Document background
The Rent Guarantee Agreement is commonly used in both residential and commercial leasing contexts in Germany, where landlords seek additional security beyond standard lease provisions. This document becomes particularly relevant when tenants cannot provide sufficient security deposits or when dealing with high-value commercial leases. The agreement must comply with German law requirements, particularly the written form requirement under §766 BGB. A properly structured Rent Guarantee Agreement will clearly define the guaranteed obligations, including rent payments, ancillary costs, and potential damages, while specifying the maximum liability amount and duration of the guarantee. It serves as a critical risk management tool in the German real estate market, providing landlords with additional security while facilitating access to rental properties for tenants who might otherwise struggle to secure a lease.
