Increasing the rent guarantee from two to three months is a proposal that has been on the table for some time.
Nevertheless, several parties stated that they would not just agree with this. One of the most important parties that could not just give approval was CD & V. They found that increasing the amount for the rent guarantee from two to three months could make it considerably more difficult for (young) tenants to still pay the deposit + the first month’s rent. To solve this problem, CD & V proposed to offer an interest-free loan to (new) tenants. In this way it had to be financially easy for them to still be able to pay the rent guarantee and the first month’s rent.
Higher guarantee for tenants
The higher rental guarantee would be a requirement because the cost of rental damage and non-payment now made often mean a significant loss for landlords. That said, the higher guarantee obviously increases the threshold for tenants. They must now no longer take into account two months’ rent as a guarantee, but three at the conclusion of a new lease. In addition, the first month rent must also be paid on top of that. Especially when a larger home is rented, this can be too high for many people financially. Partly for this reason, an interest-free loan for paying the rental guarantee could be a good idea.
Anonymous interest-free loan
In order to be able to solve the higher financial requirement, an interest-free loan combined with a smooth procedure seems to offer the solution. A procedure that is as efficient as possible is a requirement because tenants may otherwise run the risk of still seeing their desired rental property pass by. In order to prevent such a situation, it is possible for potential tenants to request a prior approval of their lease guarantee credit in advance. In practice, this ensures that tenants can already have the amount of the loan in their bank account within three days.
Conditions for taking out interest-free loan for rental guarantee
As to the exact conditions that you as a borrower will have to meet to obtain the interest-free loan for a rental guarantee, not much is known so far. However, it is certain that the basic conditions will be similar to another specific credit that would be taken out. In concrete terms, therefore, two points must be taken into account:
- It must be demonstrated that the borrowed amount can be repaid;
- It must be clearly demonstrated that the loan is actually taken out to pay the required rental guarantee;
- The amount of the loan must be repaid within 2 years (with a possible extension of 6 months);
The fact that more and more new tenants will have to take out a loan for their rental guarantee seems a bit annoying at first sight, but in practice this does not have to be a disadvantage at all. The fact that this concerns an interest-free loan that does not involve any costs ensures that no account should be taken of any financial disadvantage, on the contrary.
Extra important condition for obtaining interest-free loans
The conditions stated above are in principle fairly standard for the moment when a certain funding is requested. Yet there is another condition that needs to be taken into account. This concerns the fact that the tenant who applies for the interest-free loan may not own a certain property. Is that the case? Then it is no longer a possibility to apply for this loan. At first glance this does not seem to be a problem at first sight, but what about people who, for example, have partially become owners of a house from an inheritance? They usually do not receive income from this, but they can not take out the interest-free loan. This is certainly something to keep in mind.
How to apply for the rental guarantee loan?
The new lease rules will take effect from 1 January 2019. From this moment on, it will therefore also be possible to apply for the lease guarantee loan. This is an anonymous and interest-free loan that in principle must be able to be taken out by all potential tenants. Applying for the loan must take place. The tenant must also take into account that the amount provided must be repaid within 2 years. However, in practice six months of space seems to be possible.