As you know, Landlords’ requirements in the New York City are very difficult for many renters to meet, particularly college and professional school graduates entering the workforce. Landlords typically require that an applicant's annual income be 40 to 50 times the monthly rent, and that the applicant has good credit. For applicants whose income does not meet the test or who has no credit score, a landlord will require a guarantor on the lease. Typically in this situation you would ask your mother/father to act as your guarantor or co-signer. If you have ever been through this process before in NYC then you know it is very difficult for most people’s parents to be approved as a guarantor.
A landlord may require the guarantor or co-signer to reside in the local metropolitan area, and have an annual income of 75-90x times the monthly rent. For example, a landlord may require the annual income of the guarantor/co-signer to approximate $225,000- $270,000, if the renter is seeking to rent an apartment with a monthly rent of $3,000.
In addition, the landlord will require the guarantor or co-signer to submit extensive due-diligence documentation to the landlord, such as 2 to 3 years of tax returns, net worth statements from their accountants, bank and brokerage statements. In addition, the landlord will require the guarantor or co-signer to have a very good credit report, showing no delinquencies, defaults, judgments or bankruptcies.
All of this takes considerable time and effort for the parent to compile for the landlord. In many cases, the time taken causes you to lose your chosen apartment. The Insurent® Lease Guaranty offers a fast and simple solution.
Rather than acting as a co-signer or guarantor, the parent now has the option to utilize the Insurent® Program, with Insurent being the guarantor, and pay the small Insurent® fee for their son or daughter rather than subjecting themselves to the burdensome, time-consuming, expensive and invasive process required of guarantors/co-signers by landlords.
