Young renters turn to private guarantor services like Insurent and theGuarantors as landlords tighten requirements in America’s priciest city
By Hannah Russo, Senior Correspondent
In a sign of the times in New York City’s relentless rental market, a rising number of apartment seekers are turning to third-party guarantor services to secure leases they otherwise wouldn’t qualify for.
Companies like Insurent and theGuarantors are stepping in to co-sign leases on behalf of renters who fall short of landlords’ financial requirements. In return, these companies charge a one-time fee—typically equivalent to one month’s rent—offering landlords a safety net and opening doors for applicants with unconventional financial profiles.
As rental prices continue to soar and demand remains sky-high, these guarantor services are not only gaining traction in New York City but also expanding into other major U.S. metros, fueling a growing industry projected to hit $775 million in global revenue in 2025 and nearly double to $1.53 billion by 2032, according to market analysts.
A Lifeline for Non-Traditional Renters
With average Manhattan rents climbing above $4,200 per month and landlords frequently requiring tenants to earn 40 to 45 times the monthly rent, many applicants—especially freelancers, international students, retirees, and recent graduates—are left without viable options.
“This is a game changer,” said Samantha Ortiz, a 27-year-old freelance graphic designer who recently secured a studio in Williamsburg using Insurent. “I make good money, but it fluctuates every month. No traditional landlord would accept my application on its own.”
Ortiz paid a guarantor fee equal to 80% of one month’s rent, which she considered “steep but worth it” for securing a safe, centrally located home.
Companies like Insurent vet applicants based on alternative metrics such as assets, contract income, and international credit reports. If approved, they offer landlords a guarantee that rent will be paid—even in cases of default.
How It Works
These guarantors act similarly to co-signers but without the personal ties. Once a renter is approved:
The guarantor charges a one-time fee ranging from 50% to 110% of one month’s rent.
The service guarantees the lease, stepping in to cover missed payments.
Renters remain legally responsible for repaying any defaulted rent covered by the guarantor.
“It’s a win-win,” said David Margalit, Chief Operating Officer at theGuarantors. “Landlords gain peace of mind and broader applicant pools. Renters gain access to homes they’d otherwise miss out on.”
Margalit noted that his company has grown 300% year-over-year in the NYC market and has expanded to Los Angeles, San Francisco, Boston, and Miami.
Landlords Embrace the Trend
Property managers are increasingly open to third-party guarantees, seeing them as a way to reduce vacancy rates and minimize risk.
“Rather than turn away good applicants with freelance income or international credit, we can accept them with the backing of a professional guarantor,” said Elena Grant, leasing director at a major Midtown rental firm. “We’ve been using Insurent for over five years—it’s helped us fill units quickly without sacrificing quality.”
Landlords typically face no cost when working with guarantor companies, making the service even more attractive amid New York’s highly competitive housing landscape.
Critics Say It’s a Symptom, Not a Solution
Despite its growing popularity, some housing advocates argue that third-party guarantor services are a symptom of deeper systemic problems—namely, a lack of affordable housing and overly stringent qualification criteria.
“People shouldn’t have to pay $3,000 or more just to prove they’re worthy of shelter,” said Aisha Tilden, policy director at the Housing Justice Initiative. “While these companies offer a short-term fix, they further commodify access to housing.”
Tilden called for more robust government intervention, such as expanded rental subsidies, inclusionary zoning, and the revival of public housing investments.
Growth Shows No Signs of Slowing
Market analysts suggest the rent guarantor industry is just getting started. According to a 2024 report from PropTech Insights, the number of renters using third-party guarantors in the U.S. increased by 46% from 2022 to 2024, with New York accounting for nearly 40% of that growth.
The same report projects:
$775 million in global revenue for 2025
$1.53 billion projected by 2032
Expansion into secondary U.S. cities like Austin, Denver, and Charlotte
Emerging applications for corporate housing and co-living models
“As housing markets become more complex, we expect renters to increasingly seek support navigating requirements,” said Dr. Lena Cho, a real estate economist at Urban Data Lab.
Who Benefits Most?
Guarantor services primarily attract:
Gig workers and freelancers: Those without traditional pay stubs but with consistent income.
Recent college graduates: Especially those without family members who can act as co-signers.
International students and workers: Those with assets but no U.S. credit history.
Retirees: With savings or investment income but no active salary.
For these groups, third-party guarantors offer a viable path into rental markets that have historically excluded them.
A Growing Necessity or Added Barrier?
While the debate continues, most stakeholders agree that rent guarantors are becoming a normalized feature of the American rental experience—particularly in cities like New York, where competition is fierce, and landlords are cautious.
“Ultimately, our mission is to bring fairness and accessibility to the leasing process,” said Margalit. “And we’re just getting started.”
