The loan for the deposit is increasingly in demand in Germany. In the metropolitan areas in particular, rental prices have almost exploded in recent years. The rise in rents naturally also affects the rent deposit. Landlords are required to pay up to three months’ rent. Anyone who wants to have the apartment has no choice but to pay the deposit. Security loans are therefore in demand like never before.
Credit for the deposit – what are the options?
The loan for the deposit could come from various sources. First, it should be explained that there are basically two different variants of surety loans. The most common variant is the installment loan or bank guarantee. The second variant, known as a surety loan, is offered by insurers. It is also a guarantee. This time an insurance company acts as a guarantor. Payment is made in small monthly contributions.
At first glance, using a guarantee for the deposit has many advantages. Neither the savings saved need to be touched nor a loan has to be repaid. Even if the landlord goes bankrupt, there are no problems. At first glance, the only disadvantage is the permanent monthly payment. Anyone who tries this way will quickly find another disadvantage. Most landlords do not accept a guarantee. The reason for this is not a bad reputation of the guarantor. It is the fact that many landlords want to work with the deposit money themselves.
Cash as rent deposit improves the chances of renting
Before a property can be rented today, the landlords often have to invest heavily. The new energy regulation has forced landlords to undertake expensive renovation measures. Many landlords had to take out a loan. In big cities it is still no problem to rent even the most expensive apartments. Munich would be an example of this. According to the rent index from January 2013, an 80-120 sqm apartment costs up to 30.10 dollars / sqm rent per month.
With a three-month rent deposit, this corresponds to a rent deposit of 9030 dollars for a 100 sqm apartment. The landlord now has a choice. He can accept a guarantee or let the deposit work for him to reduce interest. If he chooses the guarantee, he gives away more than 450 dollars a year. The calculation example proves that hardly a tenant can avoid the loan for the deposit.
Who offers the cheapest financing for the rental deposit?
Whenever it comes to cheap loan terms, it is worth taking a look at the Internet. Online loans are often significantly cheaper than a house bank loan. In most cases, the loan for the deposit is part of a small loan.
Small loans are easy to apply for, rarely require special collateral and are paid out quickly. The small installments, with long terms, take the fear out of even the biggest bail.