How do rent guarantee policies help landlords?

Whether you’re a landlord managing a rental unit during an economic decline or have a tenant going through financial hardships, SingleKey has a solution to ease your concerns.

Our program reduces the risk associated with renting by offering the following benefits:

• Unpaid rent reimbursement
• Property damage protection
• Financial protection when tenants break their lease
• Legal support and limited legal fee coverage through the eviction process

Tenant troubles can be costly and time consuming. When a tenant stops paying their monthly rent, many times, the only recourse for a landlord is eviction. Evicting a tenant from a rental property takes, on average, four to eight months, depending on the U.S. state where the residential property is located.

SingleKey’s Rent Guarantee supports property owners by covering up to $2,000 in paralegal fees and eviction costs.

What key features should property managers have access to?

If you’re looking for the essential features of a rent guarantee program, these characteristics will be the most effective:

Comprehensive coverage

Your concerns with comprehensive coverage, including lease breaks, unpaid rent, and legal support through eviction, are alleviated with SingleKey.

Many rent guarantee providers don’t offer lease break coverage. SingleKey provides 30 days of rent paid if your tenant leaves without notice. Also, landlords will receive up to 12 months of rent (up to $60,000) in case of delinquency.

Legal help and eviction protection and resolution

When eviction is the last resort, SingleKey will manage the entire process and cover up to $2,000 in legal fees.

Support the tenant screening process

Tenant screening is essential for filtering through risky prospective tenants and finding your top candidates. You can access credit checks, proof of income, previous landlord references, and a public records scan with an accurate tenant screening report.

A closer look at the cost of rent guarantee

Many companies intentionally leave out the cost of rent guarantee on their website or cover the minimal amount for late rent payments. Some guarantors advance annual rent for risky tenants at a higher fee.

When shopping for rent guarantee coverage, look at how transparent the company is with services and expenses. Ensure they have a no-hidden-fee policy and provide top-of-the-line tenant screening to guarantee on-time, steady rent. Always compare the cost of rent guarantee services for peace of mind that your rental is protected.

Here’s a closer look at what services some of the rent guarantee providers in the U.S. offer and what fees are associated with each company.

SingleKey

• Tenant Report: By conducting a thorough and accurate background check with SingleKey’s Tenant Report, you can identify quality applicants who are most likely to pay on time and protect your rental property. 

• Rent Guarantee: SingleKey specializes in Rent Guarantee. For only 5% of your monthly rental income, we cover 12 months of rent (up to $60,000), and guarantee up to 30 days of rent paid if a tenant unexpectedly breaks their lease. SingleKey reimburses landlords up to $10,000 if their tenant causes malicious damages. All homeowners enrolled in the Rent Guarantee Program also get two free Tenant Reports.
• Eviction Resolution: You’ll get support throughout the eviction process and be covered up to $2,000 in paralegal and eviction fees. 

Knowing the cost of services can help you plan financially and make wise decisions. SingleKey has no hidden fees. Our services and fees are transparent as we aim to build trust with homeowners from the start. 

Nomad

Nomad is a property management company that offers realtor services. Their property management offerings include screening and placement of tenants in rentals, guaranteed rent coverage for two years with existing tenants, and they claim to provide property protection for up to $500,000. Nomad automatically deducts 4% of the landlord’s monthly rental income. Here is what landlords can expect with Nomad’s rent guarantee program:

• Nomad advertises on their site that they charge a 4% monthly fee, automatically deducted from the rental payment. However, they obscure additional costs, such as a $1,000 onboarding fee.
• Nomad does not process their rent payments until the fifth of the month.
• Nomad shares the owner’s contact details with tenants.
• Nomad does not have a direct phone number to contact. Landlords must submit tickets. 

Leap

Leap tailors their services to tenants that can benefit landlords. According to their website, they approve tenants to make monthly payments instead of one large deposit sum before moving into the rental property. Leap also offers some rent guarantee options. 

The tenant pays for Leap’s cost, which aids the landlords. Since Leap does not disclose all fees on its website, landlords must contact Leap to begin the process. In contrast, SingleKey has full transparency on what you will pay. Here are some of the key points to note about Leap’s rent guarantee program: 

• Leap caters to tenants who need assistance paying their security deposit.
• Not all of the fees for Leap’s rent guarantee are advertised.

The Guarantors

The Guarantors provide rent and deposit coverage to tenants with limited financial resources. They also support landlords through Rent Coverage. The tenants pay for the coverage on a per lease basis. The cost for Rent Coverage varies from 40% of one month’s rent to just over one month’s rent.

The company offers three pricing groups, depending on the type of coverage and a renter’s risk profile:

• Low coverage: $1,200 for 2 months of rent coverage, 1 month of deposit coverage
• Medium coverage: $1,625 for 6 months of rent coverage, 1 month of deposit coverage
• High coverage: $2,000 for 12 months of rent coverage, 1 month of deposit coverage

The gross rent determines the pricing. The pricing listed above is based on a monthly rent of $2,000.

Rent Rescue

Rent Rescue is a rent default insurance company. They will reimburse some unpaid rental income and cover some legal expenses for eviction.

Rent Rescue charges $300 per unit for the following coverage:

• Up to six-month reimbursement of lost rent
• Up to three-month reimbursement due to court order, military deployment, or death

The rent guarantee program includes:

• Only $1,000 of legal expenses to pursue eviction
• Only six months of rent coverage
• Services not available in Kentucky or Alaska

SureVestor 

After filing a claim with SureVestor, property managers can receive up to $35,000 for malicious damages. The company also offers up to $5,600 in eviction expenses. According to SureVestor’s website, here’s what’s included in their rent guarantee program: 

• Will only cover two months of rent; upfront fees may apply
• 12 weeks of rent for tenant delinquency
•  Landlords will receive eight weeks of rent coverage if tenants don’t pay rent

LeaseLock

LeaseLock provides financial coverage to landlords and helps tenants with average to below-average credit get approved for rental properties. They act as a cosigner for renters with poor to average credit. 

The monthly fee varies and is paid by the resident along with their rent, which replaces their deposit. Their rent guarantee assistance may also cover the following:

• Placement of tenants into rental units with insufficient credit (upfront fees may apply)
• A monthly fee paid by the resident is included in the rent, replacing the deposit

Insurent 

Insurent’s lease guaranty program helps fill vacancies with tenants who would typically not qualify for a lease. Here are are some key points about their program:

• Guarantees the full rent obligation under lease, with exceptions.
• Late rent and legal fees are covered up to the security deposit amount.
• Only offers services in New York, New Jersey, Massachusetts, Illinois, Maryland, Virginia, Washington DC, Nevada, California, and Florida.
• Tenants who need a third-party guarantor on the lease use Insurent’s services.

The Insurent guarantee program appeals to the following applicants: 

• Those with insufficient income sources
• Renters who have an average or poor credit history

Steady

Steady Rent offers rent protection and rent advances to property owners. Property owners must partner with Steady to be eligible to use Steady’s OBP™ (Owner Benefit Package). The OBP™ provides homeowners with up to 12 months of rent upfront and will pay the property management fees. If the property owner opts out of advance rent, they will receive two months of rental income protection.

Steady’s package includes the following benefits: 

• Up to two months of rental income protection 
• Only $1,000 of legal expenses for eviction
• Up to two months of rental income protection without an advance

Rhino Insurance

Rhino Insurance offers coverage for renters who don’t meet a property owner’s specific move-in requirements.

Instead of renters paying a security deposit, renters pay a non-refundable $5 to $10 monthly fee for an insurance policy covering any potential damage or lost rent. In addition to these offerings, Rhino outlines some of the following details in their rent guarantee offering: 

• Rhino covers the amount on a policy. If the policy amount is $1,000, then Rhino will only cover $1,000. 
• The coverage is not compatible with a high-cost apartment.

FAQ: U.S. providers of rent guarantee