CHALLENGE #1: RISING RISK OF MISSED RENT
THE ISSUE
Renters are confronting higher debt loads. Credit card delinquencies have nearly doubled since 2021, and auto loan delinquencies are also rising, especially among younger borrowers. In May 2025, the U.S. Department of Education announced it was resuming collections of defaulted federal student loans, adding hundreds of dollars per month in obligations for millions of renters. Nearly 30 percent of borrowers (about 9.7 million people) were already past due on their payments, representing $290 billion in outstanding loans. With more of their income already committed to debt payments, rentersare more likely to miss or delay rent. For landlords, late or missed rent undermines cash flow and creates uncertainty around when or if revenue will arrive.
are past due on their student loans 9.7 MILLION PEOPLE
$290 REPRESENTING BILLION
in outstanding loans
How TheGuarantors Helps
TheGuarantors’ Rent Coverage provides payment when renters fail to meet rent obligations, ensuring landlords keep revenue flowing even when renters fall behind. Lease guarantee products also help landlords approve renters who may not meet every traditional requirement but demonstrate other indicators of reliability, expanding the applicant pool without adding risk.
Benefit to Landlords
Maintaining consistent income is everything. Even a month or two of lost rent can throw off cash flow projections and interfere with paying bills or making capital improvements. This approach provides consistent rent collection even during periods of tenant delinquency. By protecting rental income, landlords can avoid tightening screening criteria so aggressively that vacancies rise.
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