With the school year beginning, many landlords will face a difficult question: Should I rent to an US and international student or group of US and international students? It’s not an easy decision because you oftentimes have no way of knowing what type of people students are. There is no public background to check. Many students have never rented an apartment before and a similar number have yet to establish much of a credit history. International students have no US credit, and their parensta re overseas.
During periods of extremely low vacancy rates, cautious landlords have the freedom to only rent to people with established credit, good jobs, and thousands in savings. Consequently, they may not ever rent to students because they do not see the need to assume additional risk of rent loss. However, vacancy rates are on the rise.
While you may have to be more willing to rent to students because of rising vacancy rates, it doesn’t mean that you will have to assume more risk or rely on co-signers who may live on the other side of the country, provided you enroll in the Insurent Lease Guaranty Program. It’s kind of like an institutional mommy and daddy backed by Argonaut Insurance Company, a billion dollar insurance company with an A (Excellent) rating by A.M. Best.
The process is simple. Tenants apply for the @Insurent Lease Guaranty Program. If approved, they just pay a one-time guarantee fee. This insures landlords from any potential rent loss. All landlords have to do is sign up their building under the Lease Guaranty Program. It takes just a few minutes, and it will expand your pool of potential renters to include not just students, but freelancers, recent graduates, and even foreign workers who may not have established U.S. credit yet.
On top of reducing any risk of rent loss, it will also keep your vacancy rates low. Best of all, it’s free for property owners.