Companies Guarantee Tenant Rents if Default

Check out Liberty Rent Guarantee and AON Rent Protect.  If you have tenant prospects who don’t quite meet your credit requirements, these companies might guarantee up to 6 months of rent in the event of default. There is a fee, but it is modest, and you should make the tenant pay the fee.  The tenant then goes through underwriting for the insurer, which has lower credit scoring requirements than you probably have.  If successful, the company will guarantee up to six months of rent.  Usually, there is a “deductible” and you don’t get paid for the first month of default. BUT, you get a tenant, you get peace of mind, the insurance company gets profits on a good business model, and the tenant gets a place to live. Everybody wins!

HERE is a wiki article with more information.