I am interested to hear from investors with experience in rental guarantees provided by a vendor. Rental guarantees. How do they work? What backs up the guarantee? How is the rent actually guaranteed? Does the vendor place a sum on money in the trust account of a solicitor/agent? Does the vendor provide a bank guarantee? Does the vendor offer an alternative property as security with the PPSR (Personal property Securities Register). Or is it just a personal guarantee provided by the vendor? How do you enforce the guarantee – get $$ if there is a shortfall in rent? Real life stories please.
Andrew Pitt
Enhancing Commercial Property to Empower Business
yes, negotiated a commercial property with a rent guarantee, took 3 weeks of back and forth, finally agreed on a PPSR arrangement. Didn’t have to enforce it though, so… who knows
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