Rental Guarantee

A rental contract on a commercial property typically has a requirement for a financial instrument amounting to 3 to 12 months of the monthly rental to secure against the non-payment of rent and/or the cost to rehabilitate the property at the end of the rental contract.

The financial instrument could be in the form of cash or a guarantee. For the tenant, a Rental Guarantee (Bond) is an efficient way to manage working capital as it avoids the surrender of cash. For the landlord, a Rental Guarantee is an efficient way to secure attractive long-term rental contracts.