Keeping Risk and Vacancy Rates Low with Insurent

New York has always attracted young and creative people. This is particularly true in the early summer as college students flood the city in search of internships, while recent graduates come here to begin careers.

To be young in New York City is thrilling, but it’s also difficult. This is especially so when you’re working your first job out of college and you have loads of student debt hanging over your head. The average salary for someone who graduated in 2016 was $50,556, which translates into an ability to pay $1,263.90 in rent (provided one follows the 40x rule). However, recent graduates should probably be paying significantly less than that because the average amount of debt for members of the graduating class of 2016 was $37,172.

Given that the average studio apartment is $2,196 in Brooklyn and $1,809 in Queens, it’s unlikely that a recent graduate will be able to move into their own place. Even moving into an apartment with roommates is hard, since the average rent for a two-bedroom in Queens is $2,605 and $3,487 in Brooklyn. Even if one lives with a significant other, the rent is still out of many recent graduates’ ranges.

While graduates are having problems affording most apartments, landlords, meanwhile, are starting to have a problem keeping vacancy rates down. New York’s inventory is booming, and the metropolitan area will see almost 27,000 new apartments become available in 2017. This is more than anywhere else in the country.

In other words, landlords will need every tool available to combat rising vacancy rates, which means they may have to consider renting to individual who don’t quite make forty times more than their rent or someone who lacks stellar credit—be they recent graduates, US or international students, freelancers, or foreign workers.

The good news is that landlords can rent to such tenants without assuming unnecessary risk by working with the Insurent Lease Guaranty Program. Insurent acts as an institutional guarantor, thereby insuring landlords from any potential rent loss. Think of them as an institutional "mommy and daddy" backed by Argonaut Insurance Company, a multinational billion-dollar insurance company with an A (excellent) rating by A.M. Best.

The process is simple. Renters apply for the Insurent Lease Guaranty Program via Insurent’s website or mobile application. If approved, they just pay a one-time guaranty fee. For U.S. renters, the amount is between 75 percent and 90 percent of one month of rent; for foreign renters, the amount is between 100 percent and 110 percent of their rent.

The process is also fast. @Insurent qualifies renters anytime of day and normally prequalifies applicants within 30 minutes. They typically issue the guaranty for the lease within 24 hours.

For landlords, it’s even less painless. It takes just a few minutes to register each of your buildings with the Insurent Lease Guaranty Program. More importantly, it’s free.

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