With resurgent real estate prices in markets of great rental demand like Las Vegas, New York and Florida, along with diminishing inventory due to condominium conversion, heightened approval requirements for renting a home has been an issue for many who have not been able to maintain great credit over these recent years of economic instability.
For those who meet the income and background requirements for renting a home but, like millions of Americans, have experienced medical issues, divorces or income disruptions that have adversely affected their credit score, having a co-signer that provides rent assurance for the landlord could be the difference between being approved or denied.
A New Real Estate Services Sub-Sector like Zillow (NASDAQ:Z) or Trulia (NYSE:TRLA)
Like we have seen with the growth of online real estate service companies like Zillow (NASDAQ:Z), Homeaway (NASDAQ:AWAY) and Trulia (NYSE:TRLA), another real estate services sub-sector seems to be growing in the field of co-signing where COMMERCIAL co-signing replaces the at times ill-advised personally co-signed leases. Where, for a seemingly reasonable fee, relatives and friends are relieved of the administrative headache and embarrassment of becoming a rent guarantor.
Rent Approval for Tenants with Low Credit Scores
Landlords and property managers of Apartment Building, Commercial Properties, Residential Real Estate and even unimproved Land now have have an expanded market of credit worthy prospective tenants due to the rent assurance created by these guarantees.
With many families locked out of a sales market that seems to be running away from them, renting is a much more cost effective option and those with marginal credit now have companies like Co-Signer.com (OTCQB:COSR) and Insurent to guarantee their lease. Co-Signer Inc. is based in one of the highest demand rental markets in the country, Las Vegas, NV but has contracts through the country from Georgia to Alaska. (COSR released news today & retained our parent company last week)
Expanded Benefit for REITs like Avalon Bay (NYSE:AVB)
Of course, the benefit of this new model is not reserved for the purveyors of the service themselves. Residential REITS, like Avalon Bay (NYSE:AVB), ARMOUR Residential REIT, Inc. (NYSE:ARR), LTC Properties Inc(NYSE:LTC) and private companies like The Trump Organization, Hines Real Estate Investment Trust, Inc., and Independence Realty Trust all stand to benefit from the expanded rental market created by the availability of commercial co-signing rent guarantors.
