Document background
The Guarantee Rental Agreement is essential in South African property leasing arrangements where additional security is required beyond a standard lease agreement. This document is commonly used when tenants have limited rental history, in high-value commercial leases, or when corporate entities rent properties for their employees. It must comply with South African legislation, particularly the Rental Housing Act 50 of 1999 and the General Law Amendment Act, which requires guarantees to be in writing. The agreement typically includes detailed provisions about the guarantee's scope, the triggering events for guarantee claims, the process for demanding payment, and the maximum liability of the guarantor. It's particularly relevant in today's property market where landlords seek additional security for their rental income, especially in commercial and high-end residential leasing.
