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What is a Rental Guarantee?

A Rental Guarantee will pay out the Landlord if the Tenant defaults on his obligations under the Residential Lease Agreement. It is used as an alternative to a cash security deposit. In the event of the Tenant defaulting on his financial obligations under the Lease during the term of the Guarantee (and subject to its terms and conditions), then Eqaro will pay the Landlord an amount equal to:

  • Unpaid rent and/or
  • Unpaid rent for the balance of the minimum Lock-in Period and/or
  • Unpaid obligation to pay for damage to the property at the Expiry or Termination of the Lease
  • Unpaid expenses including utility bills, maintenance charges, water bills, club charges etc as set out in the tenancy agreement.

This is subject to the maximum sum stated in the Surety Guarantee (the "Secured Sum").At the time of applying for the Guarantee, the Tenant must complete the Application and an Indemnity in our favour so that in the event of the Tenant's default, leading to a claim and our paying out under the Rental Guarantee we will then seek recovery against the defaulting Tenant for the amount of our loss. We may also report the default to appropriate credit reporting agencies.

If the Rental Bond is no longer required, and is terminated or returned by the Landlord prior to its expiry, is there any refund?

Yes, if there are no claims under the Rental Guarantee, then on application by the Tenant, we will refund 50% of the remaining unexpired portion of the fee paid for the rental surety. If a Tenant who is an existing customer shifts and takes out a Rental Guarantee for another property, then Eqaro will consider a full refund of the unexpired fee of the Guarantee for the previous property if there are no claims under it.

Is the Rental Guarantee renewable?

Yes, if you are renewing the lease, the Rental Guarantee can be renewed by completing the simple renewal process and paying the prescribed fee. We will be in contact with each tenant at least 30 days prior to the expiry of the guarantee to check if a renewal is required.

If I have had a claim paid out on my behalf to a Landlord under the Rental Guarantee, can I apply for another Rental Guarantee for another property?

No, not whilst the Tenant still owes money to the Guarantor under its Indemnity to repay the amounts defaulted on by the Tenant. If those amounts are promptly repaid to the Guarantor, an application for a new Rental Guarantee can be considered, but the Guarantor will not be under any obligation to issue one.

Can I shift my existing Rental Guarantee to another replacement property?

Yes, the existing Rental Guarantee can be transferred to another property on payment of the transfer fee. The transfer is also subject to the tenant obtaining the release of the Rental Guarantee from the current landlord and provided that there are no pending claims under the bond.

Am I automatically approved for a Rental Guarantee for a new lease on another property that I intend to shift into when my current lease expires?

Yes, provided there are no claims on the existing Rental Guarantee.

What happens if my Landlord does not want to accept the Rental Guarantee and insists on a cash deposit?

While more and more landlords are opting for alternate more efficient forms of security, your Landlord is not obliged by law to accept Rental Guarantees in lieu of the security deposit. It is up to you and the Landlord to agree on what form of security is preferred. Eqaro Rental Guarantee offers advantages to the Landlord as well as to the Tenant. You could ask your Landlord to visit eqaroguarantees.com to understand the benefits of rental bonds. He can also write to us at info@eqaroguarantees.com

I am a landlord. How soon do I get my claim in?

You must submit your claim on the rental guarantees any time before it expires. The period of the Guarantee is for the period of the lease (normally 11 months) plus one month to facilitate a possible claim. A valid claim is paid within 5 working days.

What is the amount value of the Bond?

The amount value of the Rental Bond is the same as the security deposit that the Landlord would have taken from the tenant.

Who pays for the guarantee? The Landlord or the Tenant?

The Tenant pays the fees for the Rental Bond.

Are Eqaro Rental Guarantees available only on Residential properties?

Eqaro Rental Guarantees are available for residential as well as commercial property leases. If you have an interest in commercial property Rental Guarantees, please write to us at info@eqaroguarantees.com to register your interest with us and we will be in touch with you.

What are the fees that I have to pay to get a Rental Guarantee?

Eqaro Rental Guarantee fees are charged as a percentage of the amount of the surety. The fee for a residential rental guarantee is just 6% of the amount of the bond for the first year and 5% for every subsequent renewal. The fee for a two-year residential rental guarantee is 10%.