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Tips for renting your property during Covid-19

1. Ask for references from the previous landlord

It is important to know the payment history, determine if the potential tenant paid his previous landlord up to date or at least check his references in the APC (Panamanian Credit Association).

In times of covid-19 the delinquency rate has increased

2. Ask for work or commercial references

It is ideal to know the income profile of the potential tenant to determine if it is worthwhile from a financial perspective to rent the property.

If you are an employee, the main thing should be a job reference letter indicating your salary and direct discounts on his salary; He is a freelancer. The basic requirements must be commercial references and an extract of your bank movements for the last 3 months to determine an average of income and expenses.

3. Check how many people will live in the property

The departmental units or houses are designed for a certain number of inhabitants, exceeding that number of people can cause greater wear than usual to the property. Extraordinary repairs may result that decrease your potential profit margin on the property.

4. Check the immigration status of your prospective tenant

Panama as a transit country has a real estate market made up mostly of foreigners and it is common for it to receive requests from people from other countries to rent their property and in these cases it is essential to know their migratory stability in our country. It is a priority to verify your residence permit, whether permanent or temporary, and if you are an employee, that your work permit is valid.

A tenant with indefinite status may need to vacate their property early due to employment or immigration issues.

5. Use a correct lease

In practice, many times the owners and even the agents use a model that they obtained on the internet, with legislation that does not apply to Panama or with the correct legislation; but with contractual conditions focused on another real estate business different from yours. This can create loopholes and future complications should you have a legal dispute with your tenant.

Ideally, get the advice of a real estate attorney to save you money and future hassles.

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