Many of the most common questions we have come across over the last several years have been included below. If you have a question that is not on this page, please go to the Contact Us page and fill in your information and question and we'll get back to you within 24 hours
RENTAL GUARANTEE BONDS - Frequently asked questions:
What is a Rental Guarantee Bond?
A Rental Guarantee Bond is a guarantee to pay rental and covered related outgoings under a Lease to the
Landlord in the event that the tenant defaults on its lease payments. Outgoings requiring cover are specified in the
application form.
For how long does the Rental Guarantee Bond pay the rental?
From the time of default, to the maximum term of the Guarantee depending on the
length of cover requested. This is referred to as the Indemnity Period. Bonds can be provided for payment periods
of up to 12 months for residential tenants and 36 month for commercial tenants.
Are additional expenses such as Damage to the property by the tenant and eviction costs covered?
Yes, providing they are declared in the application.
What should a Landlord do in the event of a payment default by the tenant?
The Landlord must notify Guardian of a potential claim within 10 days first unpaid rental. This is an
important requirement, so that Guardian can maximize any recovery possibilities against the defaulting tenant, and minimize the vacancy time. Local rules must be followed while dealing with the tenant default.
Once a default has occurred the Landlord must consult Guardian before taking action against the tenant.
What must the Landlord do in the event it wishes to claim?
Fill out simple online claims form, submit with court judgment and eviction documents, and the claim will be processed within 7 business days of complete submission.
How much does it cost?
It depends upon the indemnity period, the tenants credit, background, employment,income,and the term of the lease. Please use the Calculator for estimates.
Who pays for the Rent Guarantee?
The Bond is paid for by whichever party that wants it, - either by the Landlord, or by the tenant. Sometimes the
Landlord allows for the one-off cost in assessing the rental, and is able to spread the cost over the term of the
lease.
Is there a claim excess?
There is NO wait period for the Un-paid Rent Guarantee.
Up to what value can the Bonds be issued?
Rental Guarantee Bonds to a maximum exposure of up to $500,000.
How do we apply for a Rental Guarantee Bond?
Please fill out an online application form. The tenant screening will be conducted instantly ( in most cases) and the Rent Guarantee can be issued within minutes.
What does a tenant have to provide for a Rental Guarantee Bond to be issued?
The tenant will need to show Guardian that it has a certain amount of financial substance in order to qualify.
The Rental Guarantee Bond is effectively guaranteeing the rental obligations of the tenant, and agreeing to pay the
rent to the Landlord in the event of the tenant defaulting. Therefore Guardian will carefully assess the
creditworthiness of the prospective tenant and the ability to pay the rent. If a claim under the Rental Guarantee Bond is made, then Guardian will pay the rental obligations
that the tenant has defaulted on, and will seek to recover against the tenant. There will often be personal
guarantees required from the tenant at the time of application.
How do I become a Guardian Landlord and what is the cost?
To become a Guardian Landlord, please fill out the application on the Landlord page and submit. To be able to use Guardian Check, our tenant screening service components including the ability pull credit reports, you must be approved as a Guardian Landlord, and a site inspection must be performed. A fee is of $149, is charged for the site inspection. The annual Membership fees are based on the type of membership desired. Please check the Membership page.
I have a ten-unit property; can I still become a Guardian Landlord?
Guardian
Rent does not have a unit limit or requirement in order to become a Guardian Landlord.
I offer short-term leases; can my tenants still qualify for the rent guaranties?
Yes, your clients can qualify for rent guarantees. There is no lease term limit or requirement to qualify for the rent guarantee since the risk of non-payment of rent and the associated legal fees and/or damage to properties still exist.
My tenant has been paying their rent on time for the last 8 months and just defaulted. Their rent guarantee is a 6-month program; can I still file a claim?
Yes. The rent guarantee is based on the amount the protection is for not the time limit. Your client defaulting now or at the beginning of the lease term does not have any bearing on the claim.
Being a Guardian Landlord, you are already entitled to the Guardian Action Plan. Therefore, time into the lease has no bearing as to when you would like the eviction process to begin. If you are an executive member and had an executive guarantee in place on this tenant... Eviction service is provided FREE of charge.
You will still qualify as a Guardian Landlord as long as your home office is a closed off area and you do not pull credit from anywhere in your home except your office.
Our services are fully automated, therefore you will be able to run credit on your prospective tenants directly off of our web site. You will receive your report in seconds and will be able to make an informed decision while the tenant is with you.
My prospective tenant wishes to dispute a trade line on their credit report, do they handle that on his or her own or does Guardian Rent take care of that?
If the dispute is valid we can handle that in our offices.
Do you include credit repair with your tenant screening services?
No. We are not a credit repair agency.
The turn around time is 7 to 10 business days but this will depend on how quickly you submit the remaining documentation needed to complete your file for review and approval.
Since the original tenant is on the lease, they would be responsible for the payment regardless of who is sub-letting the unit. There fore there is no need to transfer the rent guarantee.
They simply need to fill out new paperwork, sign and date it and their guarantee will be renewed.
Because our services are available nationwide we must comply by each state's set of tenant laws. Therefore it will depend on the jurisdiction you are in.
Yes, it is up to you on how to recover the cost of the guarantee if you wish for it to be mandatory at your facilities.
If this lease was covered under the 12 month rent guarantee then the landlord would be entitled to lease payment under the (TIP) Total Investment Protection.
The approval for a rent guarantee is not score driven. We offer 100% approval.
Once there has been a change of tenancy, the rent guarantee should be updated with the correct applicants information as you would require it for your lease. If the remaining tenant's name is not on the lease or guarantee then we are not responsible.
Yes. You can pull credit on any two people jointly.
Yes, that is possible using a simple procedure.
No appearance necessary in most cases. Your assigned attorney will advice and coordinate with you.
Un-Paid Rent