- Renter guarantors are projected to become a $1B industry by 2032, growing rapidly due to rising rent and stricter lease requirements.
- Platforms like TheGuarantors and Insurent act as virtual co-signers, charging tenants 75%–150% of a month’s rent.
- These services reduce rental fraud risk for landlords and expand access for non-traditional and international renters.
- High fees may exclude low-income tenants, even as rent surges in smaller and mid-sized US cities.
A Market On The Rise
A growing number of renters are turning to online guarantors to secure leases, fueling what experts say will soon be a billion-dollar industry, reports Bisnow. With landlords tightening screening standards and rental fraud becoming more widespread, the need for third-party guarantors is accelerating — particularly in major urban and student housing markets.
How It Works
Online guarantor platforms like TheGuarantors and Insurent function much like traditional co-signers, backing tenants who fall short of standard requirements. In return, renters pay a one-time fee — typically equal to 75% to 150% of one month’s rent. If a tenant defaults, the guarantor pays the landlord and then seeks reimbursement from the tenant.
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More Than A Co-Signer
Guarantors do more than cover rent. These fintech and proptech firms often handle tenant screening for landlords, offer fraud protection, and widen housing access for gig workers or self-employed tenants who might otherwise be rejected. Verified Market Reports notes that the services are already becoming standard in rental agreements, especially for international students.
A Widening Gap
Still, the cost of using a guarantor service can be prohibitive. Realtor.com found that nearly half of renters couldn’t afford the added expense as of last year — a troubling trend as rent prices continue to rise even in smaller markets like Newark, Cleveland, and Fort Wayne.
Looking Ahead
While the market is being driven by residential demand, commercial landlords are also beginning to adopt virtual renter guarantors. The flexibility offered by these services suggests their role in lease transactions — both residential and commercial — will continue to expand as economic uncertainty persists.
Why It Matters
With rental fraud affecting over 93% of property managers and lease requirements getting stricter, renter guarantors services are becoming more than a stopgap — they’re a new pillar in the rental ecosystem. But without affordability solutions, the very tenants who need them most may be left behind.
