The interest payout is directly tied to the actual performance of the property, this means that if a tenant doesn’t pay, you will receive less interest payout. This is why projects listed on Piece platform minimize rent payment risks with these steps:
Tenant Screening: The potential tenants are carefully assessed through background checks, credit evaluations, and employment verification to ensure their financial stability.
Security Deposit: Upfront security deposit is required, often 2 month's rent or more, to cover unpaid rent and property damage.
Strong Lease Agreement: A clear and comprehensive lease agreement is used outlining rent due dates, late fees, and consequences for non-payment. We make sure tenants understand these terms before signing.
In the unlucky event that there is a late payment our process is simple and effective made of 2 steps:Communication: Tenants are first contacted through notices, emails, or direct conversations. It might be a simple oversight or temporary financial difficulty, easily resolved with a reminder. If needed, late fees are applied as per the lease terms.
Eviction Process: If communication and late fees don't work, a legal procedure for eviction is activated, which may involve serving eviction notices and, if necessary, filing eviction lawsuits.
Vice versa, if the rent increases you will receive more interest payouts. German Estate Group GmbH, a sister company to Piece Germany who holds and manages the assets, will always try hard to keep the rent matched to the market standard.