Bank Guarantees are a very common feature of both retail and commercial leases. This popular feature allows landlords with current security in the advent the tenant defaults under the lease. It allows you as the commercial landlord to use the security deposit or bank guarantee to pay rental arrears or make pay for damages. For you as a landlord, this is the preferred option as they have lower maintenance option for security compared to other options such as cash bonds.
Ultimately, bank guarantees give you piece of mind against the risks of being a commercial landlord.
In some cases, often within a lease, may include a requirement for a tenant to provide a bank guarantee in the amount of three months’ rent plus the respective GST.
It is important to make sure to double check whether the bank guarantees have an expiry date for the lease. Some bank guarantees expire months before the lease, although, other bank guarantees will expire in line with the respective lease.
Our Mortgage Domayne brokers will talk you through your best options for bank guarantees. When talking with our specialised team members, it is important to mention these things to us:
A description of the premises
General insurance details from your insurers/creditors
The amount of rent plus GST payable
Any rent reviews
Respective desired expiry date
Any legal representation, so we can help streamline the process
Any audits of your lease
Given that there are a few things to think about when looking at a bank guaranteed loan, it is important that you get the competitive edge. We provide this to you as we make it easy to apply for this type of loan. Let us help you by removing the uncertainty and hassle, by giving you peace of mind. Call us to get that peace of mind by talking with us about how you could get a great bank guaranteed loan.