What is a Co-Signer Service?

Many landlords and property companies require prospective renters to meet financial, employment, and rental history qualifications to be eligible for renting. However, there may be some cases where you’re close to meeting the qualifications, but your application needs a little boost. If this happens, and you don’t have anyone who can co-sign for you, you can use co-signing services to improve your rental application and better secure the property you want to rent.

What is a co-signer service?

A co-signer service is a financial service that provides assistance to individuals who may not meet the qualifications required by landlords or property companies when renting an apartment. In situations where a prospective renter falls short of financial, employment, or rental history requirements, a co-signer service can help improve their rental application and increase their chances of securing the desired property.

A co-signer service acts as a guarantor by co-signing the lease agreement on behalf of the renter. In the event that the renter is unable to fulfill their financial obligations, such as paying rent, the co-signer service will step in and cover the costs. This added layer of security provides reassurance to landlords and property owners, allowing them to feel more confident in renting to individuals who may have faced previous financial challenges or have limited credit history.

Here are some co-signer companies to consider:

• Insurent
• Jetty
• Leap
• Liberty Rent
• OneApp Guarantee
• Rhino
• The Guarantors

Read below to find out more about each.

What does using a co-signing company involve?

Using a co-signer company, also referred to as a lease guarantor company, involves:

• Applying for the co-signing service
• Providing required personal and financial information to the company
• Getting approved by the co-signing company
• Having your landlord approve your co-signer
• Paying the service fee, which is often a percentage of your rent
• Having the co-signer company pay your lease if you ever cannot pay
• Reimbursing the company if you do have them pay on your behalf

You may use a co-signing company if you don’t meet a landlord’s or property manager’s rental qualifications and have no one in your life, such as a family member or friend, to co-sign for you.

How much does it cost to hire a co-signer for an apartment?

The application and service fees can vary by company. Since many companies often charge a percentage of your rent as the co-signing service fee, how much you pay depends on how much the rent of the unit is, which may be determined by size, location, amenities, popularity, and lease length.

Co-signing companies for apartments

Here are some of the top co-signing companies for apartments, their service offerings, and their fees to help you get your search started:

Insurent

Insurent Lease Guarantor Service charges a one-time, upfront payment of 70% to 90% of one month’s rent for a 12-month lease for U.S. citizens. Non-U.S. citizens will expect to pay 98% to 110% of the month’s rent as a lump sum. Some of the benefits of going with this company include extended protection and lower-than-average annual rent income requirements. There’s also no application fee.

However, Insurent only covers prospective renters in nine states: New York, New Jersey, Massachusetts, Virginia, Maryland, Illinois, Nevada, California, and Florida. They also cover renters in Washington, D.C. If you’re getting an apartment with a roommate, they must also apply and be approved, too.

Jetty

This company provides security deposit alternatives to help you secure a rental at one of their partner properties. Jetty offers flexible pricing, an easy-to-complete online application, and even renters insurance. While they don’t offer rent coverage, applying for their services can help you get into a property if you are unable to find a co-signer and have debt or little-to-no credit. This means that they’re not a traditional co-signer service since you can only use their services at one of their partner properties, which are located in more than 40 states.

Leap

Leap provides co-signer services at 4.5% to 8% of the annual rent for a 12-month lease, which is fairly low compared with other companies. Some of the key benefits of Leap’s services include no application fee, a quick, easy-to-complete online application, a fast turnaround on approval, and options for non-U.S. citizens. However, some of the drawbacks include requiring a roommate to also apply and no rental coverage.

Liberty Rent

Liberty Rent has a guarantee program that helps those who’ve been rejected by rental properties get approved, including by sending a co-sign addendum to the landlord or property. The online application process is relatively simple and even begins with a brief quiz that assesses your likelihood of being approved with their services. You get a score between 0 and 100, which determines whether they’ll co-sign. And everyone with a score better than 80 is approved.

However, their services are limited to a few properties, and there’s a $35 application fee for everyone on the lease.

OneApp Guarantee

This company provides co-signer services to help remove many barriers to housing that people experience. OneApp provides rent support and damage coverage, and they accept online payments. Some drawbacks include that all roommates have to apply, all applicants have to reapply after 12 months, and they may require landlord approval before co-signing.

Rhino

Rhino offers agreements up to 24 months and alternative security deposits. They are available in over 40 states. However, they are limited to about 500,000 properties and require you to use their security deposit services. 

The Guarantors

The Guarantors also provides co-signing agreements up to 24 months long and is available in over 40 states. However, they are accepted only in about 400,000 apartments. There’s also a pretty hefty $300 cancellation fee should you want to terminate your contract early. You also must have decent to good credit to qualify.

Considerations for co-signing services

Since co-signing services is a newer industry, there may be companies offering illegitimate or risky services under the guise of trustworthy co-signing. Always check a company on the Better Business Bureau to make sure they are legit and trustworthy.

If you don’t qualify for a rental and don’t have a co-signer to help you out, you do have options, like paying a co-signing company for their lease guarantor services. However, this option comes with its own set of pros, cons, and risks that you should review before applying or accepting an offer. This can help you make the most informed decision for your renting future.

Frequently asked questions