What is a rental warranty?
Leasing warranty is a type of legal contract. It is used to ensure that the party grants the lease will receive lease payments that are due in time. In essence, this type of situation creates an agreement on a mosquito in which the person agrees to pay money that is owed if the person who signed the lease fails. The party called the guarantor, which agrees to sign the lease warranty, guarantees payment for another party.
Often, when a person has assets, equipment or assets that offers for leasing, looking for candidates who have good credit and leasing. The landlord who is a person who provides a lease can priority to these individuals because they are considered less risky. The landlords want to be paid in time and those who have a good credit history seem to be the most likely in this way. In some cases, howeverDespite the fact of a good credit or established history of leasing. Can allow the person to sign rent if he can obtain a guarantor with a good credit to sign a rental guarantee on behalf of.
The lease guarantor accepts a high risk when signing the rent warranty form. People often do this because they fully believe that people they help will make timely payments. Unfortunately, this will not always happen and the person concerned may agree on the agreement. This leaves the guarantor to take over payments, despite the fact that he usually does not receive any of the benefits of rented assets or equipment. If the guarantor cannot make payments or refuses, the landlord may sue him and the lessee in court; This could also cause the creditor's credit score to suffer.
Often people turn to close friends and family members to help them when they need a leasing guarantee. For example, a person can ask their parents to beEven the guarantor for their first housing rental. Likewise, a person can ask his friend to be his guarantor of equipment he must rent to start business. In some cases, however, the company can act as a guarantor. For example, it can guarantee the payment of rents on behalf of foreign companies that are good risks.