8 Best Lease Guarantor Companies In 2024

Achieving homeownership is a long, daunting journey for many people, but fortunately, renting is a viable and appealing alternative.

Renting provides tenants with a sense of community, security, flexibility, and freedom. For landlords, renting offers a passive income source. However, with increasing economic costs and inflation at an all-time high, most landlords have no option but to safeguard their financial interests by requiring a lease guarantee.

Lease guarantor companies strike a sweet spot for both parties; they allow tenants to access their dream apartments while assuring landlords they’ll be paid.

We shortlisted eight of the best lease guarantor companies in 2024 to ensure your rental experience is a breeze. We’ll also go into the specifics of what they do and how they do it and explore reasons beyond cosigning that make them a good idea:

• 1. TheGuarantors
• 2. Insurent
• 3. Leap
• 4. Steady Rent
• 5. Tenantcube
• 6. Rent Rescue
• 7. Nomad Lease
• 8. World Insurance
• What Is A Guarantor On A Lease?
• How Does A Lease Guarantor Work?
• Common Reasons For Lease Guarantors
• Best Lease Guarantor Companies: Final Thoughts

1. TheGuarantors

TheGuarantors is an award-winning FinTech company that provides rent guarantees to enable renters’ access to spaces they want while protecting the landlord.

The New York-based company was established in 2015 by Julien Bonneville. He came up with the idea after missing out on renting opportunities in several buildings when he moved to New York City.

Now, alongside Bob Schmidt and several others, TheGuarantors has helped renters with over $2 billion in rent guarantees and deposits. The company is further backed by some of the largest insurance carriers, like Hannover Insurance and partners with renowned residential real estate brands in the U.S. to cover over 3 million units.

They offer three primary lease guarantee insurance products: rent coverage, deposit coverage, and renter’s insurance.

Rent coverage is like insurance for the landlord during the renter’s lease. The renter buys it to access a space they may not otherwise have the opportunity to rent due to their credit history or income level. When the renter cannot pay rent, the policy kicks in and reimburses the landlord.

The Guarantor’s deposit coverage benefits both the renter and the landlord. Renters pay a small, non-refundable fee, usually 6-33% of one month’s rent, allowing them to rent deposit-free while the landlord remains protected against damages, missed rent, and other costs that the security deposit typically covers. Renter’s insurance protects the renter and their stuff in the apartment from damage and other possible liabilities such as theft. Ultimately, they offer great guarantor insurance plans with no hidden fees, but some feature a high price tag. Additionally, the fees are non-refundable.

Read Also: How To Calculate ROI On Rental Property

2. Insurent

Insurent, established in 2002 by Jeffrey Geller, was one of the first lease guarantor companies in the U.S. They currently partner with over 9,000 buildings in NYC and provide lease coverage for over 700,000 rental units across several U.S. states. Their lease guarantor program helps renters get approved quickly for rental apartments, condos, and co-ops. If you have U.S. credit, they guarantee 65%-85% of a month’s rent; for foreigners with no credit, their lease guarantee is 100%.

Insurent primarily caters to recent grads, international and U.S. students, self-employed individuals, retirees, and corporate leases. Their lease policies are underwritten and issued by Argonaut Insurance Company, an A-rated property and casualty insurance company licensed in 48 states, including New York and California.

To qualify for Insurent’s guarantor insurance policies, a renter’s annual income must be at least 27 times the monthly rent with a good credit score. If not, the renter must have a responsible party who meets these requirements to be approved.

Other than these basic requirements, access to Insurent’s lease guarantor program is quite straightforward—just fill out the online application and send in the required paperwork, typically two recent pay stubs or a letter from a new employer, the previous year’s tax returns or accountant letter, and a copy of Driver’s license or passport (for non-US individuals). They usually provide feedback within 24 hours.

3. Leap

Leap Easy offers rent guaranty and deposit replacement services to help renters secure their dream apartments while securing the landlord’s bottom line.

Tenants pay a one-time fee in the rent guaranty program, and in return, Leap Easy guarantees to reimburse landlords the full rent amount for leases up to 24 months long. They also cover a portion of the tenant’s legal costs in the event of an eviction. How much tenants pay to their rent guaranty program varies based on the lease’s duration and the tenancy terms.

For a budget-friendly monthly fee starting at $5, Leap Easy’s deposit replacement empowers tenants to move into their desired apartment without paying a traditional deposit. This fee ensures landlords receive compensation for property damages and eviction costs when the tenant eventually moves out. However, as with most apartment lease guarantor services, tenants don’t get a refund for either the rent guarantee or deposit fees, even if they do their part diligently. They perform a credit check to ensure no impact on the tenant’s FICO.

4. Steady Rent

Are you a landlord looking to expand your real estate investing portfolio but strapped for cash?

You might want to make Steady Rent your apartment guarantor service.

As part of their Owner Benefit Program, Steady Rent provides Rent Advance, a unique lease insurance that gives owners up to 12 months of rent payments upfront in one lump sum! Yes, you read it right—12 months of rent in advance, letting you use the money for alternative investments such as real estate wholesaling.

So, what’s the deal? A property manager must manage your rental units partnered with Steady Rent, and the minimum monthly rent should be $5,000. If you meet these criteria, your property manager gets all their management fees upfront.

Steady Rent’s owner benefit package also features rent protection, offering two months of rental payments for enrolled units. Landlords in this program also get market and asset reports, legislative updates, and up to $1,000 towards eviction, listing, and other legal action expenses if a tenant defaults. Unfortunately, the service is limited to 36 states.

5. Tenantcube

Tenantcube is primarily a property management software solution that covers various aspects of rental management, such as rent collection and tenant screening. This software for real estate investing also features a rental guarantee insurance add-on backed by Pensio Global, through which the platform covers a tenant’s missed rent payments until they move out.

The coverage is a landlord’s safety net for a year, typically offering up to $60,000 in missed payments, $10,000 in malicious damage protection, and $1500 for eviction legal fees. The best part is that the software’s other features are free!

6. Rent Rescue

Did your tenant fly away by night? You might consider signing up for Rent Rescue’s guarantor services to prevent recurrence. They offer rent default insurance that recompenses landlords for up to 6-months of rent when the tenant defaults.

Rent Rescue insurance programs also feature $1,000 toward legal expenses, property damages, and eviction costs.

However, landlords must meet certain qualifications. They need to show the tenant hasn’t been bankrupt or evicted again in the last five years and that they’ve had no arrears for over a year.

7. Nomad Lease

Rental properties are a profitable real estate investment, but managing them is no walk in the park. Fortunately, companies like Nomad Lease make it a tad easier.

Nomad Lease is a stone that hits two birds; they offer property management and lease guarantee services.

When you partner with them, they act as your tenant, ensuring you’ll receive the stipulated monthly rent whether the actual tenant pays it or not. Even more impressive is that you can claim up to six months’ rent upfront, generating private capital for other real estate investments.

At the same time, the company takes care of everything property management, including advertising your property and finding tenants on sites like Zillow and Redfin, tenant screening, lease management, handling repairs, and maintenance tasks.

Moreover, Nomad Lease offers a property protection program with up to $500K coverage for tenant-caused damages during the lease term. Simply put, they get the hard work out of rental property investing.

Also, note that you don’t have to commit to all their services. They offer different plans to suit different property owners. However, it’s important to know that their service fee is quite high compared to other lease guarantor services.

8. World Insurance

If you’re looking to provide tenants with no or poor credit history with rental opportunities without putting your revenue on the line, World Insurance is a good lease guarantor option. Founded in 2011, World Insurance is a broker with over 260 offices nationwide. As the second fastest-growing broker, they plan to open even more offices to facilitate seamless consultations and attentive services.

World Insurance partners with The Pensio Group of Companies to offer AssuredRent, a strategic rental income guarantee program for landlords, tenants, and developers. This program covers up to 12 months of unpaid rent, giving landlords peace of mind. It provides up to $60,000 in unpaid rent and $10,000 in damage protection. They also refund landlords up to $1500 worth of a tenant’s eviction costs. And they’re quite prompt to reimburse, usually processing the payments within 30 days of the eviction notice to the tenant as long as they’re also notified within the same period.

What makes World Insurance stand out further is that, unlike many lease guarantors, they have no minimum credit score requirements for the tenants. To qualify, tenants only need income verification and a rental history with no rent loss or damage claims in the last three years.

Generally, they offer an excellent lease guarantee program, but unfortunately, approval may take as long as one month, which may not be suitable for prospects in a hurry.

What Is A Guarantor On A Lease?

A lease, or rent guarantor, is an individual who co-signs a rental or lease contract. By co-signing the contract, the guarantor technically assumes responsibility for the lease obligations, meaning they commit to the tenant’s financial responsibility should they default on rent. The guarantor is also typically on the hook for other fees, such as move-in and out fees and late fines.

Notably, a guarantor can be anyone, from a family member to a friend, as long as they meet the required credentials. However, while you can approach anyone for this role, it’s a big ask, which is why a third-party lease guarantor company is a good option.

Read Also: Flipping Real Estate Contracts: A 6-Step Guide For Investors

What is the Difference Between a Lease Guarantor and a Co-Signer

While guarantor and co-signer are often used interchangeably, they aren’t the same.

A guarantor only steps up when a tenant cannot pay their rent and doesn’t share the space. On the other hand, a co-signer is typically listed on the lease as another tenant with the right to occupy the apartment. They also contribute to the monthly rent and other costs.

Simply put, a co-signer is like a roommate, while a guarantor is exactly that: an individual or company that guarantees to clear rent and other payments on behalf of the tenant.

Read Also: Wholesaling Apartment Buildings: Step By Step Guide

How Does A Lease Guarantor Work?

A lease guarantor works by agreeing to take financial responsibility for your rent and other costs associated with your lease should you be unable to do so. They remain on the contract as insurance to the landlord throughout the length of the lease agreement.

Although guarantor requirements vary from one landlord to another, rent guarantors are typically required to have a minimum credit score of 700 and an annual income of at least 40-80 times the monthly rent. They must also submit pay stubs or bank statements as proof of income, tax returns, and social security numbers.

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Common Reasons For Lease Guarantors

Not every landlord or property management company requires a lease guarantor. However, those that do often require one when the tenant:

•  Has a bad, limited, or no credit history
•  Is a low or irregular-income earner
•  Is a student
•  Has little to no rental history
•  Past rental history features evictions or late payments
•  Has a new job
•  Is a foreigner

Final Thoughts On The Best Lease Guarantor Companies

Lease guarantor companies allow landlords to accommodate more tenants without hurting their bottom line. Whether you’re a landlord or a tenant, our list above features some of the best lease guarantor companies in 2024 to ensure you only liaise with the best.

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