Rental Deposit Guarantee
Our Rental Deposit Guarantee product is designed specifically for the commercial property market such as large property developers, malls, retail shopping centres, property managing agents and operating franchises.
Typically, the landlord of a commercial property would require a minimum rental deposit equal to three months’ rental. The result of this is that prospective tenants have to pay a large amount of their capital upfront just to secure their operating premises. This often results in a cash flow shortage and forces smaller enterprises to initially utilise overdraft facilities.
As a result of the high demand for this type of guarantee, we developed the rental deposit guarantee which operates on a no collateral basis using the rental agreement as the basis for the period that the guarantee will be in operation.
The Guarantee is issued in lieu of the initial deposit required upon rental of a property and should the tenant be unable to pay the monthly rental required, the Guarantee will be called on and funds used towards payment of any outstanding rent or the cost of repairs to the premises where necessary.
This is only a guide. The full terms and conditions are contained in the policy wording.