Almost every landlord requires the tenant to pay a rent deposit in advance. A landlord can decide freely, even if this is not required by law. Many landlords have fallen victim to rental nomads in the past. Therefore, a deposit ensures that a landlord does not stay on the rent claims. The rental deposit can be negotiated freely between the parties and may not exceed three months’ rent.
The first installment is due at the beginning of the lease and the deposit can generally be paid in three monthly installments. The money is then paid into a deposit account and if there are no claims against a tenant after the tenancy, the deposit is paid to the tenant with interest. Due to the renovation, the furnishing of the apartment, a possible commission and the deposit, the costs for moving are very high and a loan for the rental deposit is often required.
Take out a loan for the rental deposit
The loan for rent deposit can quickly amount to between 1,000 and 2,000 USD. In proportion, this loan amount is relatively small and there are various options. As an overdraft facility, the loan for a rental deposit can be applied for relatively quickly, but interest over 10 percent is often required. As an installment loan, the loan for rent deposit is cheaper and a term of one year is selected, then there are good conditions from Best Bank. With a loan amount of 1,600 USD and an effective interest rate of 2.89 percent, the monthly rate can be less than 140.00 USD.
However, there are various requirements for a loan for a rental deposit. A borrower must have been employed by the same employer for at least six months without a trial period. In this context, it must also be a permanent employment relationship. In addition, pay slips are requested and a loan for rent deposit is not granted for negative Credit Bureau entries.
General information about the loan for the deposit
A loan for rent deposit is suitable if the financial means are insufficient for an upcoming move. At the beginning of a move, every tenant should get an overview of the upcoming costs and also consider a rental deposit. Often the deposit from the previous tenancy has not yet been paid and the new one is already due. A loan is taken out for the rent deposit and if the old one has been paid out, then the loan can be repaid early. Often there are some reserves and taking out a small loan may be sufficient.
A credit for free use can be applied for and the deposit can be deposited without any problems. A loan is rejected if an applicant is unemployed, the income situation is insufficient or there is a negative Credit Bureau. In these cases, however, there are also possible solutions that should be checked. In the event of a negative Credit Bureau, there is a loan without Credit Bureau and this can be requested through a credit intermediary. The situation with unemployment benefit II is somewhat different. Often the move is also in the interest of the service provider and then the office can grant the rent deposit or a corresponding loan.