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Alternatives to Security Deposit: Guarantee Scheme and Bank Guarantees

Replace the security deposit with a guarantee scheme or bank guarantee: costs, benefits, and legal status.

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Guarantee Scheme

Since 2015, the Guarantee Fund offers affordable guarantees instead of a cash deposit (max. €650 one-time fee). Fully covered, no interest for the landlord.

Bank Guarantee

The tenant provides a bank guarantee (1-3 months' rent). Costs: 1-2% per year. The landlord claims in case of default via the bank.

Advantages and Disadvantages

OptionAdvantagesDisadvantages
Security DepositSimpleTied-up capital
Guarantee SchemeLow feeAdministrative burden
Bank GuaranteeNo cash requiredCosts

Legal Equivalence

Article 7:249 of the Dutch Civil Code recognizes alternatives as equivalent. The choice lies with the tenant.