In connection with the payment of the rent, the landlord and the lessee may, upon conclusion of the contract, agree on the payment of an advance rent. In common language, advance rent and rent security are often mixed. Advance rent is specifically the rent against which the tenant must obtain the period of residence. Usually he gets an advance rent for the first months of the lease, but the advance can also be refunded for, for example, the last rent.
The rent security, in turn, differs from an advance rent in that the rent security remains with the landlord throughout the tenancy. Hence, no tenancy is obtained against rent security.Advance rent can only be agreed for special reasons. In addition, the advance rent can be paid for a maximum of three months. If the lease period is for a period longer than one month, the advance rent may be agreed to be paid for a maximum of one lease period.
A particular reason for agreeing on a down payment may be, for example, that the landlord is carrying out a renovation of the apartment for the new tenant, which he is financing with a down payment.The agreement states that the tenant will pay the advance rent. In addition, the amount of the advance payment, the date of payment and the date on which the advance payment is credited shall be recorded.
Nowadays rent security is used almost without exception. The purpose of the security is to prevent interruptions in the tenancy and to safeguard the landlord’s position in the event of any interruption.The security is worth agreeing on so-called. The contract is collateral. In this case, the security can cover not only possible rent arrears but also, for example, possible damage to the apartment.
Amount of security
The amount of security can be agreed between the parties, but the most common practice is the amount equivalent to two months’ rent. The law sets the security at a maximum amount equivalent to three months’ rent. The general form of security is a separate security deposit account opened by the lessee with the bank and where the landlord receives the deposit. A security deposit can also be paid into the landlord’s account. With more info on the rented apartments, you can now expect the best.
A bank guarantee is also possible when renting an apartment, but due to its cost it is a very rare form of security. In a bank guarantee, the bank undertakes, on behalf of the tenant, to guarantee the fulfillment of the obligations of the lease.
In a self-indemnity guarantee, the guarantor undertakes to fulfill the obligations of the lease if the tenant does not fulfill them. If a personal guarantee is used as collateral, a separate annex to the contract should be drawn up.
Provision of security
Special attention should be paid to agreeing on the final date for delivery of the security and its marking. It is advisable to arrange for the security to be delivered before the keys are released. In this way, it can be ensured that the security deposit has been paid before the contract begins and the tenant takes possession of the apartment.
Failure to pay the security on the last day of delivery constitutes the ground for cancellation by the landlord. However, the right of cancellation shall cease if the security is lodged before notification of the notice of cancellation is given.