Imagine a world where every tenant had a perfect financial record. Where you could concentrate on property management and maximizing occupancy levels instead of defaulted rent payments. Where you can close more leases for creditworthy parties that you had to previously turn away, because they had no guarantor. Where rent loss is a thing of the past. Well, let Insurent® welcome you to that world.
The New York City residential rental market has been fairly level for approximately a year. The average apartment in Manhattan experienced only a 0.24 increase in rental price between January and February, from $3,89434 to $3,903.80, and saw a year-over-year decline of 0.44 percent. Conditions in Brooklyn have been slightly better. The average rental in the borough jumped 1.36 percent from January to February ($2,718.82 to $2,755.82), while the year-over-year rental increase was a more modest 0.42 percent. Queens, meanwhile, saw a monthly rental increase of 0.40 percent and a year-over-year increase of just under 2.0 percent.
Perhaps the … read more
February is typically the most difficult month for landlords trying to fill vacancies. It makes sense. Schools are already in session, internships and first jobs are still months away, and no one wants to move when there’s snow on the ground. Consequently, a lot of inventory tends to go unrented throughout the month, which means that landlords have to offer better deals to entice potential tenants who are on the hunt for a new apartment. In fact, a new study found that rents in New York City fall by as much as 5 percent when compared to the peak summer months.
On top of meaning that you can expect to get less rent for your apartment, it also means that … read more
Finding tenants during the winter months can be difficult. Most renters prefer to move when it's warm, and landlords can oftentimes find themselves having to choose between reducing rent prices and allowing an apartment to sit vacant for a month or two in the hopes that an applicant will be willing to pay the full listing price. It can sometimes be a bit of a gamble.
One way to avoid such a roll of the dice would be to increase the number of applicants who potentially qualify for the apartment. However, landlords are often cautious of such an approach. And with good reason. There is a potential risk of renting to people who have yet to establish … read more
The summer of 2017 was one of the busiest renting seasons on record. Douglas Elliman reports that, in August alone, there were 7,061 leases signed. This represents a year-over-year increase of 12.3 percent. Apartments were renting for more, too. Median rents in Manhattan were up compared with last summer by 1.3 percent, while in Brooklyn the overall median rental price, compared with last year, rose 0.2 percent.
However, these numbers don’t tell the entire story. Despite the robust demand for apartments and the modest increases in rental prices, there was also a jump in concession rates. In August, Manhattan landlords offered concessions on 24.1 percent … read more
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 … read more
Insurent is the Lease Guaranty Expert for LandlordsNY, and their Lease Guaranty Program has become an invaluable resource for local landlords. One of the primary reasons is because it allows owners to keep their vacancy rates low while avoiding additional risks or adding to operating expenses. Furthermore, signing up for the program is free and easy.
Sound too good to be true? It’s not at all.
The Insurent Lease Guaranty Program is a lot like a traditional guaranty wherein an individual vouches for a tenant to whom you may otherwise not want to lease because they lack good credit or an income of 40x the rent or more. These are individuals who are … read more
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 … read more
As the residential market in New York City softens, many landlords are going to have to become more imaginative when strategizing how to remain competitive. While offering concessions may initially pique the interests of tenants, offers like a free gym membership or a free month of rent are becoming increasingly common. If you want to maintain a low vacancy rate, keep rents from falling, and keep spending on tenant acquisition costs low without having to rent to subprime tenants, you are going to have to think outside of the box.
The rental market across New York City is increasingly tenant-friendly. Though rent prices are remaining stable, concessions are becoming far more common, and the number of available apartments in even some of the five boroughs’ most fashionable neighborhoods is rising. Eventually, you may feel as though you’ve been confronted with a choice: either allow a tenant to move in who may have a fair credit score and income that is lower than you’d want or let the unit remain vacant.
With prices in the New York City residential rental market leveling off and landlord concessions on the rise, vacancy rates are becoming a more common issue facing landlords. Landlords no longer have the luxury of being as picky as they may want to be when it comes to who they accept as tenants. Being too exclusive may cause the amount you spend on tenant acquisition to rise. On the other hand, being too loose may lead to other problems that no landlord wants to deal with.
While there will always be good reasons to deny the applications of those who raise too many red flags, sometimes applicants may seem like they would make an ideal tenant, but have an income … read more
“The Insurent Lease Guaranty Program has reached another milestone as there are now 410,000 apartments representing over 3,500 buildings which accept Insurent,” according to Insurent’s Vice Chairman & Chief Operating Officer Jeffrey Geller. In ten years, the Company has grown from a start-up to a major institution that is the gold standard for institutional guarantors of residential leases in the US. In 2016 alone, @Insurent added over 1,000 buildings to its base of participating buildings.
The reasons for Insurent’s great success are its ability to expand the pool of qualified renters, reduce vacancies, quickly close leases that otherwise … read more
Imagine a world with your rent roll being fully covered, at no cost to you. Imagine not having to wait to increase your occupancy rate simply because an applicant does not make more than forty times the rent or has no US credit.
With @Insurent you don’t have to imagine. It already exists.
Insurent, the Lease Guarantee Expert for LandlordsNY, is the first and preeminent institutional guarantor of residential leases in the US for renters who may not otherwise meet the financial requirements of landlords. This includes foreigners with no US credit, recent graduates with a limited credit history, people who may fall short of the … read more
New York City is a magnet for artists, musicians, actors, and writers. It always has been. While many of these members of the so-called creative class may earn a decent income, most work as freelancers, which means their source of income can be precarious. So what do you do when faced with this situation? A potential tenant with a little money in the bank, and a poor credit score - they are surely riskier categories of renters. They seem like good people, but you can't take on any unnecessary risk. Most of you would never accept this tenant without a guarantor...and even then, it's still a little iffy.
Traditionally, landlords … read more
Brick Underground reports on the nomadic habits of New York renters. A survey found that over 20% had moved at least four times within the last five years. While we as landlords and property managers certainly understand and sympathize with the dynamic lifestyles and changes that can suddenly take place in our renters' lives, we also need to keep our units rented and occupied with renters guaranteed to pay their rent in full and on time to maintain the operating costs of running a clean and safe building. What happens when tenants need to break their lease, want to sublet, reassign their lease, etc.?
The tenant vacating must have you, the landlord, approve the transfer. … read more
Members have been discussing lease guarantors in the Forum, namely using a company specializing in them as opposed to relying on an individual co-signer for applicants who don’t meet the 40x income multiple, foreign employed persons with no US credit, renters who may not have good to stellar credit, US and foreign students , non-employed renters, etc. One of our Expert Vendors @Insurent Lease Guaranty, shares what landlords need to know about using a lease guarantee service.
NYC renters are expected to make a minimum of 40x the monthly rent and have a good credit score. This does not necessarily jibe well with the … read more
Meet our Vice Chairman and Chief Operating Officer Jeffrey L. Geller in this LandlordsNY Spotlight:
1. How long have you been in the business and how did you get started?
The Insurent Lease Guaranty Program (the “institutional mommy and daddy”) launched its unique lease guaranty service in 2008. Since that time, we have issued over 10,000 lease guarantees representing over $500 million of rent exposure … read more
This service gives members instant access to LNY in house DHCR, HPD, and Property Management Counselors for immediate help when you need it.
Just like a concierge at a hotel who knows how to guide guests and to remove some of the uncertainty of trying something new, our staff counselors goal is to provide information and guidance to landlords and to take much of the uncertainty out of owning and operating a property in New York.