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What options are there if you don’t have an endorsement and want to rent a property?

Currently, it is not impossible to rent a property if you do not have an endorsement between your family and acquaintances. Consider these options and you can find a home that suits your needs.

December 1, 2020 4 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

Having a guarantor who takes some responsibility can be difficult for many people. However, there are several possibilities to rent without having one. Arrendavit is the first option you can turn to to rent a home according to your needs.

When renting a property, one of the main requirements that you will be asked for is a person who supports the operation. But if you don’t have one, what happens? The real estate portal Propiedades.com indicated what options there are if you do not have an endorsement.

What is a guarantee?

The guarantee is a legal figure that acts as a guarantee in case the tenant cannot pay the rent agreed in the contract. Although this term can be confused with surety, it is important to know the difference.

The General Law of Titles and Credit Operations contemplates the notion of guarantee, which is commercial. On the other hand, the title of guarantor is regulated by the Civil Code and provides a surety bond for the owner.

Image: Unsplash

Federico Sobrino, director of Infonavit, explains that the guarantee is a joint obligation with the payment of the rent and the delivery of the property at the moment in which the tenant cannot do so. Therefore, this person must follow up and fulfill the obligations of the tenant.

Having a guarantor to take on these responsibilities can be difficult for many people. However, there are several possibilities to rent without an endorsement.

The Infonavit alternative

Arrendavit is the first option you can turn to to rent a home according to your needs. However, you must bear in mind that to get this support from Infonavit you have to meet some requirements:

As a guarantee, the amount of your subaccount must be greater than 6 months of rent

The monthly rental price must not exceed 25 percent of your salary

The minimum term of your contract must be for a minimum of 12 months

If your application is approved and you have chosen the property you want to rent, the institution will be in charge of paying the monthly payments. In this way, the payment discount will be via payroll.

You can resort to a bank guarantee

If you do not have or your Infonavit subaccount is not active, you can ask your bank to be your guarantee. The financial institution will run a study to confirm your ability to pay.

Leonardo González, Real Estate analyst at Propiedades.com, indicates that this option is convenient, since a bank offers guarantees for payment differences. This allows you to have a proper rental agreement.

Image: Depositphotos.com

“Many times this is not optional, but is a mandatory requirement to proceed to contract the property. The guarantees also act as a deposit, in case the monthly payments are not made during a pre-established period ”, he points out.

Lease policy or bond

This option is requested with a surety company to cover the rental costs, in case the tenant cannot. With this instrument, the lessor protects his assets.

To find out which company is best for you, it is advisable to check whether or not it is authorized by the National Insurance and Bonding Commission. To consolidate this contract, you must cover the cost of the deposit, which will depend on the value of the monthly rent and will correspond to a certain percentage. Like other expenses:

Base premium Property investigation Rights payment Credit bureau investigation

Currently, it is not impossible to rent a property if you do not have an endorsement between your family and acquaintances. Consider these options and you can find a home that suits your needs.