Research shows struggle for small to medium-sized property owners in wake of pandemic, eviction moratoriums, and economic uncertainty
NEW YORK–(BUSINESS WIRE)–TheGuarantors, the fintech company building smart financial and insurance solutions for renters and landlords, today announced the rollout of its new product platform designed to help protect small- and medium-sized rental property owners. This launch follows the company’s announcement that it had raised $50 million in Series C equity funding in April.
Amidst considerable economic uncertainty and resulting fears of economic hardship, independent landlords — who own approximately 22 million rental properties across the United States — are at proportionally greater risk of renter default than institutional real estate operators. Independent landlords often do not make a profit; one in three actually regularly report annual losses1. With the unveiling of TheGuarantors’ new product platform, independent landlords can now protect their rental income at no cost to the landlords themselves, addressing the exposure these landlords face while also providing renters the flexibility of lower move-in costs and the opportunity for greater housing access.
The platform allows independent landlords to access TheGuarantors’ insurance products and invite their prospective renters to apply in a matter of minutes. In exchange for the renter paying a fee (typically less than one month of rent), TheGuarantors issues a Lease Guarantee policy that protects the landlord’s rental income against loss due to rent defaults, vacancies, lease breaks, and other common risks. The company also offers a Security Deposit Replacement solution that helps landlords meet changing deposit regulations, eliminate administrative hassles, and attract more renters by offering a deposit alternative that significantly reduces move-in costs — an increasingly common amenity for institutional landlords. Both products provide more protection for landlords at a significantly lower up-front cost to renters than if they were required to provide deposits for equivalent coverage.
“Small-scale landlords are integral to the supply of affordable housing. As we expand our offerings to independent landlords, we’re eager to meet heightened demand from both property owners and their renters for more security, more options, and more relief to help avoid renter default and distress altogether,” said Julien Bonneville, Founder and CEO of TheGuarantors.
Founded In 2015, TheGuarantors grew quickly by providing a depth of underwriting expertise, customer service, and technology to create a modern leasing experience for renters and landlords alike. Previously, TheGuarantors partnered almost exclusively with the country’s biggest institutional landlords, representing approximately three million units nationwide. For the first time, the company is making its products widely available to assist independent landlords and their renters.
“Small-scale landlords are more economically vulnerable than institutional operators,” said Bonneville. “It’s critical that we extend the same protections to independent landlords so that they, in turn, can extend access and affordability to millions of renters who need comfortable, quality housing.”
About TheGuarantors
TheGuarantors is a fintech company that improves affordability and accessibility for the 46 million American households that rent their homes. Through its platform and partnerships with multiple A-rated carrier partners, TheGuarantors offers renters and landlords a unique suite of financial tools. The company ranks on the lists of The Inc. 5000, Forbes’ Best Startup Employers, and The Financial Times’ Fastest Growing Companies.
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1 The Terner Center for Housing Innovation at UC Berkeley |
Contacts
Media contact:
Emily Kaufold
emily.kaufold@antennagroup.com
201-465-8033
