Rent guarantees without deposit

MsUK · #1 03.11.2020, 12:39

Hi all, any advice on these companies - like SmartCaution? Or other suggestions as I can't pay three months rent upfront!

Sean Connery · #2 03.11.2020, 12:44

SwissCaution
FirstCaution

Two more I know of, the first I've used and the second has a B2B relationship that made me aware of them.

MsUK · #3 03.11.2020, 13:12

RIP 007! Thank you for advice beyond the grave!

And which would you recommend? Or are they all much of a muchness?

Sean Connery · #4 03.11.2020, 14:14

	Quote:	MsUK
	RIP 007! Thank you for advice beyond the grave! And which would you recommend? Or are they all much of a muchness?

I only have used SwissCaution who were the first, AFAIK, to this market. They were fine, problem-free.

Evulmonkey · #5 04.11.2020, 11:43

I used AXA and it was very painless.

https://www.axa.ch/en/private-custom...xoC0IUQAvD_BwE

Castro · #6 04.11.2020, 11:45

Bear in mind that not all estate agents or landlords will accept them e.g. mine.

Axa · #7 04.11.2020, 12:09

	Quote:	Castro
	Bear in mind that not all estate agents or landlords will accept them e.g. mine.

Indeed, this is the issue. There's no risk for the tenant by using a depositless mietkaution, all the risk is beared by the landlord and they're the ones deciding if it works or not.

Also, 3 months is not common. The usual is 2 months.

MsUK · #8 04.11.2020, 19:08

Awesome - thanks both.

fatmanfilms · #9 04.11.2020, 19:12

	Quote:	Axa
	Indeed, this is the issue. There's no risk for the tenant by using a depositless mietkaution, all the risk is beared by the landlord and they're the ones deciding if it works or not. Also, 3 months is not common. The usual is 2 months.

There is huge risk to the Tennant that the insurance company will come after the tenant......

swissfi · #10 04.11.2020, 19:34

Have used Swiss Caution 3 times without any problems at all

Axa · #11 04.11.2020, 20:17

	Quote:	fatmanfilms
	There is huge risk to the Tennant that the insurance company will come after the tenant......

IF you break something above the insured amount?

fatmanfilms · #12 04.11.2020, 20:20

	Quote:	Axa
	IF you break something above the insured amount?

Fail to pay the rent & any excess not covered by insurance. It's essentially a fairly expensive loan.

eyebeebe · #13 05.11.2020, 10:41

	Quote:	Axa
	IF you break something above the insured amount?

What insured amount?

At least with SwissCaution there is no insurance involved. Rather than it being an expensive loan as FMF says, it is essentially a paid for guarantor. You are still liable for any damage you cause. Whether you have a separate liability insurance to claim on is completely separate to the rental deposit. I 100% recommend having this insurance and I think most landlords insist on it. If SwissCaution have to pay out, they will chase you for the damage, which you contractually liable to them for.

NotAllThere · #14 05.11.2020, 11:35

	Quote:	Axa
	Indeed, this is the issue. There's no risk for the tenant by using a depositless mietkaution, all the risk is beared by the landlord and they're the ones deciding if it works or not. Also, 3 months is not common. The usual is 2 months.

I knew a case where the tenant was billed 14K. 8K by the landlord and 6K by SwissCaution (the guaranteed amount to the landlord).

Axa · #15 05.11.2020, 11:56

Thanks for the eye opening explanation.

If I damage something, the caution company will pay the landlord and charge me the exact amount of the damage. All the money paid to the caution company is just to have access to a pre-approved loan in case of damage? Is that right?

NotAllThere · #16 05.11.2020, 13:17

	Quote:	Axa
	Thanks for the eye opening explanation. If I damage something, the caution company will pay the landlord and charge me the exact amount of the damage. All the money paid to the caution company is just to have access to a pre-approved loan in case of damage? Is that right?

Effectively your fee is to pay for the loan. But technically not, as the money never is under your control.