The Insurent® Lease Guaranty Program has become a popular tool to assist landlords, condo/co-op owners, renters and brokers in closing residential leases.
Insurent is now broadening their lease guarantee program to include corporate leases.
Historically, many landlord have been unwilling to accept corporate leases for a variety of reasons. This new Insurent option could be a useful tool for landlords who otherwise don’t want to risk renting to companies.
Often, corporations prefer to hold the lease of a residential apartment, condo or townhouse because it is inconvenient to track leases of individual employees, and may not offer the same financial benefits for the company. Also, if a company is contemplating a large lease, like the typical $7,000 to $30,000 per month for a NYC unit, an individual employee may not qualify.
Insurent has started insuring leases for a number of public and private U.S. corporations as well as U.S. subsidiaries of foreign private and public corporations and foreign corporations.
Charles Schoenau, the founder and COO of Insurent, comments, “From the residential owner’s perspective, the ability to close a very expensive lease with a corporation can be a great option because it clearly increases the owner’s cash flow and without any risk if Insurent guarantees it. With very large leases, owners know that it is difficult to find qualified renters. In many cases, corporations clearly have the easier capability of assuming a large rent obligation.”
According to Jeffrey Geller, the founder and COO of Insurent, the company already issues guarantees on other segments, including creditworthy responsible college and professional graduates entering the workforce who don’t meet the NYC landlords’ 40x-50x annual income/monthly rent multiple, foreign executives relocating to the U.S. who have no U.S. credit history, relocating U.S. executives, self-employed persons, non-employed foreign and U.S. renters with significant cash liquid assets, and international and U.S. students with Responsible Parties. “I also expect that we will continue to create additional innovative options for all in the residential rental market in the near future,” Geller adds.
The Insurent Lease Guaranty Program is underwritten and issued by Argonaut Insurance Company, a property and casualty insurance company rated A (Excellent) by A. M. Best. Instead of looking for an individual guarantor or co-signer, or having to pay a significantly larger security deposit or prepaid rent, a renter may utilize the Insurent Lease Guaranty to satisfy the landlord’s financial and credit requirements.
The Insurent Lease Guaranty Program has been featured in the New York Times, The Real Deal, The New York Real Estate Journal, Real Estate Weekly and Multi-Housing News.