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The surety bond is all you need to make renting your dream home easier!
According to some experts, living with your parents after the age of 30 hinders your growth.
Furthermore, there comes a stage in our lives, usually very close to this age, when we want to have our own space, our own rules, more privacy and freedom.
Imagine having your own little corner, your way, and being able to build your own safe haven.
If you can't afford to buy your own home yet, but can afford rent and other expenses, renting a house is a great alternative.
However, some real estate agencies request a guarantor as a type of rental guarantee.
If you don't have a guarantor, don't worry! There is another alternative: surety bond. In fact, that's exactly what we'll be talking about today.
Keep reading and find out what it is, how it works, advantages, disadvantages and much more!
In this text we will cover the following topics:
What is surety bond?
By deciding to live alone, you will open the doors to a new world, full of surprises and challenges, but with events essential for your growth and development.
One of the challenges you face when renting a house is that it's something new, something you've never done before, and you may find some rules strange.
When renting a property, there are some necessary steps to follow, one of the main ones being the need to present a rental guarantee.
There are a few different guarantee options, for example, upfront deposit, guarantor or surety bond.
With this insurance, the landlord receives the rental amounts, so the tenant has the freedom to choose to rent the house of their dreams, wherever they want, without needing anyone to be their guarantor.
This guarantee provides more security for the property owner, thus making the process easier for those who wish to rent the house to live in.
The main coverage of this insurance is rent default, but it is still possible to find options with broader coverage, in this case, they can cover additional expenses such as condominium fees, damage to the property and IPTU, for example.
How does rental surety insurance work?
Surety bond insurance, also known as rental insurance and rental guarantee insurance, makes life much easier for those who want to find a good property to live in.
This is because, when you hire it, you can present it to the landlord, so he can be sure that if by chance the rent is not paid, he can just contact the insurance company and it will pay off the debt related to the delay, including fines or interest.
It will certainly bring more security to both parties.
What are the advantages and disadvantages of a rental guarantee?
THE rental surety insurance It offers advantages for both landlords and tenants. Tenants have more freedom to choose their dream property.
Furthermore, the process becomes even less bureaucratic, in fact, the analysis is very quick, the insurer can resolve the issue within a maximum of 24 hours.
Great for those who urgently need to live alone and have more freedom!
This product greatly speeds up the negotiation process, as if you were to search for a guarantor it would take a long time, even if you found one, there would be many steps to follow, for example, separating documents and filling out forms.
Furthermore, it is worth noting that it can even be more economical, because you would not need the services of a real estate agent.
The entire negotiation process will be carried out directly with the property owner, thus saving on extra fees for real estate services.
Even the rent can be more affordable.
Another important advantage is that you can pay for your insurance in up to 60 interest-free installments. Besides giving you plenty of time to pay off your installments, you won't even be charged interest, as some companies do.
Well, in the case of disadvantages, they tend to be more common for those who rent their house to live in.
The main one is that you're taking on debt anyway. Besides that, this product is considered expensive.
In many cases, the annual value of the surety bond it can be up to twice as much as rental expenses.
Therefore, it is very important to evaluate which is the best option and whether this extra expense will fit into your budget without reducing your quality of life.
Despite having some disadvantages, it may be the best solution for those who want to rent a house but don't have a guarantor.
What is a guarantor?
The guarantor is responsible for guaranteeing payment of the debt. Therefore, they assume certain responsibilities towards the real estate agency.
Because of this, it's more difficult to find a guarantor. It's crucial that there's a bond of complete trust between the guarantor and the tenant.
This is because the guarantor is responsible for paying the rent if the tenant defaults, thus becoming a debtor as well. They can even be sued if the debt is not paid.
This makes the process of finding a guarantor even more delicate and difficult.
One of the requirements for a guarantor to be accepted is that he or she must have a property in his or her name.
Why does the rental guarantor need to have a property in his/her name?
It is essential that the rental guarantor have a property in your name to guarantee compliance with the contract.
Other than that, he must not have any restrictions on credit protection services, that is, a bad name on the SPC and Serasa.
As previously mentioned, the guarantor can be charged in court, however, the first charge is against the principal debtor.
However, depending on certain clauses in the contract, the guarantor and the principal debtor may be charged simultaneously.
Depending on the situation, the guarantor may have his property used as collateral, which can be sold to pay off the debt.
Because of this risk, it's very difficult to find someone willing to act as guarantor for another person. Having the courage to put up your assets as collateral for payment of a debt that isn't yours is complicated; it requires a relationship of extreme trust.
In this case, it's important to find alternatives to renting a property without a guarantor. Read on to find out how.
How to rent a property without a guarantor?
Dispensing with the possibility of having a guarantor, there are still other ways to rent a property without this guarantee.
The main alternative after a guarantor is a surety bond (we'll discuss this in more detail in the next section). Additionally, some companies accept credit cards, capitalization bonds, and investment funds.
Capitalization bonds and investment funds are more complicated and less common options in the field. Furthermore, it's important to understand the subject before using them as collateral.
Taking these two alternatives away, we are left with deposit and the surety bond. In the next topic we will talk more about the deposit.
What is a deposit?
A security deposit is a cash deposit, a kind of advance payment. This is one of the most common alternatives when providing security for a rental.
In this arrangement, the tenant pays the landlord one to three months' rent in advance. Typically, when the rental is arranged directly through the real estate agency, they require a three-month deposit.
In other words, if the rent for the house is R$1,000, you'll have to pay R$1,000,000 in advance before signing the contract. Additionally, you'll pay the rent as normal next month.
The deposit amount is only used at the end, for example, it can be used to pay the last few months of rent, returned when you leave the house, or used to repair damage caused to the property.
The right destination must be decided before signing the contract.
This alternative is only viable for those who already have money set aside for this purpose or have time to prepare financially.
If this is not your case, the surety bond Once again, it's the best alternative. So, keep reading and see where to find it.
Where to get rental surety insurance?
In this topic, we've highlighted two companies that are leading providers of renter's bond insurance. This will help you start your research and find the best option.
Check out the options:
1. Porto Seguro Rental Insurance
THE safe Porto Seguro bail It is an alternative with advantages for the future tenant, landlord and real estate agency.
Among the main benefits it offers to future tenants is a discount on partner carriers.
This way, you can move at a great discount and avoid wasting time searching for carriers.
Plus, you can pay your rent, whether due or overdue, in up to 10 installments on your credit card. A great alternative for those months when your budget is tight.
In addition to basic coverage, the Porto Seguro rental insurance still offers additional guarantees for charges, painting and damage to the property.
Basic coverage includes rent payment and late payment fines, however, additional coverage includes:
- Condominium and IPTU;
- Damage to property;
- External and internal painting;
- Penalty for contract termination;
- Guaranteed payment of water, electricity and piped gas bills.
They vary depending on the rental option chosen. There are three insurance options: University, Basic and Essential Insurance.
Prices vary; to find out the cost of your insurance, visit the Porto Seguro Fiança website and request a quote.
To start a proposal, you must provide your CPF (Individual Taxpayer Registry), so the company can perform a registration analysis and identify and get to know you better.
2. CredPago
The product of CredPago is better known as Rent Without Guarantor. The company works in partnership with several real estate agencies, making it much easier to find a good property to rent without wasting time.
With this option, the process is a little different. First, you need to register and check on the website which real estate agencies in your area operate with the service. CredPago.
When choosing the option closest to you, visit the location and say you want to rent a property without a guarantor with the CredPago guarantee.
Next, you will need to choose a property and provide your CPF (Individual Taxpayer Registry) so that the real estate agency can perform a credit analysis.
If the analysis is approved, you will receive an email with the terms of the contract. After that, simply agree and pay the service fees.
Finally, simply sign the lease agreement with the real estate agent and start packing your bags to see the home of your dreams, which you rented without a guarantor or needing to borrow money for the deposit.
Among the main features of the CredPago surety bond, we can highlight, for example:
- Payment in up to 12 installments;
- No proof of income;
- Instant analysis.
In addition, it also offers different payment methods, including: credit card, bank slip, Pix and the possibility of paying with two cards.
Can I take out surety insurance even if my name is restricted?
Yes. The analysis performed by Porto Seguro considers several factors. Even if you have a negative credit rating, your registration must be submitted for analysis.
I have insurance and I haven't paid the rent, what happens?
The landlord or real estate agent will contact the insurance company to report the incident. The insurance company will first contact the tenant to understand what happened and what the unforeseen circumstances were.
However, she has up to 30 days to deposit the rent amount to the landlord or real estate agency.
If the tenant is unable to pay rent in the coming months, the insurer will talk to them to see what can be done without the need for eviction.
This part is resolved with the insurance company and the tenant, the landlord does not need to worry about this process or the legal aspects, if necessary.
Conclusion
As you can see, you no longer need a guarantor or ask favors from others to rent a property and have more freedom.
With the surety bond It is possible to rent the property of your dreams with great security, flexibility and speed.
So, don't miss out on this product and have the opportunity to live alone with ease!
After renting the property, you'll need to buy all the furniture, right? So, be sure to check out digital credit and installment plans. With these, you can pay for your furniture and appliances in installments without bureaucracy or a credit card!
So, take the opportunity to read it too👉How does digital credit work and which stores issue it?
