Two Faces of Rental…
Real estate investors, property owners, and related service providers see rising rents and increasing rental demand as investment opportunity:
- At its best, this investment drive will lead to the construction of more rental units which may stabilize demand and pricing.
- At its worst, this could result in evictions — already considered at crisis levels by many — rising above the almost 1 million evictions annually.
As research raises awareness of the social impact of rent burden is there room for both sides — landlords and tenants — to benefit from decreasing eviction and creating healthy stable rental markets?
After more than 40 years in property management, Jeff Cronrod developed LeaseGuarantee, a cosigner product that guarantees tenant performance to protect landlords from financial loss through eviction. This product helps landlords, but I asked Cronrod whether tenants may benefit, too.
Cronrod responded by email: "As for tenants, LeaseGuarantee may be used to offset all or part of the required move-in money, thus significantly reducing the cash required to secure a new rental. Additionally, a tenant who has had some credit challenges in the past can use LeaseGuarantee to help them qualify for a unit without seeking a cosigner. A tenant who successfully completes their tenancy without delinquency may also have their credit bolstered if reported to the credit bureaus."
Renting is no longer the cheap, easy-to-arrange housing alternative in many communities. Rents continue to steadily increase, demand is continually growing, homeownership is on the decline, incomes have not kept pace with rising real estate and rental costs, and short-term rental is monopolizing housing stock. What's next?
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