Tenants usually pay refundable deposit, if they move into a new rental flat. Thereafter, this deposit is used if the tenant is not able to pay for rent or damages the apartment. If none of these situations occur during the rental, the landlord returns this refundable deposit to the tenant. This is a typical situation.
However, this refundable deposit was replaced by Flatio with the so-called Damage Coverage Guarantee, which is provided up to € 10.000 for each flat rented on Flatio. For landlords, it means much more coverage of property in case of damage.
Damage Coverage Guarantee on Flatio
Damage Coverage Guarantee has simplified the whole process of renting on Flatio. In addition, people are looking for a flat to let for only a few months here, and in this case this refundable deposit means an unpleasant extra pay. The Damage Coverage Guarantee also provides a much higher guarantee than typical refundable deposit from tenants, which should not have to cover the whole amount of the damage.
What exactly Damage Coverage Guarantee covers?
Damage Coverage Guarantee covers damages caused in the apartment and its surroundings – in the basement, garage, etc. The damages caused by using of this apartment, such as the heating of neighbors, are also covered by this special deposit. Flatio also resolves the situation with the tenant and eventually the insurance company.
Duties of the landlord
The landlord has to sign a handover protocol with new tenant, which confirm the state of the apartment. In addition, it is necessary to report the damage by e-mail or by phone until one day after handover residential premises. Landlord also have to provide proof of damage and the amount of the damage.
What Damage Coverage Guarantee does not cover
- Works of art, valuables or cash
- Normal apartment wear and tear
- Energy arrears (covered in another way)
- Damages that can be covered by insurance