BuySellBA
Administrator
Rentals: Everything an owner should know when deciding which guarantee should be accepted - La Nacion Propiedades
Source:
Alquileres: todo lo que debe saber un propietario a la hora de decidir qué garantía le conviene aceptar
En un contexto de inflación, la mora en los alquileres preocupa a los dueños de los departamentos; las diferentes opciones de garantías y ventajas y desventajas de cada una
www.lanacion.com.ar
February 9, 2024
In a context of inflation, rent arrears worry apartment owners; the different guarantee options and advantages and disadvantages of each one.
By Maria Josefina Lanzi
Rentals: keys when accepting a guarantee, advantages and disadvantages of each option
What you have to know
- When closing a rental contract, it is advisable to agree on a good guarantee to avoid surprises in the event of non-compliance.
- Before the repeal of the Rental Law, the tenant had to propose two guarantee options and the owner chose one. Now, this is subject to the agreement between the parties.
- The most common guarantees are property guarantees, where another person offers property as collateral, and income guarantees, where the guarantor offers his or her salary as collateral. Other options include surety insurance and bond guarantees provided by companies.
This summary was carried out by artificial intelligence under the supervision of LA NACION editors.
When offering a property for rent , it is necessary to take into account several elements to achieve good management. Among them, when closing a contract it is advisable to agree on a good guarantee, and thus avoid surprises in case of non-compliance.
Until its repeal, the Rental Law established that the tenant had to propose two guarantee options to the owner and that the landlord had to choose only one. For example, these could be a proprietary guarantee, a salary receipt and surety insurance. Now this is subject to free agreement between the parties.
To ensure that the tenant will pay in a timely manner, there are guarantees that generally consist of another person, bank, insurance or company becoming a guarantor or guarantor, who will take charge of the debt in the event that the tenant does not comply with the payment. contract.
The traditional and most common way is for a person to become a guarantor by offering property as collateral. But there are also other guarantees, such as people who offer their income as guarantee, surety insurance, guarantees provided by companies also called surety bonds, and bank guarantees. These typologies existed on the market for some time. However, it was the rental law passed in mid-2020 (27,551) that “introduced them to public knowledge, since it lists them as possible typologies to use,” clarifies Federico González Rouco, an economist on the Empiria team, the consulting firm. Hernán Lacunza.
Usually, guarantees are requested when a rental contract is signed, but it is worth clarifying that they are not mandatory. “You can sign a rental contract without any guarantee, it is totally valid, whether before or after Javier Milei's DNU; They are not legal requirements, but practical ones,” says Mariano Esper, a lawyer specialized in real estate issues, professor at the Universidad Austral and the University of Buenos Aires. In any case, the owners, to protect themselves against a default, demand them.
Most landlords prefer a homeowner's warranty, but fewer and fewer tenants are getting it.
Is the traditional proprietary warranty the best option?
This type of guarantee is the requirement that a person (relative or acquaintance of the tenant) act as guarantor or guarantor of the contract and offer as financial solvency (ability to comply with their financial obligations) a property of their property, free of embargo and of all restrictions. This option is usually the most used and provides important financial support if the tenant breaches the contract.When we talk about the guarantee, it implies that the person acts as guarantor and responds with all of his or her assets to any obligations that the tenant fails to comply with. All his assets, everything he owns, current or future. To indicate the solvency of the guarantor, reference is made to a property. That property, by practice, is real estate: it can be a house, an apartment, a lot, a field, among others.
In any case, González Rouco believes that it makes no sense to auction off a house to settle a debt for rent that was not paid and shoots: “ The property guarantee is terrible .” He considers that it is “illogical” and that it is a custom but “disproportionate” because the value of a home can be much higher than the three-year rental.
“The property guarantee is the worst of all. It was commonly used many years ago, but today the panorama has changed,” agrees Alejandro Leveroni, owner of Premium Group, a Public Limited Company that provides guarantees for renting housing, businesses or offices. Furthermore, he explains that the process of auctioning off a house is very cumbersome when someone stops paying the rent, for a debt that often does not reach the size of the value of a property. “ Normally, a property guarantee was requested even in the same jurisdiction, something very difficult to achieve , when one moved to another province and did not have anyone in their new destination who could offer them a property as guarantee,” he adds and points out that “It doesn't solve anything for the owner who stops collecting and has to start putting up money to cover the services in his name and pay a lawyer to start the eviction which, in the best of cases, takes approximately a year.”
On the other hand, Esper considers that the owner guarantee constitutes the best option : “ If the tenant does not comply , the owner will have a guarantor, who is civilly liable with all his assets, in this case with a specific property that was indicated as part of his heritage. When the owner claims the money that the tenant did not pay, he can initiate litigation and seize the guarantor's property to pay the debt owed. “It is the strongest guarantee and the one with the most value, since it covers all the responsibilities that the tenant assumes in the contract,” emphasizes the lawyer specialized in the sector.
What happens if I don't have a property to offer as collateral?
A person can be a guarantor or guarantor offering their property as collateral, but they can also be a guarantor offering their income as a backup guarantee , something that often happens when the tenant does not have a property or a close person who can appear with their property. as guarantor. In that sense, the capital support to guarantee compliance with obligations is income.“ If a person wants to be a guarantor , but does not have a field, an apartment or a house in their assets and only has a monthly income , then what will respond to pay that debt is the salary ,” explains Esper. In this way, salary receipts or billing levels can be shown if you are a monotributista or self-employed person, where your income can be proven.
The rental supply has increased recently, after the law was repealed.
However, only part of the salary can be garnished , so if the only financial support available is the salary of the person applying as guarantor, the owner will be limited in what he can collect . In other words, if a judicial measure is obtained to demand payment of the debt, only a part of the salary will be used month by month to pay what the tenant owes.
It is important to clarify that beyond the guarantor, the tenant always responds with his assets, to settle any debts he owes . The guarantor is a second party responsible, which the owner has, in case the tenant does not pay. That is to say, for the owner, there are always two parties responsible: the tenant and the guarantor.
How to obtain a bank guarantee, company guarantee or surety insurance?
When you do not have a property to support the rental contract and you do not want to ask another person to be a guarantor offering their income, it is also possible to go to a bank, a company or an insurance company , so that they become responsible. if the tenant does not pay. In practice they work like car insurance: if you get hit, you go to the insurance you have contracted to pay for the repair. In the case of a property, tenants pay an amount that will settle the debt owed, in the event of default.Within these possibilities, Rouco believes that surety insurance and bail guarantee are the best. “Either option is preferable to a proprietary warranty . If you want to rent and you don't have - for example - an aunt who has an apartment to put up as collateral, it's going to be very complicated for you." He explains that, for the tenant, it is possible to access insurance of this type, without having to depend on a support network of people with properties. In addition, for the owner, it is easier to take action in case of non-compliance.
On the other hand, the specialist clarifies that between surety insurance and bail insurance, he prefers the first, which is regulated by the National Insurance Superintendency. Furthermore, to be an insurance company, a series of requirements must be met; In the case of the surety bond provided by companies, he explains that they have the minimum regulation of any business, but not at the level of an insurer. On the other hand, Leveroni maintains that insurance companies were never interested in homes, small businesses and offices, until surety companies created the demand for a practical alternative and adds: “While insurance companies are dedicated to mass products, we are "We dedicate ourselves to a very personalized topic: each case of non-compliance requires an appropriate response."
In this sense, Esper points out that these types of guarantees “are safe, but more limited, because the owner will collect, but it will not always cover everything . ” He explains that, in general, they cover the rent that was not paid, they could include non-payment of expenses and a minor fine, but they usually do not cover other non-compliance by the tenant, such as electricity, gas or damage to the property.
A bank, a company or an insurance company can be held liable in a rental contract if the tenant does not pay.
Esper shares with Rouco and Leveroni the view that there is not always a property to offer as collateral: “It often happens that the tenant does not have a friend or relative who has a property, so the only way he can "To obtain a guarantee is to offer a surety insurance company or a company that acts as guarantor."
Leveroni explains that, from his company, bond guarantees cover more than insurance companies , and says that, in his case, they extend the coverage until the return of the property. “Our guarantee ends when the apartment is returned,” he says, adding that it is a solution that benefits all three parties: for the tenant who needs something that guarantees it and can pay; for the owner, which transfers the problem to the insurer and allows the homeowner to be provided with “a better tenant.” And it also benefits the real estate agency, because “we solve things easily and quickly.”
Where appropriate, they take as counter-guarantee the income of the tenant and another person, if necessary. If the tenant's income is not enough, he can add someone and cover the amount they request to hire the deposit . They accept income from a person from all over the country, not necessarily located in the same jurisdiction. Where applicable, the guarantee covers all non-payment by the tenant, the only thing left uncovered is the condition of the property (possible damage to the property), unless another fee is paid.
When talking about this type of guarantees, an in-depth study of the tenant is usually carried out, where it is reported whether they have the solvency to pay what they are facing as a commitment and their good financial behavior is studied, that is, if they are a debtor or if they have with trials.
www.buysellba.com
