Brazil rental market shifts toward paid guarantees and digital risk management

The Brazilian rental market is undergoing a structural shift in risk management as paid guarantees, such as rental insurance and onerous guarantees, see significant growth. According to data from the management platform Superlógica, these paid models now account for 37% of rental contracts in the country, a substantial increase from just 4% in 2017.

This rise in paid guarantees coincides with a decline in the use of traditional guarantors, which dropped from 60% to 25% between 2017 and 2026. Currently, over 90% of rental contracts include some form of guarantee.

Industry experts, including Avalyst CEO Rogério Tavares, attribute this transformation to the integration of technology and data analysis. Digital guarantee providers allow real estate agencies to qualify candidates in minutes, offering a faster and more efficient alternative to the traditional guarantor process. This professionalization of risk management comes at a time when Brazil faces high levels of consumer insolvency, with Serasa reporting 83.9 million indebted consumers in July.