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What is a deed of guarantee? Practical guide for landlords

When renting out a property, landlords often seek to protect themselves against any unpaid rent. The deed of guarantee is an essential legal tool in this process. France Ermitage can help you understand and set up this deed to guarantee the security of your investment.

This practical guide will explain in detail what a deed of suretyship is, what it's for, the different types of suretyship, and how to draw it up correctly.

What is a deed of suretyship?

A deed of guarantee is a legal document by which a person, called a "guarantor", undertakes to pay a tenant's rental debts in the event of the latter's default. This commitment generally covers rent, service charges and, in some cases, any repairs or damage to the rented property.

Why use a surety bond?

For a landlord, a surety bond is an additional financial guarantee that limits the risk of non-payment. By working with France Ermitage, you benefit from solid expertise in setting up this guarantee. We'll help you choose the type of surety bond best suited to your situation, and draw up a deed that complies with legal requirements, so you can optimally secure your rental income.

The different types of bond

There are two main types of surety bonds, and France Ermitage can guide you in selecting the one that best suits your needs:

Simple surety bond In this case, the security deposit is only required if the tenant defaults and after all collection procedures have failed. France Ermitage supports you in this process, ensuring that all legal procedures are followed.
Joint and several guarantee This is the most secure form for the landlord. The joint and several surety can be called upon as soon as the first payment is missed, without the landlord having to turn to the tenant first. France Ermitage often recommends this type of guarantee for its simplicity and effectiveness, and helps you to set it up correctly.

How do I draw up a deed of guarantee?

There are strict legal requirements for drawing up a deed of guarantee. France Ermitage ensures that all steps are taken to guarantee the validity of the deed:

Mandatory written form The deed of guarantee must be drawn up in writing. France Ermitage will help you to draw up a clear and compliant document, whether included in the rental agreement or on a separate document.
Mandatory legal information Certain information must be included in the deed:
- Rent and rent review conditions.
- A clear, handwritten undertaking by the guarantor to pay in the event of default by the tenant.
- The duration of the guarantor's commitment (which may be for a definite or indefinite period).
- A handwritten statement by the guarantor to the effect that he/she is aware of the nature and scope of his/her commitment.
Signature of guarantor The deed must be signed by the guarantor to be valid. France Ermitage will assist you in verifying and recording the signatures, thus guaranteeing the solidity of your guarantee.

Duration of the guarantor's commitment

The guarantor's commitment may be for a definite or indefinite period:

Fixed term: The deed of guarantee specifies a period during which the guarantor is committed (for example, for the duration of the initial lease). At the end of this period, the guarantor is released from his commitment.

Indefinite duration: If no duration is specified, the guarantor remains committed as long as the tenant is in the property, even in the event of tacit renewal of the lease. It is therefore essential to inform the guarantor of the implications of an open-ended commitment.

The landlord's obligations

As a landlord, you have legal obligations towards the guarantor. France Ermitage can help you ensure that you meet these obligations, such as informing the guarantor of any rent review, so as to maintain the validity of the deed of guarantee.

The deed of guarantee is a powerful legal device for securing rental income. As a landlord, you can count on France Ermitage's expertise to guide you in setting up this essential guarantee. We'll help you understand the legal aspects, draw up compliant documents and secure your rental income effectively. With France Ermitage at your side, you can manage your real estate assets with complete peace of mind.