Guarantors: Why you probably need a rental guarantor service this season.
A guarantor is simply someone who will cosign your rental lease and in the event you can’t pay the landlord can legally go after your guarantor to collect payment. With rentals across the country an all time high in pricing and low in vacancy, renters will need all the help they can get.
A significant segment of apartment renters in the New York, Boston, Chicago, DC and other major residential rental markets in the country do not meet the financial and/or credit criteria required by landlords. This group may include creditworthy college and professional school graduates entering the workforce; Non-U.S. residents executives relocating from abroad; self-employed persons; U.S. executives relocating; persons no longer in the workforce; and other persons who cannot demonstrate an annual income or credit history sufficient to meet the financial eligibility standards that are typically required.
In many instances, individuals are unable to rent apartments they would like without a co-signer/guarantor, additional security or prepaid rent.
When a guarantor or co-signer is required, it is often difficult for a renter to find a third party that is acceptable to the landlord. For example, the prospective co-signer or guarantor may live out of state, or may not have the financial resources or credit to meet the landlord’s requirements.
The Insurent® Lease Guaranty Program was created to serve renters, landlords, condo/co-op owners, and brokers and relocation specialists by offering the first institutional guarantor of residential leases. The Insurent® Lease Guaranty Program is underwritten and issued by Argonaut Insurance Company, a property and casualty insurance company rated A- (Excellent) by A.M. Best.
Instead of looking for a guarantor or co-signer, or having to pay a significantly
larger security deposit or prepaid rent, a renter may utilize the Insurent® Lease Guaranty to satisfy the landlord’s financial and credit requirements