Renting a property can be a big challenge. Usually, the landlord is in a hurry to be able to move and is not always able to meet all the requirements of the real estate company, including rental guarantees.
The most common guarantee is to present the name of a guarantor. Then, a new impasse arises, as it is increasingly difficult to find someone who accepts this type of invitation.
This is because there is a lot of misinformation on this topic. To help you understand more about rental guarantees, we have prepared this article. Read and understand!
How Rental Guarantees Work
The Tenancy Law guarantees the owner of a property the right to require the tenant some way to ensure that payment will be made. In this way, the impacts of default fall.
This same law establishes the following lease guarantees as valid: surety, surety, and surety bond and investment quotas. This means that the lessee can offer any of these options as a guarantee, but the lessor is not obliged to accept the tenant’s suggestion.
It is up to the property owner (or the administrator) to inform which of the alternatives described in the Law will be required when signing the rental agreement.
Rental guarantees: security deposit
In this type of guarantee, the tenant and the lessor create a joint Savings Account. An amount is deposited in this account, which normally equals three months of rent.
In the event of default, the owner of the property may withdraw the corresponding amount from the account. If the tenant honors his commitments, he will redeem that amount when the contract ends.
In some cases, both parties agree that this amount will be used to pay the last three months of rent. Therefore, the renter does not have to worry about the latest payments.
In the past, this guarantee was made by check, but the use of the Savings Account makes this experience safer for both parties – in addition to protecting the deposited capital from inflation.
It is very important that all information related to this payment, such as the account number and the situations in which the money will be withdrawn, are clearly stated in the rental agreement.
This form of guarantee is one of the most advantageous for the tenant, as he will be able to recover the money in advance.
This is the popular guarantor. In that case, a person undertakes to pay the tenant’s debts if he becomes in default. In some circumstances, the real estate company responsible for the business requires the presence of two guarantors.
To be accepted as a guarantor, it is necessary to have a net monthly income of more than three times the rent. In this account you can also enter the values of fees, such as the condominium, and taxes, such as IPTU.
The guarantor can be either an Individual or a Legal Entity (PJ). As a PJ, the company administrator must sign the rental agreement. In addition, the social contract of the business should allow for this type of situation.
In the case of an Individual, it is important that the guarantor’s spouse agree with this attitude, by signing the rental agreement.
Bail insurance has become one of the most popular rental guarantees on the market. This is because it is easy to be hired, giving agility to the rental process.
This product resembles automotive or home insurance. Therefore, the beneficiary of the insurance is the owner of the property. There are many insurance companies that operate in this market, each offering a different insurance. Therefore, the prospective tenant needs to research the best option for their case.
Some companies cover the amount of the termination fine for the lease, painting the walls, damage to the property, payment of water and electricity, among other expenses.
There is a possibility for residents to take advantage of this service, since some insurers offer the support of professionals, such as locksmiths, electricians and plumbers.
The disadvantage of this type of guarantee is that the contractor will not be able to have his money returned if he honors with his rent – unlike the security deposit, for example.
Investment Fund Shares
Do you know that your emergency reserve at Savings or Treasury Direct? Then, it can be used as a payment guarantee. This is not a very popular way to certify the payment of rent, mainly because not all people are in the habit of saving money.
In this case, the rental agreement will identify the investment fund that will be used as a guarantee. The lessee must prove, by means of statements, that there is capital in that fund.
Therefore, in the event of default, the lessor may redeem the amount corresponding to the debt. This amount must respect a maximum ceiling, identified as the fiduciary assignment that will be offered as a guarantee.
You may have seen that savings bonds can also be offered as a form of collateral. Many people believe that this is another way of guaranteeing payment, but this is not true.
The capitalization bond falls into the “collateral” category. Although it is more common for people to create a joint account for this modality, the security deposit does not necessarily have to be that way.
The deposit can be made even by offering movable assets, such as cars or motorbikes, for example.
However, capitalization bonds have become popular because they are easy to contract. The lessor will buy this security and will only be able to redeem part of the amount invested at the end of the contract.
During this period, he will participate in prize draws. Some companies offer the corresponding 10- month rent to the winners. However, these conditions change according to the contracted product, so do a good research before hiring.
As we have seen, there are many rental guarantees that you can offer when renting. This is interesting information to help people who are struggling to get a guarantor. So, talk to the owner of the property you want to rent to offer the ideal guarantee for both parties.
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