The guarantee agreement is a document in which a person (the guarantor) commits to paying the tenant's rent and charges in case the tenant defaults on payment. The guarantor plays an important role for the landlord, as it ensures the payment of amounts owed if the tenant is unable to fulfill their obligations.
🔑 Contents of the guarantee agreement
The guarantee agreement must be signed by the person acting as the guarantor and may include the following information:
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Guaranteed amount: The maximum amount the guarantor agrees to pay.
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Duration of the guarantee: The guarantor's commitment may be time-limited or not.
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Conditions of recourse: This document specifies the conditions under which the landlord can request payment from the guarantor (in case of non-payment by the tenant).
💡 Important to know
The guarantee agreement must be signed before the lease is signed.
At Colonies, we use the guarantee agreement in the form of a joint guarantee (where the guarantor is responsible for the full debt without the need to pursue the tenant first).
⚖️ In case of non-payment
If the tenant fails to pay the rent, the landlord can turn to the guarantor to recover the amounts owed. However, the guarantor also has rights and can contest the request if the conditions are not met.
💡 Tip: Before signing a guarantee agreement, make sure you fully understand your commitments. If you have any doubts, our sales team is available to answer your questions during the booking process.