Keyhole Guarantee (landlord)

DISCLAIMER: Our terms and conditions have been automatically translated for convenience. The original terms and conditions in Danish is the authoritative version. In case of any discrepancies or inconsistencies between the translated version and the original Danish version, the Danish version shall prevail.

Terms and conditions for landlords using the Keyhole Guarantee.

The short version

With the Keyhole Guarantee solution, landlords can offer tenants the ability to move in without paying a deposit and prepaid rent in cash.

A Keyhole Guarantee requires the tenant to pass Keyhole's credit assessment and complete registration with Keyhole.

After the tenant's registration with Keyhole, the landlord will receive an irrevocable demand guarantee matching the amount of the deposit and prepaid rent.

When the tenant vacates, a move-out report is submitted to Keyhole, and the settlement will be paid out within 10 business days, regardless of objections. If there is an objection, the landlord must resolve it so that Keyhole has a valid claim against the tenant.

1. Keyhole Guarantee

1.1. The guarantee can be used for private residential leases in Denmark.

1.2. The guarantee is mediated by Keyhole and issued by Keyhole's financial partner on the tenant's behalf to the landlord.

Financial partner:

Nordic Guarantee, a branch of Nordic Guarantee Försäkringsaktiebolag, Sweden

Havnegade 39

1058 København K

CVR: 30 58 30 27

The financial partner is supervised by the Swedish Financial Supervisory Authority (FI) and has approval (concession) to operate insurance business in insurance classes 15 and 9. For complete information, refer to the Swedish Companies Registration Office at FI (Företagsregistret hos FI).

1.3. The guarantee is subdivided into two guarantees:

a. Deposit guarantee

b. Prepaid rent guarantee

Together, these guarantees cover up to 6 months' rent.

1.4. The deposit guarantee provides the landlord with a guarantee equal to up to 3 months' rent according to the Danish Rent Act (Lejeloven) §59.

The guarantee serves as security for the tenant's potential failure to pay for move-out costs and rent as per the provisions of the Rent Act.

1.5. The prepaid rent guarantee provides the landlord with a guarantee equal to up to 3 months' rent, according to the Danish Rent Act §59.

The guarantee serves as security for the tenant’s potential failure to pay rent during the last up to three months of the lease period according to the Rent Act.

1.6. With regard to prepaid rent, the tenant will continue to pay rent to the landlord for the final three months, even when the lease ends.

1.7. Appendix A to these terms includes the guarantee for the deposit and prepaid rent, along with associated terms.

2. Issuance of Guarantee

2.1. The issuance of a guarantee requires:

a. The Landlord invites the Tenant on the condition of the Tenant's informed consent regarding Keyhole's collection of information about the Tenant's name, address, email, phone number, and social security number.

b. The Tenant has passed Keyhole's creditworthiness assessment, which is carried out upon creation and includes a credit check as well as confirmation of Danish citizenship or permanent residency permit.

c. The Tenant has accepted Keyhole's terms and conditions and approved the reservation of the setup fee as well as set up monthly premium payments using one of Keyhole's available payment methods.

d. The Landlord has submitted a signed lease agreement containing the §11 terms listed in Appendix B.

2.2. Additional terms if the Keyhole Guarantee is offered to existing tenants who have already paid a cash deposit and possibly prepaid rent:

a. The lease must have been signed no more than 12 months before the issuance of the guarantee.

b. The landlord must send confirmation to Keyhole of the repayment of any cash deposit and possibly prepaid rent to the tenant.

3. Using the Guarantee

3.1. To make a claim on the guarantee, the following must be submitted:

a. Signed move-out report.

b. Move-out statement.

3.2. To cover any outstanding utility bills, the guarantee remains in place. Any claims regarding utility bills must be submitted to Keyhole promptly and no later than 18 months after the move-out date.

3.3. Claims will be paid out within 10 business days after submission.

4. Objections to Claims

4.1. The guarantor will pay claims to the landlord upon demand, regardless of whether the tenant disputes the claim.

4.2. In case of an objection from the tenant to the claim submitted, the landlord is obligated to resolve all disputes with the tenant, even if the landlord has received payment through the guarantee. A signed resolution of the objection must be submitted to Keyhole as soon as possible.

4.3. Keyhole is considered an independent third party in the relationship between the landlord and tenant and is bound by the decision made between the landlord and tenant.

4.4. If the tenant wins a dispute with the landlord, any overpaid amount will be refunded.

5. Termination of Guarantee

5.1. A guarantee terminates completely when:

a. The agreement between the tenant and landlord has ended, and the landlord can no longer withhold the tenant's deposit according to the Rent Act.

b. The tenant has paid a cash deposit/prepaid rent to the landlord.

5.2. In the event of the Tenant's breach of their obligations towards Keyhole and/or the Guarantor, including non-payment of premiums and fees, the Tenant's breach of their obligations towards Keyhole will be treated as a separate matter, without any impact on the Landlord.

5.3. Keyhole may demand payment of the guarantee amount from the Tenant for Keyhole's payment of the cash deposit/prepaid rent to the Landlord. Thus, in connection with the Tenant's breach, Keyhole will seek to terminate the guarantee as quickly as possible through cash payment of the deposit/prepaid rent to the Landlord.

6. Other Provisions

6.1. If one or more properties of the property company are sold, all guarantees issued by Keyhole for these properties will be transferred to the new legal owner.

6.2. The parties should seek to resolve any conflicts arising from their cooperation through negotiation. However, either party may at any time take legal action against the other, whether or not this is done concurrently with or after negotiation. The agreement is governed by Danish law.

7. Appendices

7.1. Appendix A: Full Guarantee for Deposit and Prepaid Rent.

7.2.Appendix B: Keyhole Terms for §11 of the Lease Agreement.

APPENDIX A:

Guarantee Regarding Deposit and Prepaid Rent

Guarantee Number:

Date of Issue:

At the request of [Tenant] (hereinafter referred to as “Tenant”), Nordic Guarantee hereby stands as guarantor to [Landlord] (hereinafter referred to as “Landlord”) for the payment of:

Deposit:

Prepaid rent: XX.XXX

XX.XXX DKK.

DKK.

As security for the fulfillment of:

a. Tenant’s obligations in connection with the vacating of the leased property at [Address] in accordance with the Danish Rent Act § 34, for DKK XX.XXX, corresponding to the deposit specified in the lease agreement between Tenant and Landlord (Nordic Guarantee Guarantee Number: XXXXXXX), and

b. Tenant’s obligations in connection with the payment of prepaid rent regarding the leased property at [Address], for DKK XX.XXX, corresponding to [X] months' rent, as specified in the lease agreement between Tenant and Landlord regarding prepaid rent (Nordic Guarantee Guarantee Number: XXXXXXX).

The guarantee is an irrevocable on-demand guarantee.

As for the part of the guarantee relating to Tenant’s obligations in connection with vacating the property in accordance with the Danish Rent Act § 34, payment is conditional on the Landlord documenting that a vacating report has been prepared in accordance with the Danish Rent Act § 98, a vacating statement with accompanying documentation, and that Tenant has failed to pay the required amount despite demand. If the Landlord wishes to claim the guarantee, this must be notified to Nordic Guarantee and Keyhole, which must be done via Keyhole's app or website. Nordic Guarantee will pay the amount within 10 business days thereafter.

As for the part of the guarantee relating to Tenant’s obligations in connection with the payment of prepaid rent, payment is conditional on the due date for the current month’s rent being exceeded in accordance with the Danish Rent Act and the lease agreement. If the Landlord wishes to claim the guarantee, this must be notified to Nordic Guarantee, Tenant, and Keyhole, which must be done via Keyhole's app or website. Nordic Guarantee will pay the amount within 10 business days thereafter.

The following terms and conditions apply to the guarantee.

Terms and Conditions of the Guarantee

1. Issuance of Guarantee
The guarantee is issued by Nordic Guarantee, which is Keyhole’s financial partner. The rights granted to Keyhole under these terms can also be invoked by Nordic Guarantee.

2. Change of Guarantee Amount
If the Landlord is entitled to charge additional deposit in accordance with the Danish Rent Act and the lease agreement, the Landlord may request that the guarantee amount be changed to reflect the increased deposit.

Similarly, Keyhole/Nordic Guarantee may reduce the guarantee amount if the Tenant is entitled to request a reduction of the deposit in accordance with the Danish Rent Act and/or the lease agreement.

In such cases, Nordic Guarantee will issue a new guarantee.

3. Termination
The guarantee expires in full and completely when either:

- The contractual relationship between Tenant and Landlord has ended and been settled, and the Landlord can no longer retain Tenant’s deposit in accordance with the Danish Rent Act.

- Tenant pays the cash deposit/prepaid rent to the Landlord.

4. Separation of amounts
The guarantee consists of two parts, a. and b., as indicated above. For the part of the guarantee related to point a., payment can only take place when it concerns Tenant’s obligations in connection with vacating the leased property in accordance with the Danish Rent Act § 59.

Similarly, for the part of the guarantee related to point b., payment can only take place when it concerns Tenant’s obligations in connection with the payment of prepaid rent.

In connection with the termination of the lease, Tenant continues to pay rent to the Landlord for the last three (3) months.

5. Disputes/Law Applicable
Any disputes between the Landlord and Keyhole/Nordic Guarantee shall be settled under Danish law by the competent Danish courts.

APPENDIX B:
Keyhole Terms for §11 in the Lease Agreement

The terms regarding Keyhole in §11 can either be inserted directly into the lease agreement or attached as an appendix.

If the text is attached as an appendix to §11, it must be appended to the lease agreement at the time of signing, so there is no doubt that the tenant has received it upon signing. It is recommended that the appendix also be signed separately.

The following text can be used in §11 to integrate the Keyhole §11 terms as an appendix:

Text Integrating Keyhole §11 Terms as an Appendix

Section 4 Deposit and Prepaid Rent

The tenant has chosen to use Keyhole's guarantee concept regarding [deposit / prepaid rent / deposit and prepaid rent], so that the tenant will not pay a cash [deposit / prepaid rent / deposit and prepaid rent]. Therefore, reference is made to the §11 appendix titled "Deviation Due to Keyhole’s Guarantee Concept Regarding [deposit / prepaid rent / deposit and prepaid rent]," which forms an integrated part of §11 of the lease agreement, and the terms therein are considered highlighted for the tenant, as they may impose greater obligations or fewer rights on the tenant than those indicated in the law and the lease agreement.

[deposit / prepaid rent / deposit and prepaid rent] = Three different variants should be created, depending on what the tenant has accepted, either 1) deposit or 2) prepaid rent or 3) deposit and prepaid rent.

Keyhole §11 Terms

Note: If Keyhole is only used for the deposit, the section regarding prepaid rent can be omitted.

Section 4 Deposit.

It is agreed in §4 of the lease agreement that the tenant will pay a cash deposit equivalent to three months’ rent to the landlord as security for the tenant’s obligations under the lease. The tenant has chosen to use Keyhole's guarantee concept, and the landlord accepts that the cash deposit is replaced by a guarantee provided by Keyhole in accordance with Keyhole's guarantee concept.

The Tenant is obligated to ensure that the guarantee is always valid and in force, including by paying the fees and premiums charged by Keyhole, as non-payment to Keyhole is considered a material breach of the guarantee that justifies termination. Should Keyhole initiate a procedure to terminate the guarantee by demanding payment of the guarantee amount from the Tenant for Keyhole's payment of the cash deposit/prepaid rent to the Landlord, Keyhole will thus, in connection with the Tenant's breach, seek to terminate the guarantee as quickly as possible through cash payment of the deposit/prepaid rent to the Landlord.

Section 4 Prepaid Rent

It is agreed in §4 of the lease agreement that the tenant will pay three months' prepaid rent to the landlord, which can be offset against the tenant’s payment for the last three months’ rent. The tenant has chosen to use Keyhole's guarantee concept, and the landlord accepts that the prepaid rent is replaced by a guarantee provided by Keyhole in accordance with Keyhole's guarantee concept.

Since the guarantee for prepaid rent is solely for securing the tenant's payment of rent for the last three months, the tenant must continue to pay rent to the landlord in the last three months, and Keyhole's guarantee to the landlord will be reduced as the tenant pays rent. The tenant is therefore required to pay rent for the entire lease period, even if a guarantee for the last three months' rent has been provided.

Section Vacating
Upon termination of the lease, a vacating inspection will be conducted, and the landlord will prepare a vacating report in accordance with the Danish Rent Act §98. The vacating report will specify any deficiencies in the leased property that must be repaired at the tenant's expense.

Soon after the vacating report is prepared, the repair work will be initiated, and the landlord will send a vacating statement with the vacating claim to the tenant via Keyhole’s concept, along with documentation for the claim.

The vacating claim is handled and communicated to the tenant via Keyhole’s concept, and if the tenant does not accept the repair costs charged by the landlord, the tenant is hereby encouraged to immediately, and within 2 weeks of receiving the notification, raise an objection via Keyhole’s concept. Otherwise, the landlord will consider the vacating claim as accepted by the tenant.

If the tenant raises an objection or does not pay the vacating claim to the landlord, the landlord will bring the claim before the Rent Tribunal and, if necessary, the courts to establish the vacating claim, and the landlord is entitled to draw on the guarantee provided by Keyhole for the tenant’s obligations. Keyhole is then entitled to pursue the claim against the tenant in accordance with the agreement between Keyhole and the tenant. However, Keyhole cannot pursue a claim against the tenant greater than what the landlord is granted by the Rent Tribunal or the courts.

If the repair costs exceed the guarantee provided by Keyhole, the landlord can make further claims directly against the tenant.