Document background
The Lease Guaranty is a fundamental document in Swiss property leasing, required by landlords as security for tenant obligations. It is commonly used in both residential and commercial contexts, with the guarantee amount typically ranging from 3 months' rent (residential statutory maximum) to potentially higher amounts for commercial properties. This document becomes necessary when entering into new lease agreements or when replacing existing security arrangements. The guarantee can be provided by banks (in the form of a bank guarantee), insurance companies (as a guarantee insurance), or individuals (as a personal guarantee), each subject to specific requirements under Swiss law. The document must comply with strict formal requirements under the Swiss Code of Obligations, including written form and maximum liability amount specifications. It serves as a risk mitigation tool for landlords while providing a structured framework for guarantors' obligations.
