Rent guarantee

Rent guarantee

When entering into a tenancy, the tenant must usually provide a security for potential damage, wear and tear or inability to pay. This is usually done with a deposit equivalent to three or six months’ rent. Deposit or other collateral in fixed assets or real estate, locks equity that should be used for the development of the business. Rent guarantee in the form of an insurance will then be a good alternative for freeing up equity. The guarantee is purchased when entering into a lease, and is a lump sum that you do not get back.