition. This often results in lengthy court hearings and expensive renovation work. The landlord is usually left with the costs. It is therefore important to recognize rental nomads at an early stage and to protect yourself from them as best as possible.
What are rental nomads?
Rental nomads conclude tenancy agreements fraudulently, do not pay rent, are difficult to force to evict through court and leave behind neglected apartments. Landlords suffer significant financial losses, which can amount to several thousand euros, due to the associated loss of rent and property damage. Although there are now efficient options for eviction, the most effective prevention against rental nomads is not to let them into the apartment in the first place.
The law is basically on the landlord's side, but it is often a big challenge to bring rent nomads to court. In many cases they have already disappeared before legal action takes effect. The risk of being stuck with the costs of renovating a damaged property or due to loss of rent is correspondingly high.
How do the rental nomads go about this? Usually they use various fraudulent actions in connection with the conclusion of the rental agreement. For example, they provide false information when concluding a contract in order to obtain unlawful financial advantages. This is also referred to as rental fraud. Typical procedures include assuming false identities, submitting false proof of income and stating non-existent employment relationships. False information about the financial situation is also often provided. Once the rental agreement has been concluded, the rental nomad no longer pays rent, causes damage to the apartment or does not use it for its intended purpose.
That's why rental nomads are so problematic for landlords
There are many reasons why rental fraudsters are so feared by landlords. The following are particularly noteworthy.
Rental nomads cause rent losses
Rental nomads often pay rent irregularly or not at all. This leads to financial losses for the landlord, who is left with the arrears and may have problems covering ongoing costs.
Damage to housing caused by rental nomads
Rental nomads tend to neglect or even vandalize the rented apartment. This can lead to significant repair and renovation costs if the property is to be restored to rentable condition. Rental nomads therefore contribute to one Loss of property value at.
Rental nomads incur legal costs
Evicting rental nomads can be a time-consuming and expensive process. It is often not that easy to prove rental fraud. Landlords may have to bear significant legal costs to regain possession of the apartment.
Huge loss of time
The process of evicting rental nomads and returning the apartment to rentable condition takes time. During this time, the landlord cannot generate rental income, which leads to further financial losses.
Rental nomads are at risk of recurrence
Rental nomads are often mobile and could repeat the scam in other rental properties. This poses an ongoing threat to landlords, particularly if adequate checks and precautions are not taken to prevent such situations.
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How do you recognize rental nomads?
Since rental nomads can have such serious consequences for landlords, it is important to identify them before signing a contract. You shouldn't rely on external appearance, but rather concentrate on reliable facts. The following tips have proven themselves in practice:
- Request a credit report from potential tenants, for example from Schufa or Creditreform.
- Ask for current proof of income, usually the last three, or, if self-employed, relevant income tax assessments.
- Use the employment contract to ensure that the employer details are correct. If you have any doubts, you can contact them directly.
- Verify the prospective tenant's identity using an official ID and compare it with other evidence provided.
- Check your ID for a permanent place of residence, as rental nomads often don't have one.
- Contact the last landlord. If the tenant does not want to name this, you should be careful. Request a certificate certifying that you are free from rent debts.
- Ask for the rental deposit in cash instead of security deposit insurance. Tenant liquidity problems should be viewed with caution.
A thorough check can help identify and deter fraudulent tenants early on. If tenant fraudsters have already moved in, landlords can force them to vacate the property before an eviction process is completed.
What can you do against rental nomads?
It is not always possible to identify rental nomads before signing the contract. But even then, landlords have various options open to them. The first choice is always a warning. It should be issued by the landlord if the rent is not paid on time for the first time. It serves to communicate clear expectations, highlight possible consequences and give the tenant the opportunity to meet payment obligations. Furthermore, the warning serves as written proof that the tenant was informed about the late rent payment and what consequences this may entail. In the event of further legal steps such as an eviction action, the warning represents a documented advance warning.
If a rental nomad does not pay the rent twice in a row, an extraordinary termination should be given immediately. At the same time, the ordinary termination should be declared in order to prevent the tenant from later invalidating the extraordinary reason for termination by making subsequent payments. The termination should be well justified and access should be verifiable.
After receiving the extraordinary notice of termination, the tenant has two weeks to vacate the apartment. If this does not happen, an eviction lawsuit should be filed with the local court to obtain an eviction order. Paying the court costs advance is important in order to serve the lawsuit.
After receiving the eviction notice, it must be delivered to the tenant. If it cannot be found, public service can be requested. A bailiff is then commissioned eviction to carry out. If you have legal protection insurance, you can choose the “classic eviction” option, in which confiscated items are confiscated in order to pay off rent arrears. In principle, the defaulting tenant must be responsible for monetary claims Collateral provide.
If there is no promise of coverage from legal protection insurance, the Berlin model can be chosen. The bailiff simply replaces the lock cylinder on the apartment door and the inventory remains in the apartment. However, items that cannot be seized must be stored by the landlord.
In commercial tenancy law, the Federal Court of Justice also recognizes that the discontinuation of electricity and/or water can be compatible with the legal regulations, provided that the tenancy has been terminated and the landlord has paid for the electricity and/or water supply. However, this is only possible one month after delivery of the effective termination. A supply cutoff can serve as a “motivational support” so that the rental nomad leaves the apartment.
Insurance against rental nomads
What else can you do against rental nomads? Another effective measure is to take out “rental nomad insurance”. This allows landlords to protect themselves from financial losses caused by rental nomads. Depending on the provider, it includes different services. Important aspects include the following:
Loss of rent insurance
This insurance covers the financial loss that occurs if the tenant fails to pay the rent. It can cover a certain amount or a certain percentage of the rent for a set period of time.
Legal protection insurance
Legal protection can protect landlords from the costs of litigation related to evictions or other legal issues.
Damage insurance
This coverage can cover damage to the property caused by rental nomads. This includes, for example, vandalism or intentional destruction.
Clearance costs
The insurance can cover the costs of evicting the tenant if this is necessary due to rental nomadism.
It is important to note that not all insurance policies automatically include rental nomad coverage. Landlords should carefully review the terms and exclusions and ensure the insurance policy meets their specific needs.
Show rental nomads
If a landlord in Germany is confronted with a rental nomad who does not pay the rent or otherwise violates the rental agreement, the usual legal route is to initiate an eviction action. This process is usually carried out through civil law and it is not absolutely necessary to report the rental nomad to the authorities. However, some local laws and ordinances may require this. Here it is important to check local regulations to ensure whether there is a reporting requirement.
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What is the situation for rental nomads with children?
If a rental nomad has children, this can limit the scope and procedures of landlords and responsible authorities. In many countries, including Germany, children are under special legal protection and their concerns must be taken into account in legal procedures and decisions. In this country, for example, there are special regulations that regulate protection against dismissal for families with children. It should be highlighted, for example § 574 BGB. Other bodies such as social services and youth welfare offices are often also involved.
Conclusion – You can do something against rental nomads
Rental nomads represent a major problem for landlords. They result in lost rent, legal proceedings and evictions and cause significant financial risks. It is therefore important to keep your eyes open for them early on. Legal protection insurance, which covers the costs of legal proceedings, also offers a certain level of protection in the event of an emergency. In order to protect other landlords, it may also be a good idea to report rental nomads. Important contact points here are the police, landlord associations, tenancy law advice centers, city administrations and lawyers. However, there is no 100% protection against rental nomads.
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