It is very interesting to know well the bail bond, how it works, advantages and disadvantages, so WELCOME TO BONDCLIFF.
Mainly because one of the biggest obstacles at the moment of finalizing a property lease negotiation is precisely finding the guarantor figure. The surety insurance avoids the uncomfortable feeling of having to ask a favor from a third party.
This ends up being a much bigger challenge than finding a place that can bring more comfort and convenience to your family, be close to work and have easy access to city services.
In this article, you will find out what is safe-bail, how it works and what its features are, to make the right choice in your sample rental agreement.
As we have shown in the local bail bond and how it works for the tenant, another point to note is that the cost of that collateral can be a disadvantage to it.
Many interested in renting a property is not able to afford this expense, which is an additional amount in relation to the rental value and the condominium.
Therefore, in some cases, there is a margin of negotiation with the owner so that the arches with part of that investment. Or reduce the amount charged in the rent.
The hiring of insurance happens after the proof of income, which should be equivalent to four times the monthly rent value by the tenant. In general, insurers allow this rent to be made up of up to three residents of the property.
As pointed out in the advantages for the owner, in case of default, it is sufficient that he communicate the delay to the insurer and he will receive the amount outstanding in up to 30 days. This payment will continue to be made monthly as long as there is no settlement with the tenant.
The surety bond is one of the guarantees provided for in Law 8,245 of 10/18/91, which provides for leases of urban real estate.
The other ones, as mentioned above, are the deposit with a check or guarantee bail to third parties. These guarantees serve to give confidence that the tenant is a good payer.
But to understand what all this entails, do you have to understand what bail is? This is the act of paying someone else’s obligation. It is a kind of contract that is provided for in the Civil Code.
So usually, asking someone to be your guarantor is not a very quiet attitude for almost anyone, even when this request is made to a relative or friend.
The truth is that very few people are willing to be guarantor because this will also be taking responsibility for any debts left by the tenant.
And it is not only taking over debts without any major consequence, in many cases, as a property of the guarantor is placed as collateral of the collateral, in case there is delinquency even exists up to the risk of the attachment of the property.
Therefore, in the case of the surety bond, the insurer is contracted to give this protection through a policy. And it is the insurer that is responsible with the lender to fulfill the obligation to pay rent amounts if the tenant does not comply.
For those who are still in doubt and want to know how insurance surety insurance works, it is interesting to know the data provided by Secovi-SP, that this guarantee has become much more common in the last decade.
The number of contracts with this guarantee increased from 15.1% of the leases registered in May 2007 (beginning of the measurements) to a percentage of 20.5%, which remained from July 2011 to August 2013.
In the last five years, this percentage had a slight reduction and, in December 2016, 17.5% of the rental agreements signed in São Paulo used this lease guarantee, according to data from Secovi-SP.
When the issue is to understand the surety bond how it works for the homeowner, the good news is that it is always advantageous for the homeowner.
This is because the insurer begins to pay the rent immediately in case of default by the lessee. In the other warranty options, it only receives after the eviction occurs, when the issue arrives at this point.
This is one of the main reasons why this guarantee is preferred by the owners. Usually, they choose the guarantees they prefer, and the tenants need to adjust.
But the truth is that most of the time, the security is taken care of by the tenant, who must clarify everything with his freelance broker or the real estate agent so that the matter is taken to the owner.
But that does not exempt you from having to take any of the three guarantees if you want to lease the property.
On the other hand, even understanding how surety bond works for real estate leasing, the tenant should know that this is not always the best option among the guarantees for him since it will cost about 1.5 times the rent amount.
Another disadvantage is that there is no refund of the amount paid after the end of the contract.
On the positive side, knowing about the surety bond, how it works, is positive for avoiding the embarrassment and bureaucracy of seeking a guarantor, besides giving more agility in the leasing process. It still avoids the immediate disbursement of high value, since the amount is parceled out by insurers.
In addition to the owner of the property and the tenant, the real estate companies, because they know everything about suretyship, how it works and its advantages, these companies also benefit when the insurance is chosen.
They do not receive a commission on this sale, but with this guarantee, the insurer starts to have the cost of the renter’s credit analysis.
The certainty of the payment of rent also brings stability in the receipt of the administration fee of the property.
The term of validity of the surety bond may be annual, with mandatory renewal while the lease is in force. Or you can contemplate the entire contract period, not requiring annual renewal.
But under the Tenancy Act, after you opt for the surety bond, the renter cannot give up renewing the contract by choosing another type of security.
In general, the choice between these options is the owner of the property and can be negotiated between the tenant with the owner or the real estate agent.
And if the tenant’s or the landlord’s hesitation is about how collateral-to-rent coverage works, it’s important to know that it begins and ends at midnight on the date specified in the policy.
But even after maturity, the foreseeable risks will remain covered until the tenant finalizes its obligations, except for cases of cancellation or loss of the right to cover.
In addition, the owner of the property can choose the period of validity according to the type of rental that will be made (residential, non-residential or commercial).
In general, the insurance is hired on behalf of the tenant and must be at least 18 years old. Among the minimum documents that must be presented to the insurer are:
If the future tenant is an independent or professional, he must present the Income Tax and the current account statement for the last three months.
And if you lived in a rented residence, in addition to the pay stubs for the last three months, many insurers ask for a copy of the rental agreement. Or a real estate or owner contact to attest that he was a good payer and left no debt.
There are many insurers who negotiate this guarantee for a property rental negotiation. There is, for example, a safe-haven option Porto Seguro and several other companies.
In any one of them, there are particularities and then you need to make quotes, either to know about Seguro Seguro, how it works and all its contractual clauses.
You may also want to know c atom works surety bond, in as other insurance companies, to have more pricing options and benefits.
The basic coverage of the surety bond guarantees the payment of the rent and of fines to the owner of the property, in case the tenant defaults. However, additional coverages such as condominium, IPTU, water, piped gas, electric power, paint and even damage to the property can be hired.
Insurers have also sought to offer new services linked to the surety bond to make this option more attractive and advantageous to the tenants.
With this, it is possible to find companies that have the guarantee with coverage for electrical and hydraulic maintenance or even 24-hour emergency services, such as key chain and repair of household appliances, residential cleaning, glazier and even surveillance.
Who chooses what coverages the insurance will have is always the owner of the property. Thus it can also include the payment of expenses of the eviction process and even the legal fees.
It is important to remember that asking for many coverages will increase the cost of insurance and will make it difficult to rent the property.
If you are thinking of renting a property and will need to hire insurance because you do not have a guarantor, talk to the real estate agent and negotiate with the owner!
Lastly, it is important for tenants to know that there is a free-of-charge secured form. In this case, although the idea of being gratuitous is sold, someone will bear this expense: the owners.
But if many landlords can think what is the advantage of this if they will have to bear this expense?
Some real estate companies have launched the idea to give more agility in the process of leasing the property, by offering this advantage to future tenants.
Also defended is the idea that paying a surety bond is also advantageous for the owner to cover costs while the property is empty, such as IPTU and condominium.
You need to check if the real estate company where the tenant will look for property has this option available.
Now that you already know the characteristics of this lease guarantee, you will have greater bargaining power.