Are my real estate and money safe on Flatio?
Flatio has precautions in place to protect your property and your payments.
Can I receive the first rent even if the tenant doesn’t move in? Yes, it is possible! At Flatio you can choose from several types of cancellation policies, in combination with a contractual process, which includes the payment of the first lease in advance to our collection account. This is an effective tool that protects landlords from reckless people who only say they are interested in renting. Therefore, if a tenant with a valid contract cancels a reservation 13 days or less before the lease begins, you are entitled to the entire first rent.
If the tenant decides to cancel the entire stay within 14–29 days before the contract begins, the landlord is entitled to half of the first rent. However, if the tenant's cancellation occurred 30 days or more before the contract begins, we return the first rent to the tenant because we consider this to be sufficient time to find an alternative tenant for your home. This information is valid again for basic alias strict cancellation policy. Read more about the different cancellation policies and early termination issues in the article here.
Assuming that the handover of the flat on the move-in date is problem-free (by confirmation from tenants by phone or email), Flatio sends the landlord the first rental payment on the next business day. However, if we do not have confirmation of a problem-free flat handover, and, at the same time, neither party wishes to withdraw from the lease agreement, we forward the money automatically on the 8th day after moving in (i.e., +7 days from the move-in date). This rental provides the tenant with accommodation for 30 days from the start of the lease.
Each additional rent is paid by the tenant to the Flatio collection account where, in the case of a transfer payment, the money is held for a maximum of 24 hours (in practice, we send it to the landlord on the next business day). If the payment is paid by a payment card through the payment gateway, the money is sent after 5 business days.
You can read more about calculating rentals and sending them in a separate article here.
Flatio Damage Coverage Guarantee deposit
Although we hope to match tenants and landlords who will have a harmonious relationship, it is always possible that property damage can occur. For this reason, Flatio has a Damage Coverage Guarantee deposit that covers all of these regrettable situations and is available to all Flatio landlords who do not have set the classic deposit (for rentals from 180 days) at offer settings in My rentals application. It is a fund from which we are able to pay you damages up to EUR 10,000.