There’s a burgeoning business in companies that will pay tenants’ rent if they can’t, but the price for the service isn’t cheap. The fee can be as low as 75% of one month’s rent, up to 150%.
If a renter defaults on a lease, the guarantor may cover the payments, but the renter is still on the hook. In this instance, the money is no longer owed to the landlord but to the guarantor.
A study from consulting firm Verified Market Research estimates the global rent-guarantor market will generate $775 million in revenue this year, which is up nearly 10% from 2024. And by 2032, it could nearly double and become a $1.53 billion industry, according to the study.
Source: Morningstar
Multifamily Market News 