WHEN COMBINED WITH RENT COVERAGE, LANDLORDS CREATE A BUFFER AGAINST UNPAID RENT, PROPERTY DAMAGE, AND LEGAL COSTS.
CHALLENGE #2: HIGHER OPERATING COSTS
THE ISSUE
Operating costs are escalating faster than rent growth in many areas. According to Gallagher’s Spring 2025 Real Estate and Hospitality Market Update, insurance premiums are seeing rate increases from high single digits to 15 percent or more. Insurers are also reducing the limits they are willing to offer, dropping from $25 million to as low as $5 million, which forces landlords to buy coverage from multiple providers at higher overall cost. Property taxes and utilities add to the strain. The U.S. Energy Information Administration projects residential electricity rates will climb by as much as 18 percent in the next few years, while the annual inflation rate sits at 2.7 percent. Even one unplanned expense, like rental damage that exceeds the security deposit or legal fees from an eviction, can quickly offset profits.
ELECTRICITY RATES will climb by as much as 18%
15%
INSURANCE PREMIUMS are increasing up to
How TheGuarantors Helps
TheGuarantors’ Deposit Coverage gives landlords financial protection equal to or greater than a full security deposit, even in states like California where security deposits are capped at one month’s rent for most landlords. When combined with Rent Coverage, landlords create a buffer against unpaid rent, property damage, and legal costs. Because renters pay TheGuarantors directly, these protections do not increase operating expenses for landlords.
Benefit to Landlords
This strategy offers stronger safeguards against rising costs and unexpected losses. Landlords can preserve their income without passing every cost increase on to renters, which helps retain residents and maintain competitiveness in tight markets.
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