Posts Tagged 'guarantors'

A Private Company as Guarantor? Introducing “Insurent” via the NY Times

It sounds like a strange idea at first: prospective tenants without a sufficient credit history can now hire a private company to guarantee their rent. For a flat fee, a new insurance company called “Insurent” will guarantee your rent to a landlord for up to one year. For people newly arrived in New York or those without a parent to act as guarantor, this idea is a lot less strange. The concept of the guarantor is uniquely New York and as rents rise, the time-worn formula that landlords use to calculate whether you can afford the rent (40x the monthly rent) has gotten more difficult for new hires and recent graduates to afford. For a $2000 a month apartment a tenant is expected to earn $80,000 a year and the guarantor formula (80x the monthly rent) requires guarantors to earn $160,000 to help a son or daughter rent that same apartment. Continue reading ‘A Private Company as Guarantor? Introducing “Insurent” via the NY Times’

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Michelle Erfer is a licensed Real Estate Salesperson in New York City.
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