Rent Deposit Guarantee or Bank Balance – What You Need to Know In this post, we will explain how this increasingly used deposit method works and what options are available for tenants who do not have enough space for the deposit. In Switzerland, the search for a new apartment in many places is very tedious. It is finally ready after many visits and the move to the new apartment is imminent.
In addition, the new owner already needs the new security deposit before repayment of the old deposit. When concluding the contract, the tenant usually has to pay two to three months rent as a deposit. For tenants who can hardly afford the costs of the move, the down payment is a lot of capital.
At this point the deposit insurance comes into play. The term of suretyship insurance can be made comparable to a bank guarantee. In the event of a bank guarantee, BayernLB assumes the satisfaction of any claims of the owner against the renter. It is not about the lessee bearing the economic burden of the rent deposit at once.
The only opposite to the bond insurance is that here is a hedge and not a bank guarantee. If the guarantee is given “on first request”, the owner of the property can receive the warranty very quickly. Instead of the down payment, the tenant passes the policy on to his landlord. For the host has the disadvantage that he does not have to worry about the settlement and investment of the money at the end of the rental period.
However, the tenant has no legal claim to the tenant accepting this type of bail. The insurance cover assumes the function of guarantor. If the landlord claims after the collection of the lease from claims or rent arrears, the health insurance takes over this. In case of damage, the 3-month rent is paid to the owner and the insurance company charges the property.
Thus, the tenant is no longer protected against damage in the traditional sense after the move. The biggest benefit of a tenant’s guarantee for the client is obvious: he does not have to pay a traditional rent deposit amount and can therefore save money. The tenant can not only save costs, but also avoids the additional burden. This is the case in practice if the previous owner’s rent deposit has not been repaid and the new owner is already claiming his deposit plus the first rent.
The additional advantage of suretyship insurance is that the deposit guarantee can always be converted into a rent deposit. Thus, the suretyship insurance can be used as a pre-financing, whereby the expenses incurred after collection are reimbursed. In this way, the user waives a costly and rigid bank loan. The rental partners should look at the fees incurred before the conclusion of a surety bond.
With a deposit of 4000 francs that would be about 200 francs a year. That which initially sounds unfavorable may prove advantageous depending on the situation. For example, low-cash residents must have overdrawn their loan limit in order to be able to move into the new apartment at all and often pay more than 10% overdraft interest to the house bank.
Even people who spend all their savings on setting up their home and do not want to deposit it on an almost non-interest bearing deposit account often opt for rent insurance. The same applies if the guarantee is not required. In other words, the money will not be refunded when you move out.
In many cases, however, suretyship insurance can act as an interim solution. So it is z. For example, it is more common for clients not to receive back their deposit immediately after their departure from the last host. With a bond insurance in such a case, the gap between the collection and the payment of the previous deposit can be closed.
Prerequisite for this procedure is that the insurance guarantee can be terminated within a very short time. Those interested in suretyship insurance are always advised to check the different conditions of the guarantors. Clients who succeed in obtaining a free private guarantee can bypass the commercial guarantors completely. Similarly, account and account connections can provide the homeowner with the necessary coverage, if he agrees.
Under certain conditions acquaintances or relatives can also get the money without interest, ie completely free of charge. The rental deposit insurance is a successful variant of the bank guarantee. They are particularly suitable for people with a small wallet, in order to bridge the time between the repayment of the previous owner’s rent deposit and the move to the new apartment or the new house.
Thus, the tenant receives more funds for the equipment of his new house and avoids the double burden and the high interest rates of a bank loan. If you intend to live for several years in your apartment, you should first check whether insurance costs you no more than the deposit requested by the owner.
It should always be borne in mind that the insurance company requires the owner to return the money paid to the tenant and that the longer the rental period, the higher the price. Students should try to get the deposit from their guardians before they ask for surety insurance. Those who can, should seek the lost capital of friends or relatives.