Q and A
General
What is Lease Assurance?
Lease Assurance is poised to be the nation’s first affordable way to create equal access to housing. House Bill 3226 is a proposal to create a rental assurance program in Oregon. It will allow renters to pay for a rent guarantor product that would co-sign their lease agreement.
After it passes, we’ll be able to co-sign rental agreements for any renter who earns at least 2x the rent and pays a small fee to the landlord for the policy. When we co-sign, we guarantee payment to landlords up to 3x the rent amount for rental losses and damages. This assurance reduces landlord risk and increases the number of qualified applicants, so both sides can rent with confidence.
What is Lease Assurance?
Lease Assurance is poised to be the nation’s first affordable way to create equal
What is Lease Assurance?
Lease Assurance is poised to be the nation’s first affordable way to create equal access to housing. House Bill 3226 is a proposal to create a rental assurance program in Oregon. It will allow renters to pay for a rent guarantor product that would co-sign their lease agreement.
After it passes, we’ll be able to co-sign rental agreements for any renter who earns at least 2x the rent and pays a small fee to the landlord for the policy. When we co-sign, we guarantee payment to landlords up to 3x the rent amount for rental losses and damages. This assurance reduces landlord risk and increases the number of qualified applicants, so both sides can rent with confidence.
After it passes, we’ll be able to co-sign rental agreements for any renter who earns at least 2x the rent and pays a small fee to the landlord for the policy. When we co-sign, we guarantee payment to landlords up to 3x the rent amount for rental losses and damages. This assurance reduces landlord risk and increases the number of qualified applicants, so both sides can rent with confidence.
How long does it take to get approved for Lease Assurance?
It can take up to 24 hours, but most applications are approved instantly.
When does the coverage go into effect?
The day you take possession of the property is the day your coverage begins. Your covered until the day you vacate the unit, unless you've opted out of Lease Assurance at some point during your tenancy.
What exactly does Lease Assurance cover?
The landlord can submit a claim for up to 3x the rent when the renter moves out. Lease Assurance will pay the landlord for unpaid rent or utilities, damages above normal wear and tear, and any other real losses. "Real losses” are expenses a landlord has to pay out-of-pocket that a renter was contractually responsible for in the lease agreement.
We would not cover a lease break fee for moving out early, or a noncompliance fee for having a pet when not allowed. However we do cover the vacancy loss every day until the property is rented, as well as damage the pet caused, because those losses are considered real.
We would not cover a lease break fee for moving out early, or a noncompliance fee for having a pet when not allowed. However we do cover the vacancy loss every day until the property is rented, as well as damage the pet caused, because those losses are considered real.
What is the refund policy?
The Lease Assurance premium is nonrefundable unless it can be confirmed that the lease agreement was not signed and the move-in didn’t occur.
For Landlords
Why should a landlord use Lease Assurance after HOUSE BILL-3226 passes?
Lease Assurance is poised to be the first rental co-signer in Oregon. Not only are we helping shape the bill, we have a deep understanding of how it will work and benefit landlords. Our market-leading strategy and business model means we will help landlords fill units faster and provide protections that minimize risks. Our policy benefits include an easy application process and affordable premiums for renters, making us the clear choice for the renters that landlords need.
How will the Lease Assurance application process work for landlords?
We expect the Lease Assurance application process will be built into the background screening process. When a renter applies, their Lease Assurance application is automatic. If a renter doesn’t meet the regular criteria, landlords can see if they qualify with Lease Assurance as a co-signer. If they do, landlords can present the Lease Assurance premium options to the renter along with the results of their screening decision.
How much does Lease Assurance cost for landlords?
Nothing. The premium amount is paid by the renter to the landlord, and the landlord uses that money to pay Lease Assurance each month. Landlords will need to keep track of renters’ payments to make sure they go to the correct policies, but there is no cost to the landlord for a policy.
Why does Lease Assurance require landlords to have a cap on deposits?
We pride ourselves on giving renters the choice to choose between our product and paying a traditional deposit. If we didn't cap deposits, landlords could significantly raise deposits in an effort to force renters into choosing Lease Assurance because it comes with more coverage. That just wouldn't be fair.
How does Lease Assurance work with FAIR?
When a landlord approves an applicant under the conditions of them purchasing Lease Assurance, the applicant is considered "conditionally approved" not denied. FAIR's individual assessment no longer applies.
What is the maximum amount Lease Assurance will pay for a claim?
Lease assurance will pay up to 3x the rental amount.
For Renters
Why should a renter use Lease Assurance?
Lease Assurance can open doors to rentals that might otherwise be closed to a renter. There is no fee to apply, and as long as a renter has no criminal history and earns at least 2x the rent, they’ll be approved. We offer flexible payment options so renters can choose whether or not to pay 0, 25, 50, 75 or 100 percent of the deposit. Paying a higher deposit amount translates to a lower premium. Paying a lower or even no deposit means a slightly higher premium, but less upfront moving costs. Renters can decide which option works best for them. And, if the lease ends with money owed to the landlord, we’ll cover it.
Will every property a renter applies for accept Lease Assurance as a co-signer?
Yes, when House Bill 3226 passes, 100% of landlords in the state of Oregon would accept Lease Assurance as a co-signer. This means that as long as a renter doesn’t have a criminal history, they can apply for any property where they earn 2x the rent.
How much does Lease Assurance cost for renters?
The average monthly premium is about $50 per month. This is based on an average monthly rent of $1,000. The price can vary depending on a few things like background check and the payment option chosen. Renters will be able to choose a premium that fits their budget before they sign up.
When and where should a renter apply for Lease Assurance?
We expect the Lease Assurance application process will be built into the rental application process. Most landlords will show renters their Lease Assurance premium options at the same time as the results of their application. This means there’s no extra step for a renter to take! Simply find a property and apply for the unit.
Will applying for Lease Assurance affect a renter’s credit score?
No. The Lease Assurance background check won’t impact a renter’s credit score.
How does a renter pay the Lease Assurance premium?
Renters pay the premium to the landlord along with the monthly rent.
What happens when the lease expires and the renter wants to renew the lease?
When the lease expires, a renter may request to be screened to see if they’re eligible for the property without Lease Assurance. If they do qualify, they can choose to pay the deposit required by the landlord instead of the Lease Assurance premium. If they don’t qualify without Lease Assurance, they can renew their Lease Assurance coverage.
What are a renter’s lease obligations?
Renters are obligated to all the terms and conditions of the lease agreement. If a renter stops paying rent or the Lease Assurance premium, skips, is evicted, or breaks the lease, the landlord is covered for lost rent and damages up to 3x the rent amount. A claim against the Lease Assurance policy may affect the renter’s future premium amounts.
What happens if a renter has a roommate?
Applicants with roommates still qualify for Lease Assurance as long as the household earns at least 2x the rent. There is only a single premium for the unit.
What if a renter has a criminal history?
Lease Assurance can only guarantee approval for renters who earn 2x the rent and have no criminal history. Renters with a criminal record can ask for an individual assessment, but landlords may still deny their application.
Is there ever a time when Lease Assurance or the landlord will go after the renter for damages?
Yes, but it is extremely rare and would only happen in two circumstances. First, if a renter intentionally gave false information during the application process, this would be considered fraud. We will pay the landlord for their losses but then seek damages from the renter. Second, if the amount of debt to the landlord is greater than our maximum payout amount (3x the rent), the landlord has a right to go after the renter for the difference.