Document background
The Guarantee Rental Agreement is a crucial document in German property rental transactions, particularly when landlords seek additional security beyond standard tenant deposits. This agreement is commonly used in situations where tenants may have limited credit history, are students, or in high-value commercial leases. The document, governed by German law, establishes a three-way relationship where a guarantor (often a parent, relative, or corporate entity) agrees to assume responsibility for the tenant's obligations under the rental agreement. It must comply with strict formal requirements under the German Civil Code (BGB) and includes specific provisions regarding the scope of guaranteed obligations, enforcement mechanisms, and liability limits. When the guarantor is an individual, additional consumer protection provisions may apply, requiring specific warnings and acknowledgments to be included in the agreement.
