Estimate the real cost of a bank guarantee: commissions plus the opportunity cost of blocked cash.
A bank guarantee is an additional safeguard the bank offers the landlord: if the tenant stops paying, the bank covers up to the guaranteed amount. In exchange, the bank charges commissions and usually requires that amount to be locked in an account or deposit, on top of the legally required deposit (fianza).
Beyond the commissions, many banks require the guaranteed amount to stay locked in an account or deposit, unusable for as long as the guarantee lasts. That money stops earning a return elsewhere — an opportunity cost that's rarely mentioned, but is part of the guarantee's real cost.
A bank guarantee locks up cash and charges commissions, but doesn't cover legal defense costs or the eviction process. Rental default insurance is a pure expense (no cash locked up) and usually includes legal cover, but requires a tenant solvency study and won't accept every tenant profile.
Compare with the default insurance calculatorFor a 6-month guarantee on a €1,100/month rent (€6,600 guaranteed), with typical market commissions the first-year cost usually runs around €400-500, including the opening commission, risk commission, notary, and the opportunity cost of the blocked cash.
This calculator provides an indicative estimate based on market commissions and does not constitute tax, legal, or financial advice, nor a bank guarantee offer. Actual commissions depend on the bank and the agreed terms.