Creditor Tenancy - What does it mean?

The word creditor means creditor. A creditor is a natural or legal person who has lent money to someone or sold goods or services but has not yet been paid. In the case of tenancies and rental agreements, the landlord is the creditor because the tenant owes the landlord money during the rental period. Many people often confuse the word creditor with guarantor, which has a completely different meaning.

What are creditors and debtors?

When you sign a contract where you owe someone money or are obliged to pay for a service, you are a debtor. The person or company you owe money to is a creditor. In most cases, a creditor is a bank, a landlord or some other company that you owe money to. The company is considered a legal entity, and in Sweden it is almost always a legal entity that is a creditor. If you borrow money or rent your apartment from a private individual, the creditor is instead a natural person. The person who is liable to pay is called the debtor.

When is a creditor needed for rental property?

When you sign a rental agreement, your landlord automatically becomes a creditor. So there is always a creditor when you sign a rental agreement with a landlord. Even if you sublet, there is a creditor who is the person or company you pay your rent to. Many people often confuse the word creditor with guarantor, which is something completely different.

Who can be a creditor?

When someone signs a contract where a debtor owes them money, they automatically become a creditor. A creditor can be either a private individual or a legal entity such as a company or an organization. It is most common for companies such as banks or landlords to be creditors in Sweden.

What is the difference between a guarantor and a creditor?

When talking about a rented apartment or lease, the landlord is the creditor. Sometimes the expression "to act as a guarantor for someone" is mentioned. In these situations, we are not talking about a creditor but a guarantor. A guarantor is a person who signs an agreement in which they accept the same payment obligations as the debtor (tenant). A guarantor can be a friend, a parent or someone else who takes on the responsibility of paying your rent if you fail to pay your rent on time. So there is always a creditor when you rent an apartment, while a guarantor is only used when the tenant needs someone to act as a guarantor for him or her.

Who is the creditor when I sign a lease with Slättö?

When you are a tenant with us, Slättö is the creditor for your apartment. Since you pay your rent to Slättö, you are a debtor and Slättö is a creditor.

Can one creditor act as a guarantor for several people?

A creditor is a legal or natural person who lends money or signs a contract with a debtor. Someone who guarantees someone is a guarantor and not a creditor. It is very common for these two terms to be confused. A guarantor can guarantee several people if his or her financial situation allows it.

Living in rented accommodation with Slättö as creditor

If you are looking for a rental apartment in an attractive area, Slättö can help you find it. We build and manage rental apartments in some of the country's most attractive areas. Our residential buildings are also built with a focus on high living standards and convenience. When planning new apartments, we also place great emphasis on environmental friendliness.

When you rent an apartment from Slättö, Slättö is the creditor. You as a tenant then become our debtor. As a debtor, you are obliged to pay your rent as long as you live in your rental apartment. If you cannot afford to pay your rent yourself, you can use a guarantor, which means something completely different from a creditor.

With a guarantor, you can be granted an apartment that you are deemed unable to afford yourself. A guarantor can be a parent or a partner who agrees to be liable for payment if you cannot afford to pay your rent. As a guarantor in a rental agreement, you have the same payment obligations as the tenant if, for example, there is damage to the apartment. If you have questions about being a guarantor or what it means to be a debtor, you can always contact us here.