“We can be your guarantor!” — it’s the slogan we were founded on and it’s truer today than ever.
In fact, we guarantee over $15M in new rent every month, and we’re the exclusive partner at many of NYC’s top owner/operators. If you have a guarantor, odds are it’s us.
The experience has taught us a lot — most importantly that move-in costs drive friction in leasing, and that on-site staff are some of the most overworked professionals in the industry. Let’s take a closer look:
- Move-in costs drive friction: Apartment pricing is highly elastic, which means demand is very sensitive to changes in price. Right now, we’re seeing significant landlord concessions not just in New York, but nationally. This is due in part to significant development inventory coming online through 2020 and partly due to cost-consciousness from renters, including Millennials who are loaded with debt and have historically low savings.
- On-site staff are overworked: the job scope is unmanageably wide, and the hours are long. From budgeting and marketing, to resident services and property maintenance, to dealing with brokers, listings platforms, and the pizza guy who got the unit number wrong, again. Every leaky pipe, broken radiator, and vacant apartment is a job to be done. Oh, and your clients live above your office, literally.
At TheGuarantors, our mission is to help mitigate these challenges. That’s why we launched our full Risk Management Platform. In addition to lease guaranty, it includes:
- TheGuarantors Security Deposit Replacement (SDR): SDR provides more coverage than a traditional security deposit for just 17 cents on the dollar. How? Using insurance to underwrite the risk, which not only reduces tenant cost but also eliminates landlord administrative hassle. And furthermore, SDR creates a constantly replenishing pool of capital for the landlord that can be used for items above and beyond what is covered by traditional security deposits, like wear and tear.
- TheGuarantors Renters Insurance Compliance (RIC): if a landlord wants its renters safe and insured, we do all the work. TheGuarantors’ technology has automated the process of getting renters covered, raising the number of tenants with insurance by five times in some buildings. Plus it’s free for landlords and cheap for renters — pricing starts at just $75 per year.
We estimate it takes 1 hour per resident per year to handle renters insurance internally, which is a full time job for every 2,000 units in a landlord’s portfolio. Traditional security deposits require a lot of work: collecting cash, depositing the cash, calculating interest, preparing 1099 tax forms. That’s a lot of potential savings.
2018 is only half way through. More to come…