§ 3-6. Guarantee as security for the landlord
Instead of a deposit (depositum), or in addition to one, the landlord (utleier) can require you to provide a guarantee (garanti), for example from a bank. But the deposit and guarantee together can never exceed six months' rent (husleie).
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
The text of the law (unofficial translation)
It may be agreed that the tenant (leier) shall provide a guarantee as security for claims for unpaid rent, damage to the rented premises (husrom), costs of eviction (fraviking) and other claims arising from the tenancy agreement (leieavtale). The guarantee amount, together with a deposit under § 3-5, cannot exceed the sum of six months' rent. It cannot be agreed, with effect for the tenant's liability to reimburse the guarantor, that the guarantor shall have the right to pay out the guarantee regardless of the tenant's objections to the landlord's claim.
What does this mean?
A guarantee works in a similar way to a deposit: it is security for the landlord. The difference is that it is not your own money that is locked away. Instead, a third party (for example your bank or the municipality) promises to pay the landlord if you are in breach of the tenancy agreement (mislighold).
The most common situation is that the municipality or NAV (the Norwegian Labour and Welfare Administration) provides a guarantee for you if you are in a difficult situation and cannot pay a cash deposit.
The limit is six months in total. If you have already paid a deposit of three months' rent, the landlord can require a guarantee for at most three more months. You cannot be forced to provide security for more than six months' rent, whatever form the security takes.
An important protection: The landlord cannot agree with the guarantor that the guarantee can be paid out regardless of your objections. This means that if you have good reasons to dispute a claim, the guarantor cannot ignore them.
Example
Eva does not have money for a deposit, but the municipality provides a guarantee covering two months as security. The landlord accepts this. He cannot also require a cash deposit of more than four months' rent, because the total cannot exceed six months.
Common mistakes
- Thinking that the guarantee and the deposit are completely separate. They are added together. The total cannot exceed six months.
- Thinking that the guarantor can pay out without hearing from you. He cannot. You have the right to raise objections.
What should you do?
Ask the municipality or NAV whether they can provide a guarantee for you if you do not have cash for a deposit. Many people do not know about this scheme, and it can make it easier to get into the housing market.