2023-12-23 11:04:03
Non-payment of rent has grown considerably in recent years since many tenants cannot afford to pay their monthly payments. This situation is mainly due to a general increase in prices and an increasingly higher price of rental housing. It is not surprising that this is one of the most frequent problems that homeowners face, which is why one in five prefers to sell their house rather than rent it to avoid having problems with paying the rent, such as and as shown in a report prepared by the real estate portal Fotocasa.
Those who risk and rent their home decide to protect themselves from this situation, taking out non-payment insurance or requesting a guarantee to sign the rental contract.
“The guarantee is a contract by which a natural or legal person guarantees or ensures the fulfillment of obligations, assuming the payment of a debt of another person if the latter does not do so,” explains the Bank of Spain (BdE). This guarantee is an additional guarantee that the owner can request from the tenant to avoid non-payment of rent.
The guarantee can be personal or bank, depending on whether the person responsible for the tenant is a natural person or a bank. “The rental guarantee is issued by a company specialized in securing the lease contract,” explains the multinational guarantee company, Finaer.
The bank will charge a commission for the service and may require additional collateral from the main debtor. Furthermore, to request a bank guarantee, the tenant must go to their financial institution and present documentation that proves their solvency and ability to pay.
The personal guarantor is a person – usually a family member or friend – who guarantees another person with his or her present and future assets. This can be simple or joint depending on the form of the beneficiary’s claim. The simple guarantee consists of the beneficiary must first claim from the main debtor and then go to the guarantor, and the guarantor may demand that the main debtor return what was paid. On the other hand, in the joint guarantee, the beneficiary will be able to claim against both people and the guarantor will not be able to demand that the main debtor return what he has paid for him until the debt is extinguished.
Is the endorsement mandatory?
In Spain, the guarantee for the rental is not mandatory by law, since it can be established in the event that there is an agreement between both parties and it is included in the rental contract. The owner may request it as a requirement to rent his home, however, the tenant may refuse to accept it or even negotiate other conditions.
Likewise, you can also have a guarantee to rent a room, since this way the owner will be protected in case of non-payment or damage to the property.
Although the guarantee can cover the amount owed, “it does not exempt the tenant from his responsibility to pay and the owner can demand payment of the debt from both the tenant and the guarantor or surety,” says Finaer.
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