The hidden risks of personal guarantors: The shift toward institutional protection

Today’s renter is less likely than ever to have a traditional income stream, which creates challenges on both sides of a rental agreement. Whether potential renters have credit challenges, earn a living through self-employment or freelancing, or rely on non-W2 income that doesn’t fit nicely into biweekly paychecks, many find it harder to get approved for a place they can easily afford. Meanwhile, landlords have to balance guaranteeing consistent rental income with filling units. Though multifamily owner-operators have traditionally used personal guarantors as a risk-mitigation tool, the result often includes inefficiencies and costs that operators aren’t calculating. The Real Deal […] This article originally appeared on The Real Deal. Click here to read the full story.