Glossary Security deposit — vocabulary in context
Blocked account, return, interest.
5 definitions · 1 clustersView by concept
1 semantic hubs · 5 connected terms
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R
Rental guarantee →
The rental guarantee is a sum of money deposited by the tenant at the start of the lease to cover any breach of obligations. In Belgium, it is capped at 2 or 3 months' rent depending on the Region and formula chosen.
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Security deposit
The security deposit is a sum of money paid by the tenant at the start of the lease and placed on a blocked bank account. It is returned at the end of the lease after deducting any damage or unpaid amounts.
Bank guarantee
A bank guarantee is an alternative to a cash deposit where the bank guarantees the landlord up to 3 months' rent. The tenant gradually rebuilds the amount through monthly instalments.
Joint surety
A joint surety is a commitment by a third party to pay the tenant's debts (rent, charges, damage) if the tenant defaults. The landlord can pursue the guarantor directly without having to pursue the tenant first.
Do not confuse
Bank guarantee vs Rental guarantee
A bank guarantee is an alternative to a cash deposit where the bank guarantees the landlord up to 3 months' rent. / The rental guarantee is a sum of money deposited by the tenant at the start of the lease to cover any breach of obligations.
Rental income guarantee vs Rental guarantee
A rental income guarantee is an insurance or contractual mechanism protecting the landlord against unpaid rent. / The rental guarantee is a sum of money deposited by the tenant at the start of the lease to cover any breach of obligations.
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