Paying guarantor: what's the difference for your rental?

When renting out their property, landlords can ask their tenants to provide a guarantor, to protect themselves against any unpaid rent. The guarantor must stand surety for the tenant's rental debts. The guarantor can be a natural person (a close friend or relative) or a legal entity (a private organization, for example). Depending on the tenant's profile, he or she can also call on a paying guarantor. What is a paying guarantor? What difference does it make to your rental lease? What are the conditions for a guarantor? In this article, Garantme tells you all about paying guarantors.

What is a guarantor?

A landlord may ask a tenant to call in a guarantor before renting out a property. Landlords generally ask for this security to avoid the risk of unpaid rent. How does it work? The guarantor undertakes to pay the rent, utilities and any late payment charges on behalf of the tenant.

Physical or moral guarantor: what's the difference?

Although the guarantor is often a relative or close friend, he or she can also be represented by a bank or an organization such as Garantme. In this case, we speak of a physical guarantor and a moral guarantor:

• The physical guarantor is a natural person (i.e., an individual). Most often, this is a parent, relative or even a friend. The guarantor undertakes to pay the rent and utilities, should the tenant be unable to do so. This is the most common form of guarantor used in rental leases.
• Moral guarantor: here, the guarantor is a legal entity such as a company, a bank or a specialized organization (such as Garantme or Action Logement, via the Visale* guarantee). The legal entity then undertakes to take responsibility for the tenant's unpaid rent in the event of default.

*Good to know : the Visale guarantee (Visa pour le Logement et l'Emploi) is a scheme set up by Action Logement. Its aim is to help tenants obtain a rent guarantee, free of charge and without a deposit. It's a free guarantee for young people or people in precarious situations.

What's the difference between a deposit and a guarantee?

The security deposit and the surety bond share a similar objective: to protect landlords against unpaid rent or charges. They are also intended to cover the cost of repairs in the event of damage to the property, throughout the rental period. The security deposit generally consists of a sum of money (often in the form of a cheque) paid by the tenant when signing the lease. This amount is then returned at the end of the contract, after an inventory of fixtures has been carried out. A guarantor is a natural or legal person who undertakes to pay the rent. This person undertakes to settle the tenant's debts if he or she is unable to pay.

Paying guarantors: an alternative to joint and several guarantees

In some cases, finding a guarantor can prove difficult. Have you been unable to find a physical guarantor? Or does the guarantor not meet your landlord's requirements? Don't worry: there are alternatives! You can opt for a paying guarantor. This is an insurer who will act as your guarantor for a fee. This mechanism works like reverse rent insurance, with the tenant as the payer.

What's more, joint and several guarantees, which involve a relative acting as guarantor, are increasingly frowned upon by landlords. For tenants, opting for a paying guarantor can help reassure landlords.

Focus on Caution Garantme, a paying guarantor to maximize your chances of obtaining a rental property.

Caution Garantme offers a number of advantages. It is ideal for tenants wishing to secure their rental file. Thanks to a solid, reliable guarantor, their file gains in credibility, reassuring landlords and real estate agencies. They'll also be sure of finding accommodation more easily.

Garantme offers coverage of up to €90,000 for rent and charges, valid for the entire term of the lease. In the event of a claim, compensation is paid within just 5 working days of notification.

Did you know? With Garantme, tenants also benefit from improved visibility when looking for accommodation. With Garantme, they join a vast network of 70,000 already certified tenants, to whom Garantme partners can propose rental offers. This increases their chances of finding a property to rent.

Garantme certifies rental files in less than 8 hours, enabling you to present a solid dossier to landlords. The Garantme certificate is issued in just 24 hours, providing concrete proof of solvency for agencies and landlords.

Paid guarantor: what conditions need to be met?

The Garantme paying guarantor offer has been designed to include a wide range of profiles. It is aimed at students (with or without income), expatriates (students or workers), young professionals, the self-employed and retirees.

To qualify, all applicants must provide proof of identity. Students must also present a school certificate or student card for the current year.

Working and retired people must provide proof of savings or detailed proof of income. Unlike Garantie Locative Immobilière (or GLI), Garantme's paid deposit does not require regular income above a given threshold. Garantme accepts various sources of income, such as standing orders, savings or social benefits, giving greater flexibility for atypical or precarious profiles.