For a safe rental, it is necessary to understand the guarantees that exist in the market. The “rent security” or “security deposit” is one of the options to have a good rental guarantee. But there are others that make it possible to carry out the lease without the figure of the guarantor. Like surety bonds, the CredPago guarantee or a capitalization bond. Find out here the 6 main types of rental insurance, after all it is essential to have more security when renting your property.
When renting a property, it is important that the landlord obtain a tenant’s rental guarantee to acquire more security in the lease. Although the best known and most used is the guarantor, the guarantee is already the second most used type of guarantee in the city of São Paulo, according to Secovi .
It is important that you require one of them, as this avoids possible problems, such as cases of fraud, defaults or damage to the property.
In addition, it is important to offer several options for the tenant. Often, traditional guarantor insurance makes it impossible to lease because the lessee does not get one. This ends up generating dissatisfaction for both parties, since the customer can be prevented from renting and the owner can keep the property empty.
Understand the importance of having a rental guarantee and know the 6 main types of rental insurance for you to choose the most suitable!
Tenancy guarantees in the Tenancy Law
The rental of real estate requires some care to provide greater security to the landlord, since this is an activity susceptible to risks – such as default. For this, Law No. 8,245 / 1991, known as the Tenancy Law, presents types of rental insurance.
According to article 37, the lessor may require from the lessee some types of lease guarantee, such as: surety bond, surety bond, surety bond insurance and fiduciary assignment of investment fund shares.
It is worth remembering that this requirement must be specified in the rental agreement. In addition, more than one type of insurance is not allowed in the same contract.
The 6 main types of rental insurance
The main types of rental insurance are:
- Bail insurance
- Capitalization title
- Mortgage bond
- Land session
- Security deposit
1. Bail insurance
Bail insurance is a very reliable option for landlords, although it is costly for tenants. In this type of guarantee, the tenant needs to hire an insurance company and pay the insurance, whose coverage can vary from 2 to 30 months of rent.
The payment of the amount can be paid in installments and other values, in addition to the rent, can also be covered by surety bonds – such as condominium and property tax. If the lessee defaults, the owner has the guarantee that the insurer will be responsible for the payment.
The advantage of this type of rental insurance is that it does not require a lot of bureaucracy. However, it is not always favorable for the tenant, as it can weigh on your budget.
2. Capitalization bond
In this type of rental insurance, the lessee must acquire a capitalization bond that is linked to the lease. The value of the title varies depending on the rental, being generally 8 to 12 times the rental price, in addition to the fees.
The amount of the capitalization bond cannot be moved during the term of the contract. Only at the end can the tenant recover the title, with monetary corrections.
If the lessee has debts or the property has suffered undue losses during the lease, the owner can redeem the capitalization bond. If the lessee is up to date with his obligations, it is his right to withdraw the amount back.
3. Mortgage bond
In the mortgage bond, the rental guarantee consists of the mortgage of a property. This property is linked to the lease and, in cases of default, attachment may occur.
In this case, the tenant must offer as a guarantee a paid property and with public deed. The mortgage is then registered with a notary. At the end of the rental agreement, if the tenant is in good standing with his obligations, a letter must be issued requesting the write-off.
The CredPago Rental Guarantee replaces the guarantor. When renting a property, whether residential or commercial, the tenant contracts CredPago’s professional guarantee during their lease.
This insurance provides the following benefits for the property owner:
• Fast and easy receipt
Owner receives in a few days after notice of default.
• Agility to rent
Process made with less bureaucracy.
• Non-segmented guarantee
Owner uses up to the contracted limit as needed. * Except for exit costs.
The CredPago guarantee is in accordance with Law 8245. The Tenancy Law.
The guarantor is a person who has his own good and accepts to place it as a rental guarantee for the tenant. He must also prove a monthly income, at least, three times higher than the rent. Usually this property is the property, but real estate rental contracts can be made by placing another type of property, such as cars, boats or another item of value.
If the lessee defaults, the responsibility for payment lies with the guarantor. If he also does not honor the commitment, he can have his property pledged.
Since this type of rental insurance poses a considerable risk, finding a guarantor is not always easy. In addition, it is common for homeowners to require the guarantor’s property to be in the same city as the property to be rented, which creates even more obstacles.
5. Fiduciary assignment
In this type of rental insurance, the guarantee consists of an investment fund, with a value almost always corresponding to 12 rentals and rental charges. The tenant must register the rental agreement with the administrator of the fund offered as guarantee.
With this, a fiduciary assignment term is generated that determines that, in cases of default, the lessor may request the number of quotas equivalent to the amount of the debt. At the end of the contract, if there is no debt, the tenant simply needs to recover the investment amount with the necessary updates.
6. Security deposit
The security deposit is one of the simplest and most practical types of rental insurance. However, the tenant needs to have some savings to shoulder this responsibility.
The tenant only needs to make a cash deposit or a bank transfer with the deposit amount in a savings account. This amount is generally equivalent to three months of the rental amount.
The security deposit is kept until the lessee decides to leave the property, when the contract ends. In this case, he receives the amount back, together with the interest on the investment and the monetary correction.
How to choose the most suitable rental insurance?
As you have seen, there are several types of rental insurance. It is important that you choose the most suitable for your case. For this, consider credit analysis and other tenant data. They will guide you on which is the best insurance, considering the customer’s profile.
Also, be sure to take into account your renter’s preferences and conditions. It is essential to offer different options in order to facilitate the lease.
Thinking both of the facilities for your client and of your security as a landlord, soon you will enter into an agreement on which is the best type of rental insurance for both parties.
Do you want even more security when renting your property? Then, learn about other rental insurance and guarantee options!