Often, when you look at renting bureaus, you’ll be offered a bail for a bank guarantee.
The bank guarantee is the bank’s declared willingness to pay on the first request and without protesting the amount claimed by the beneficiary.
The beneficiary is in this case the landlord (you are a tenant)
The amount of the bank guarantee has its limit. The bank will fulfill the beneficiary’s request for a specific contractual limit of the guarantee.
The landlords most often expect to establish a bank guarantee equivalent to 3 monthly rent payments including a VAT tax plus an additional 3 months administrative fees and expected service charges in the gross amount. Of course, the parties can agree otherwise.
The scope of the warranty covers violation of your contractual provisions (delay in payment of rent, necessity to cover losses resulting from improper use of the premises and other serious violations described in the contract.
The scope of the warranty may also include tort liability for damage caused by the tenant’s staff, his guests. In the guarantee covering the tort and contractual obligations we find the entry “The guarantee covers all claims of the Beneficiary (the Lessor) towards the bank’s client (tenant)”.
By granting a guarantee the customer agrees to maintain a monetary reserve for this purpose for the duration of the guarantee for which he receives remuneration.
The remuneration for the granted guarantee should be lower than the credit margin and interest rate, because after all the bank will perform guarantees only for a part of its clients, and will have the remaining resources at its disposal.
The bank expects the client to meet the conditions and determines his remuneration for establishing the guarantee
The bank declares that it will pay the renter the requested amount, e.g. within 5 working days from the date of submission without considering any protests and resolving disputes between the parties.
Banks often restrict the possibility of further assignment of claims obtained by the Lessor / Beneficiary from the guarantee without the bank’s consent. The guarantee expires on the date specified in the guarantee agreement or when the benefits paid under the guarantee amounted to the amount of the guarantee. Our grandparents used bills of exchange, we use the guarantee;)).
It is up to you to choose a deposit or a guarantee.