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Private guarantees: how much they cost, in which neighborhoods they are most used, and why they are gaining ground in rentals - Ambito Financiero
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www.ambito.com
October 16, 2025
By Jose Luis Cieri
More and more tenants are opting for private guarantees when signing a contract. In Buenos Aires, their use is growing in neighborhoods with high rents and high utility bills.
Signing a contract with a private guarantee allows you to speed up approval times and ensure compliance with the lease. Pexels
The growth of private guarantees in rental contracts is one of the most visible transformations in the Buenos Aires real estate market. These tools, which allow access to housing without relying on guarantors with real estate, are consolidating as an alternative to traditional requirements.
According to the new GarantíaYa Index, which bimonthly surveys closing rental prices (not published prices) and expenses in the main neighborhoods of Buenos Aires , the average rent in September was $597,000, with marked differences depending on the area. Núñez leads the ranking with an average rent of $701,000, followed by Palermo with $663,000. At the other end is Balvanera, with $506,000.
Average utility bills in the city are around $116,000, according to the company that conducted the survey. Recoleta leads the way with $139,000, while Lugano and Flores have the lowest amounts, at $43,000 and $60,000, respectively. According to the report, the average number of residents per property is 1.58, with Núñez at the lowest (1.35) and Lugano at the highest (1.7).
“In neighborhoods with higher rents, such as Núñez or Palermo, we see a greater use of private guarantees. These are areas where contracts are signed for high amounts, and homeowners seek immediate support. On the other hand, in neighborhoods with lower average rents, such as Balvanera or Flores, the profile of young tenants or single people who choose affordable guarantees to gain access predominates,” explained Gastón Gurevich , partner at GarantíaYa.
At a general level, the report also analyzed property typology. The average in Buenos Aires City is 1.96 rooms per unit. Gurevich explained: "At the extremes, Balvanera and Palermo have the highest proportion of one-bedroom apartments (40% and 30%), while Recoleta, Belgrano, and Flores have the highest concentration of three-bedroom units, at 43%."
The index, compiled using data from effectively signed contracts , will be updated every two months and will incorporate new metrics to track market developments.
Estimated cost of private guarantees:
• The average value is approximately equal to one rent plus expenses multiplied by 1.5 .
• In an average contract—for example, rent of $800,000 and expenses of $200,000—the guarantee is approximately $1,500,000 .
• The amount may vary depending on the type of property, the area, and the tenant's credit profile.
Braña noted that there are three main types: surety bonds from private companies; surety bonds offered by companies under the control of the National Insurance Superintendency; and banking products, which some public and private banks offer to clients or employees. “The big difference is the speed. Surety bonds or surety bonds are processed in a few days, while a property guarantee can take weeks. Furthermore, many people don't have a guarantor with a property title or prefer not to involve third parties,” he indicated.
Private guarantees are gaining ground among tenants and landlords as a flexible alternative to traditional guarantors.
Private guarantees are gaining ground among tenants and landlords as a flexible alternative to traditional guarantors.
Pexels
The specialist clarified that the current cost of these guarantees is not insignificant. "They typically represent the equivalent of two months' rent or about 6% of the total contract, including expenses. Even so, for many tenants, they are the only option. They don't have a landlord guarantor or prefer to pay for a quick and formal solution," Braña noted.
Among the advantages, Braña highlighted the speed of the response. He stated: “Private companies with a track record respond immediately to a claim, without delays or fine print. On the other hand, a homeowner guarantor may be in a worse financial situation than a tenant and unable to cover the debt, which ends in litigation. Private guarantees simplify the entire process,” he stated.
Regarding potential risks, he warned that "not all companies in the sector are reputable. Some fail to deliver on their promises and fail to make payments. However, insurers operating under the National Insurance Superintendency offer greater support."
The lawyer pointed out that in both cases, it's advisable to review the tenant's obligations. He noted: "Some policies don't cover debts for expenses or services. It's also key to verify the company's solvency. In the case of insurance, they must be registered with the National Insurance Superintendency and not be in the process of liquidation. If it's a company that offers surety bonds, it must have the statutory authority to guarantee third-party obligations. This contributes to the health of the lease agreement."
Robiglio emphasized that the pre-guarantee process also represents an advantage. “These companies typically perform a credit analysis of the tenant, which increases the likelihood of compliance. If there is a delay, the owner knows the company will respond within the limits of the policy or bond. This makes the contract more agile and predictable in terms of collection.”
Industry sources warn that, as with any contract, there is always a risk of noncompliance. When demanding payment, the company may try to hide behind the terms of the policy to exclude certain items. In this case, the parties may end up in legal proceedings.
"Therefore, we recommend reviewing each clause and choosing companies with proven solvency," said Robiglio.
The rise in private guarantees is also linked to the level of expenses and the cumulative rise in rents in Buenos Aires. In neighborhoods like Recoleta and Belgrano, where monthly costs exceed 750,000 pesos between rent and expenses, this type of support has become almost indispensable.
Gurevich explained that the trend will continue. “The market is becoming more professional. Owners are looking for security, and tenants are looking for affordability. Private guarantees have managed to balance these two interests,” he concluded.
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Source:
Garantías privadas: cuánto cuestan, en qué barrios se usan más y por qué ganan terreno en los alquileres
Cada vez más inquilinos optan por garantías privadas para firmar un contrato. En CABA crece su uso en barrios con alquileres altos y expensas elevadas.
www.ambito.com
October 16, 2025
By Jose Luis Cieri
More and more tenants are opting for private guarantees when signing a contract. In Buenos Aires, their use is growing in neighborhoods with high rents and high utility bills.
Signing a contract with a private guarantee allows you to speed up approval times and ensure compliance with the lease. Pexels
The growth of private guarantees in rental contracts is one of the most visible transformations in the Buenos Aires real estate market. These tools, which allow access to housing without relying on guarantors with real estate, are consolidating as an alternative to traditional requirements.
According to the new GarantíaYa Index, which bimonthly surveys closing rental prices (not published prices) and expenses in the main neighborhoods of Buenos Aires , the average rent in September was $597,000, with marked differences depending on the area. Núñez leads the ranking with an average rent of $701,000, followed by Palermo with $663,000. At the other end is Balvanera, with $506,000.
Average utility bills in the city are around $116,000, according to the company that conducted the survey. Recoleta leads the way with $139,000, while Lugano and Flores have the lowest amounts, at $43,000 and $60,000, respectively. According to the report, the average number of residents per property is 1.58, with Núñez at the lowest (1.35) and Lugano at the highest (1.7).
“In neighborhoods with higher rents, such as Núñez or Palermo, we see a greater use of private guarantees. These are areas where contracts are signed for high amounts, and homeowners seek immediate support. On the other hand, in neighborhoods with lower average rents, such as Balvanera or Flores, the profile of young tenants or single people who choose affordable guarantees to gain access predominates,” explained Gastón Gurevich , partner at GarantíaYa.
At a general level, the report also analyzed property typology. The average in Buenos Aires City is 1.96 rooms per unit. Gurevich explained: "At the extremes, Balvanera and Palermo have the highest proportion of one-bedroom apartments (40% and 30%), while Recoleta, Belgrano, and Flores have the highest concentration of three-bedroom units, at 43%."
The index, compiled using data from effectively signed contracts , will be updated every two months and will incorporate new metrics to track market developments.
Estimated cost of private guarantees:
• The average value is approximately equal to one rent plus expenses multiplied by 1.5 .
• In an average contract—for example, rent of $800,000 and expenses of $200,000—the guarantee is approximately $1,500,000 .
• The amount may vary depending on the type of property, the area, and the tenant's credit profile.
They gained ground
Private guarantees—whether in the form of a surety bond or surety insurance —have been on the market for decades, although their widespread adoption is recent. Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, explained that “these guarantees are nothing new: companies like Monclair have been offering them since 1993, and Finaer for over 15 years. Today, they have become more agile and faster, which makes them attractive in today's times.”Braña noted that there are three main types: surety bonds from private companies; surety bonds offered by companies under the control of the National Insurance Superintendency; and banking products, which some public and private banks offer to clients or employees. “The big difference is the speed. Surety bonds or surety bonds are processed in a few days, while a property guarantee can take weeks. Furthermore, many people don't have a guarantor with a property title or prefer not to involve third parties,” he indicated.
Private guarantees are gaining ground among tenants and landlords as a flexible alternative to traditional guarantors.
Private guarantees are gaining ground among tenants and landlords as a flexible alternative to traditional guarantors.
Pexels
The specialist clarified that the current cost of these guarantees is not insignificant. "They typically represent the equivalent of two months' rent or about 6% of the total contract, including expenses. Even so, for many tenants, they are the only option. They don't have a landlord guarantor or prefer to pay for a quick and formal solution," Braña noted.
Advantages and risks
For landlords, the key issue is the reliability of the company providing the guarantee. "It's essential to know if the company is responsible for default, if it covers debts for rent, expenses, or utilities, and if its coverage extends beyond the contractual term. For the tenant, it's important to be clear about the grace periods for late payments, the terms of reimbursement to the company, and what happens if co-debtors are involved," he explained.Among the advantages, Braña highlighted the speed of the response. He stated: “Private companies with a track record respond immediately to a claim, without delays or fine print. On the other hand, a homeowner guarantor may be in a worse financial situation than a tenant and unable to cover the debt, which ends in litigation. Private guarantees simplify the entire process,” he stated.
Regarding potential risks, he warned that "not all companies in the sector are reputable. Some fail to deliver on their promises and fail to make payments. However, insurers operating under the National Insurance Superintendency offer greater support."
Legal voice
Franco Robiglio , partner at Robiglio Abogados, analyzed the legal aspects. “In principle , neither the proprietary nor the private guarantee is a real guarantee backed by a specific asset. However, private guarantees, through surety bonds or surety contracts, allow for faster collection because they cover unpaid rent and associated items,” he clarified.The lawyer pointed out that in both cases, it's advisable to review the tenant's obligations. He noted: "Some policies don't cover debts for expenses or services. It's also key to verify the company's solvency. In the case of insurance, they must be registered with the National Insurance Superintendency and not be in the process of liquidation. If it's a company that offers surety bonds, it must have the statutory authority to guarantee third-party obligations. This contributes to the health of the lease agreement."
Robiglio emphasized that the pre-guarantee process also represents an advantage. “These companies typically perform a credit analysis of the tenant, which increases the likelihood of compliance. If there is a delay, the owner knows the company will respond within the limits of the policy or bond. This makes the contract more agile and predictable in terms of collection.”
Industry sources warn that, as with any contract, there is always a risk of noncompliance. When demanding payment, the company may try to hide behind the terms of the policy to exclude certain items. In this case, the parties may end up in legal proceedings.
"Therefore, we recommend reviewing each clause and choosing companies with proven solvency," said Robiglio.
The rise in private guarantees is also linked to the level of expenses and the cumulative rise in rents in Buenos Aires. In neighborhoods like Recoleta and Belgrano, where monthly costs exceed 750,000 pesos between rent and expenses, this type of support has become almost indispensable.
Gurevich explained that the trend will continue. “The market is becoming more professional. Owners are looking for security, and tenants are looking for affordability. Private guarantees have managed to balance these two interests,” he concluded.
www.buysellba.com
