In most cases, the landlords require a deposit for the apartment from their new tenants. This should compensate for any damage caused by the tenant. As a rule, two to three months’ rent must be paid for the deposit. If the rent is high, it can be a costly affair. But what can the tenant do if he cannot raise the money for the deposit?
Installment payments are allowed
Basically, the landlords have to agree to an installment payment of two to three months. However, if the rent is USD 1,000, for example, paying in installments is not enough. Now the tenant can only take out a loan for the deposit. If there are no negative private credit checker entries and the salary is high, there will be no difficulties with a loan approval.
Good lender loans rental deposit – the alternative to taking out loan for deposit
Alternatively, the tenant can also register for the Good lender loans rental deposit. This takes the form of a guarantee for the new apartment. To do this, the applicant must provide information about himself and his professional situation, among other things. In addition, detailed information about the apartment and the deposit are required.
Take out a loan
Another option is to take out a loan for the deposit at a bank. This does not necessarily have to be the house bank, an online bank can also be an option. Everyone has to decide for themselves which option is ultimately the cheaper one. The advantage with online banks is the low interest rates. These banks can afford it because they rarely have a branch network. This saves considerable costs.
Social welfare recipients do not need to take out a loan. In these cases, the social services take over the payment of the deposit, even if it has to be paid back. But that should be the lesser evil for the group of people, because they wouldn’t get a loan from a bank anyway.