The surety bond has come to be an alternative to ordinary rent guarantees. Ideal for tenants who have difficulties to obtain guarantees in a process of renting a residential or commercial property, whether in Curitiba, São Paulo or any other Brazilian city. But do you know what is safe-bail ?
Due to the lack of a guarantor or guarantor, many people use the surety bond, since this practice facilitates the search for a property and works as a guarantee to the owner. Do you want to rent a house or apartment and do not have a guarantor? Understanding what the surety bond is will allow you to reach your goal.
Basically, insurance is the hiring of a policy in which the owner of the property will be the sole beneficiary. It is worth for almost all type of property and caters for people looking for commercial spaces, apartments or even kitchenettes for rent. It costs, on average, an annual rent, usually divided by 12x over the months, and allows the tenant to be the insured.
In the event of default, the use of surety-bond makes it possible for the lessor to receive late rentals even before there is an agreement between the parties.
As soon as the delay is identified, the insurer is immediately notified and within 30 days the landlord already receives the arrears and remains receiving the rent value from month to month until there is an agreement.
Insurance-guarantee does not guarantee the registration approval
It is important to understand what is the surety bond and also its main details, since it waives the use of guarantor or the voucher, but does not guarantee that the tenant will have the registration approved. Insurers require a number of requirements to ensure that they will not be harmed and that the insured has a clean name on the square.
In addition to proof of rent, which generally must be three times the rent, it is necessary that the tenant submit documents proving that there is no restriction in their name. Some debits may pass, but bank or state debts, for example, hardly allow the registration to be approved.
In the case of proof of income, insurers usually allow rents to complement each other. That is, the sum of the billing of all the residents can count at this time, which is a great advantage for those who still do not receive enough.
Although this stage of validation of the surety bond can be a little nebulous, since it is not always possible to understand the reason for the disapproval of the cadastre, there are some quite clear requirements. You will not have your approved registration if you have debts with another insurer (even if already prescribed) and you have sued in court against banks, financiers or other lessors.
What are the advantages for the owner?
The surety bond provides many advantages to the tenant. When the lease is made directly with the owner, it is possible to make a simple contract with clear clauses and still be assured that the rents will be received.
In addition to the certainty of payments, the landlord can still have repair insurance 24 hours a day. That is, breakdowns in the property can be repaired and this avoids the devaluation of your property. Some insurers do not charge a fee for this additional clause, ie if the tenant fires the insurance, there will be no need for extra payments.
Another advantage is that this helps you find a renter for your property, since the value of the insurance can be parceled out and people do not always have the full amount for payment in the act.
If the rent is signed through real estate, even if the company files suit against the renter, the landlord will still receive the amount due to him. When the guarantee is made by a guarantor, he may also be absent from the payment or file a lawsuit preventing the attachment of the property or requesting exemption from payment. Although justice, in general, is favorable to the owner, this is a headache that nobody wants, does not it?
Among all the guarantees, the surety bond is presented as one of the most advantageous modalities, facilitating the rent of the property and avoiding that the owner is injured.
What are the advantages for the tenant?
Not every tenant has a large sum of money to make a security deposit, which is a three times the rent and is passed on to the owner in case of default. Therefore, with the ease of payment through the surety bond, it is easier to find a property that meets your goals.
The surety bond also avoids embarrassment in the search for a guarantor. This is because the guarantor must have a property removed and this is given as a guarantee, that is, people fear to compromise and be brought to court. Although the laws do not allow the sole property of the family to be seized, it is certain that a lawsuit will erode the relationship between the tenant and the guarantor and that the latter will have to bear the time and expense until his name is excluded from a possible debt.
In the event of late payment of the rent, the surety bond also allows you to gain time in the negotiation with the lessor and is able to pay the due amounts more calmly and safely.
It is worth remembering that the surety bond does not exempt the lessee from paying the debts. He will then have to pay the payments directly with the insurer.
Insurers may also cover property damage and paint the property, ensuring that the tenant does not have to worry about these details at the end of the contract.
What are the advantages for real estate?
For real estate, the surety bond is a very advantageous modality. In addition to guaranteeing the receipt of the amounts that may be due, it makes the leasing process less complicated and bureaucratic.
As the credit analysis is done directly with the insurer, there is a time savings of real estate employees who can devote themselves to raising real estate and owners for their catalog.
Another facility is that all legal advice is provided by the insurer, that is, the charges of the real estate are reduced.
The surety bond is one of the quickest and easiest guarantees when renting a property, whether for lessor, renter or real estate. Now that you've understood what surety bond is, take a quiet look at whether it will meet your goals for renting a property.