Document background
The Rent Guarantee Agreement is a crucial document in the Philippine property rental market, designed to provide security to landlords while facilitating rental arrangements for tenants. It becomes necessary when a landlord requires additional assurance beyond the standard security deposit, particularly in cases involving new tenants, students, or businesses without extensive credit history. The agreement, governed by Philippine law, specifically the Civil Code and Rent Control Act, establishes a legally binding commitment from a guarantor to fulfill the tenant's obligations in case of default. This document typically includes detailed provisions about the scope of the guarantee, payment terms, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon. It's particularly relevant in both residential and commercial contexts, especially in high-value rental arrangements or when dealing with corporate tenants.
