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Living in Paris • Residential Topics
Bank guarantee
Most of our rental customers are covered by a guarantee from their company which undertakes to pay the rent. If this is not the case, the Landlord can demand a bank guarantee to ensure the rent is paid.
The Tenant must then provide a guarantee from a banking institution established in France, when signing the contract.
The bank guarantee usually represents an amount equivalent to 12 months rent and may be renewable if the tenant extends his/her stay. The duration of this guarantee is that of the contract. It therefore ceases when the tenant leaves.
A bank guarantee has a cost. For example, for this service the banks charge between 0.5% and 3% of the frozen amount, plus they add a lump sum for administration costs (€100 to €200). The frozen money is invested and can earn interest safely.
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