Mom-and-pop landlords own around in the US, constituting nearly half of the country's overall rental market. With fewer than 10 properties in their portfolio, these investors encounter a variety of unique challenges.
1. Sourcing Reliable Tenants
While there are many, completing thorough background checks tops the list, but it’s expensive and time consuming for smaller landlords. Luckily, TheGuarantors’ products can help protect your from risky tenants. Our Lease Guarantee and Security Deposit replacement products are insurance policies your renters pay for, that cover you in the event of default or unit damage. Between that and a decent background check you can greatly reduce your risk.
2. Renters Defaulting on Payments
The pandemic showed us the hardships faced by mom-and-pop landlords when renters default on payments. In 2020, CNBC reported that didn't have access to enough credit to cover lost rental payments, which is easy to believe given the average eviction could end up .
Enter TheGuarantors. You can invite your renters to purchase a lease guarantee with us. If your renter defaults on their rent, you can file a claim with us to be reimbursed up to your coverage amount, meaning you can reduce your risk more easily.
3. Unexpected & Expensive Repairs
Sometimes, unforeseen events can leave properties unlivable. The good news is with regular checks, you can mitigate the risk. A strong tenancy agreement will allow you to maintain steady communication with renters and complete regular property checks. So you can ensure your units are staying in great shape, and better manage the risk of larger expenses down the line.
4. Attracting Renters
The rental market is highly competitive at the time of this writing—especially in areas like New York. No matter what the market looks like having access to a large bank of applicants is always important when you're putting a unit on the market.
With TheGuarantors, qualifying a pool of quality local renters is fast and simple. Landlords can quickly upload their existing and future properties, and easily invite renters to participate in our product portfolio.