Security Deposit and Guarantees: How to Protect Yourself Before Renting

The security deposit is the first line of defense, but it has limits. Combined with solvency scoring and rent guarantee insurance, it becomes a real safety net.

The problem

A one or two-month security deposit seems like protection — until the tenant stops paying for eight months. The deposit covers a minimal fraction of the actual loss from a prolonged default.

The available layers of guarantee

• Security deposit — covers damages and short periods of non-payment.
• Guarantor — reinforcement, but with slow and uncertain enforcement.
• Solvency scoring — assessing financial capacity before signing.
• Rent guarantee insurance — guarantees payment even in default.

Where the real loss lies

The security deposit resolves weeks; the problem is measured in months. It is in this difference that a five-figure loss lies. Knowing the exact exposure, before signing, changes the decision.

Frequently asked questions

How many months of security deposit can I ask for?

The regulations have limits; the contract must clearly specify the amount and purpose of the security deposit.