What is "rent coverage" or a rent guarantee in multifamily?

"Rent coverage" is a type of insurance for property operators.

This coverage protects landlords from financial losses due to:

• Missed rent payments: If a tenant defaults on their rent, the insurer will reimburse the landlord for the missed rent up to a specified amount to lock in and de-risk property cash flows.

  
  

• Property damage: While not the primary focus, rent coverage also includes protection against certain types of property damage caused by the tenant.  

Essentially, it's a form of insurance that safeguards property owners from tenant-related financial risks and protects their rental income.

TheGuarantors and SingleKey are two of the leading providers for this "rent guarantee" product.