Lease guarantor companies reviewed | co-signer products

What is a guarantor on a lease service?

Has your rent application been rejected? Are you trying to land an apartment in a competitive market such as New York City? Did you just move to the US from another country? Or, perhaps you are looking to move to a better neighborhood? Lease guarantor products help people qualify for a rental lease in situations where they may be asked to obtain a co-signer.

These services act as co-signers and “guarantee” that the landlord will be paid rent, deposits, and damage fees if you miss payments or default on your rent.

What is a guarantor on a lease?

A guarantor on a lease is simply someone who guarantees your lease obligations. This could be a family member, a friend, or a third-party service.

Third-party services help those having a hard time qualifying for a lease due to issues such as marginal credit or short work history but don’t have anyone who can, or is willing, to be their guarantor.

Guarantor services may act as your co-signer, help with your security deposit, or pay your rent if you cannot.

Common reasons that a landlord or property management company may require you to have a lease guarantor

• Not meeting the income requirement
• New job or short employment history
• No credit or marginal credit
• Moving from another country
• No rental history
• Self-employment or inconsistent income
• Past includes an eviction or bankruptcy
• Full-time student status
• Landlord requires it

How to shop for third-party lease guarantor or co-signer service

Does the apartment complex that you want to live at work with the lease guarantor?

Some third-party services work with specific properties only. So ask the property manager before you spend too much time researching what your options are.

Does the lease guarantor offer services in your area?

Not all lease guarantor companies offer their services in all states. Check their websites to see if they gave coverage in your area.

When we compared these services we looked at pricing, how services are offered, what services are offered, location, and more.

Pros and Cons of a lease guarantor product

Guarantor Product	Pros	Cons
	• Comprehensive coverage • Good customer service • Flexible payment plans • Wide acceptance among landlords • Good customer service • Available in 40+ states	• Higher costs compared to some competitors • May have strict eligibility criteria
	• Can use liquid assets for approval • 27.5X annual rent income requirements • Protection is even extended a bit beyond the end of the lease.	• Limited geographic areas • Pricey for short-term leases
	• Competitive pricing • Offers additional services like co-signing • Wide acceptance among landlords	• No rent coverage • No security deposit service • Signatory roommates must also apply
	• Specializes in high-risk tenants • Helps rejected applicants get approved • Simple application process	• Prices vary significantly • Limited network of participating landlords
	• Streamlined application process • Often lower priced than competitors	• Not available in all states • May need to pursue landlord approval • Limited customer service
	• Known for affordability • Integrates with existing lease agreements • Available in 40+ states	• Coverage limits lower than competitors • Some landlords may not accept the product • Requires use of security deposit product

How much does a co-signer service cost?

Generally, most services charge roughly a month’s worth of rent for co-signer services.

The cost of a co-signer service varies among companies and is influenced by factors such as:

• The rent amount
• Lease duration
• Tenant’s creditworthiness
• An eviction history

For instance, companies like Insurent and The Guarantors may charge a percentage of the annual rent, typically ranging from 5% to 10%.

Some services, like Rhino, are known for affordability and might offer lower rates.

It’s essential to compare the pricing of different services to find the most cost-effective option for your situation.

Why do landlords require a co-signer?

A landlord or property manager may require a co-signer to approve your lease application if they consider you a risk.

Risk may be due to your financial situation, rent history, credit score, or other unique circumstance.

If you don’t pay rent or violate your lease agreement they can pursue the co-signer for payment.

If you are not sure how much rent you can afford, see our rent calculator.

How hard is it to get a lease guarantee contract approved?

The difficulty in getting a lease guarantee contract approved depends on your creditworthiness and the requirements of the guarantee company.

For example, Insurent requires 27.5X times the rent or $55,000 using our example. If you cannot qualify for the lease on your own, it is worth seeing if a lease guarantee company can help you.

Some companies, like LibertyRent, specialize in high-risk tenants and may have more flexible criteria, while others may have stricter eligibility requirements.

Lease guarantor approval process

The approval process typically involves credit checks and may require additional documentation.

Services with a streamlined application process, such as OneApp Guarantee, can make approval easier and quicker. While your credit and income will be verified, they may be able to offer approval to those with a lower income than what the property requires.

For example, many property management companies may require the applicant to make as much as 40X or more of the annual rent. So if your rent would be $2000 per month, you’d need to make a minimum of $80,000 to qualify. A rent guarantee service will cosign for you if you make less.

Can a lease guarantee service help me save money?

These services may help you decrease the upfront costs you may have been required to pay on your own.

For example, if you have marginal credit or a new job, the rental company may require you to pay first and last month’s rent, rather than just your first month’s rent.

It also may prevent you from being charged a higher security deposit.

However, it’s important you weigh the service fee against potential deposit savings and consider the long-term financial implications. For some, the cost of a guarantee service may be more economical than the security deposit, especially in markets with high rental rates — but is not refundable.

How does a lease guarantor work? 

Lease guarantors work by ensuring to your landlord that you’ll meet your lease obligations. Like a co-signer, they are taking a risk for you.

In many cases, their requirements may be more lenient than the property management company’s requirements.

1. How to obtain co-signer services?

Obtaining a guarantor or co-signer service typically involves four steps:

1. Ask the landlord if they work with lease guarantor companies.
2. Research a provider. See the table above to help. Some properties have a preferred provider already, so be sure to inquire in advance.
3. Once you select a provider, complete their application process. Prepare to provide personal and financial information like proof of income, employment verification and undergo a credit check.
4. After your application is approved, pay the service fee which is often a percentage of your rent.

2. What a lease guarantee services cover?

A lease guarantee or co-signer service covers:

• Rent payment assurance which is it’s core function
• Lease duration – usually ten entire lease with continuation insurance
• Damage liability – some guarantees may also cover damages to the property but this varies by provider.

3. How does a claim or lease guarantor service pay on your behalf?

In the case of a missed rent payment, the landlord can make a claim to the guarantee service, which will cover the owed rent per the agreement.

Of course, rent is never free. If the service makes any type of payment for you, you have to pay them back. And just like a landlord, they will take you to court to collect fees if needed.

How do I apply for lease guarantor services? 

In some cases, your future landlord will provide the service with your application details. In other cases, you will need to provide typical information such as ID, proof of income, and employment information.

You can apply online and expect a response usually within 24 hours.

Is using a third-party lease guarantor product worth it?

In most cases, it is worth it provided that you can make all of your payments including rent. The average upfront cost of one month’s worth of rent is often worth it to obtain a lease in a competitive market.

If you feel that your financial future may be unstable, you may want to consider a more affordable market or simply stay where you are at. 

Want to get credit for paying your rent on time? See, Adding rent payments to your credit report.

Rent lease guarantees FAQs

Are co-signers and guarantors the same? 

They can be. Both are responsible for covering your expenses if you default on your lease agreement. However, guarantor services may also offer additional assistance such as security deposit help and renters insurance. 

How do I find a guarantor or co-signer for my apartment lease?

Lease guarantee services may be offered by your property manager or you may need to obtain it on your own. To find one on your own, contact those that we reviewed or look for a service that offers lease protection in your area.

Do I have to have good credit to use a lease guarantee service?

In most cases, you do need decent credit and proof of income to obtain a lease guarantee agreement. However, often the income requirements are lower than what landlords require and they may accept proof of liquid assets as proof of ability to pay.

What happens if I break the lease? 

You are still responsible for every agreement you make in the lease including rent payments, late fees, cost of damage to the unit, legal fees, and more. Legal fees may also be incurred by the lease guarantor, so don’t sign any agreement that you feel you will not be able to keep.  It can become quite expensive.

Do lease guarantee agreements affect my credit?

As part of your rental application, the service will run a credit check and, if you do not make your payments or default, your credit will be negatively impacted.

How much rent is covered?

While you may be able to obtain rent protection for two years, the service is not going to pay two years of your rent. You are still obligated to pay your rent every month. If the service has to pay your rent, you have to pay them back. How quickly you are required to pay them back should be stated in your contract.

What if I cannot find a co-signer?

When asked for a co-signer, most will ask a financially capable family member first. But not everyone has that option or a willing family member or friend. If you do not know someone who can co-sign for you, you can contact a lease guarantee or co-signing service to see if you qualify for their assistance.

Does my roommate need to have their own lease guarantor or co-signer contract?

This varies by provider. Many will guarantee for the rental unit so you can split the fees. And, you should have a roommate agreement in place should one of the roommates not fulfill their obligations. But if the roommates could not qualify for the entire rent on their own, everyone may need to obtain a co-signer.

Lease guarantor services can be helpful to those trying to get a lease in a competitive market or to those who marginally cannot qualify on their own for their preferred community. If a property manager or landlord offers you the option to use one of these services, it may be in everyone’s best interest if you take advantage of what the service has to offer. These services may save you money in the long run and give your landlord the confidence to rent to you.