Rent guarantee

When entering a tenancy, the tenant must usually provide security for potential damage, wear and tear or inability to pay. This is usually done with a deposit equivalent to three- or six-months’ rent. A deposit or other security in operating assets or property locks in equity that should be used for the development of the business. A rent guarantee in the form of an insurance policy would then be a good alternative for freeing up equity. The guarantee is purchased at the conclusion of the lease and is a one-off sum that cannot be returned.