Rental listing platform Zumper is giving investors an offer they can’t refuse: guaranteed rent payments. Dubbed the “Instarent Guarantee” program, the initiative ensures you get your full rent payment (even if your tenant fails to pay up) for at least the next 12 months.
Renter skipped out? No problem.
Need to evict someone? You’ll still get rent.
Did your tenant get deployed? You’re covered there, too.
The policy even covers you for property damage and fees associated with eviction, too. Sound too good to be true? Let’s look at the offer more closely.
How the rent guarantee program works
First, let’s start with the basics: What’s covered under the Instarent program? Most notably, Instarent guarantees landlords a full rent payment every month, even if your tenant skips payment or leaves the property early.
It also covers up to $300 in legal fees if you’re forced to evict someone and $500 in excessive property damage (though pet-related damages and normal wear and tear don’t qualify.)
Nothing comes for free, of course, and while you won’t have to pay a premium like you would with an insurance policy, there is a cost to using the Instarent program. Here’s what you need to do to participate:
- Sign up for the platform’s Instarent program, which lets potential tenants find your property, request tours, and apply for your unit instantly.
- Screen the potential renters using Zumper’s tools. You’ll get a background check and credit report for $30. Make sure you choose a tenant with at least a 650 credit score (this is critical to qualifying for the program).
- Sign and execute your lease agreements digitally using Zumper. It’s powered by DocuSign, so no need to worry about security.
- Use Zumper’s tools to collect rent each month. You’ll pay the platform 2% of those rents monthly.
If you do all four, you qualify for the program and have your rents guaranteed for all 12 months of the lease. Once you’re in, you’ll need to request a reimbursement from Zumper if a tenant fails to pay or you need cash for damage or eviction costs. This requires documentation and, in some cases, a copy of your insurance policy.
Other rent guarantee options
If all that seems like too high a price to pay, there are other rent guarantee options out there you might consider. Avail offers a rent guarantee program, and companies like Rent Rescue and One Rent do, too (though the latter is on pause due to COVID-19). A good landlord insurance policy can safeguard your rental income as well.