Lease coverage strategies that boost occupancy and protect revenue

Across major U.S. cities, one of the biggest challenges facing multifamily owners isn’t a lack of demand—it’s the growing gap between income and rent.

In New York, for instance, average studio rent has risen to over $3,200. Under the standard 40x income rule, applicants now need to earn $128,000 annually just to qualify. And in cities like Boston, Seattle, and Miami, similar spikes are pricing out an increasing number of qualified renters.

What does that mean for property owners? Fewer approved applicants. Higher denial rates. And longer periods of vacancy.

But rather than loosening requirements and increasing risk, more operators are turning to lease coverage solutions that let them approve more renters while still protecting their rent roll. At the forefront of this shift is Cosign—a flexible, landlord-aligned platform designed to help properties convert renters who fall outside traditional approval standards into reliable residents.

Let’s take a closer look at how Cosign works, why it’s different, and how it’s helping institutional landlords and operators unlock more revenue while reducing risk.

The problem: shrinking renter pools and rising denial rates

The math is simple. If rents grow faster than wages, fewer people qualify under standard approval criteria.

And the data backs it up. In the past two years:

• Average national rent has grown by nearly 16%
• Wage growth has lagged far behind at just 4%
• In high-cost markets, denial rates have jumped from ~30% to over 60% for some operators

The result? Properties sit vacant longer, marketing efficiency declines, and leasing teams spend more time chasing leads that don’t convert.

Operators are stuck between two tough options: approve higher-risk renters, or lose money to vacancy and turnover. Neither option is ideal.

The solution: Cosign’s lease coverage platform

Cosign offers a third path—one that expands your pool of qualified renters without increasing exposure to risk or bad debt.

Cosign acts as a modern lease coverage provider. When an applicant doesn’t meet income or credit requirements, they can apply through Cosign. If approved, Cosign steps in to cover the lease, protecting the landlord from missed rent and default.

Unlike traditional guarantors or insurance options, Cosign was designed specifically for multifamily operators, with features that align directly with your NOI goals:

• Fast claims: Rent claims are paid within 5 business days
• Flexible coverage: Choose between 3x, 6x, 9x, or 12x rent options
• Zero cost to landlords: Applicants pay the fee
• Easy onboarding: No integrations, no site inspections, no slow approvals
  
  

Cosign isn’t just helping renters get approved—it’s helping owners stabilize income, boost occupancy, and convert more applicants without more marketing.

Real-world impact: what happens when you expand your funnel

Let’s say your denial rate is 40%. If even 20% of those denied applicants are converted through Cosign, you’ve just added 8% to your occupancy rate.

In a 250-unit building, that’s the equivalent of 20 additional rented units per year.

And the math gets even better:

• Rent = $2,000/month
• 20 extra units = $40,000/month in added income
• $480,000/year in additional revenue
• All while maintaining your screening criteria and minimizing default risk
  
  

This is how Cosign helps you grow your portfolio without compromising standards or increasing leasing overhead.

Why now?

Operators today are under pressure from every angle:

• Higher marketing costs to generate leads
• More fraud in the application process
• Greater scrutiny from investors on occupancy and rent roll quality
• More volatility from job loss, credit dips, and income uncertainty

Lease coverage doesn’t just protect your property—it makes your business more resilient.

And with Cosign, you can implement it without overhauling your leasing process. The platform is designed to be lightweight, fast, and renter-friendly—giving you instant access to a larger, protected renter pool.

How Cosign works

Here’s what the process looks like for operators:

1. Renter doesn’t qualify under your standard income or credit policy
2. You refer them to Cosign through a simple online portal
3. Cosign underwrites the renter, typically within 24 hours
4. If approved, the renter selects a coverage plan and pays the fee
5. You sign the lease as usual, with Cosign guaranteeing coverage behind the scenes
   
   

And in the event of a default, you file a claim and receive compensation within 5 business days. There’s no lengthy arbitration process. No confusing insurance forms. Just guaranteed income.

Renters love it too

For renters who don’t have access to a traditional guarantor—or who simply want to qualify on their own—Cosign is a game-changer.

Applicants who might otherwise be stuck in subpar housing can now qualify for a professionally managed property. They get access to quality rentals, and you get income protection and a qualified resident.

Cosign makes it easier for:

• First-time renters
• Students or foreign nationals
• Freelancers and gig workers
• Renters with limited or non-traditional credit history
  
  

It’s a win-win: renters get better homes, and you get stronger occupancy and reduced leasing friction.

How Cosign compares

While other options exist in the market, most were built with renters or insurance carriers in mind—not operators.

Cosign is different:

• It was born inside a real estate company (Eastman Residential) and shaped by firsthand operational pain
• It was created to help landlords facing high denial rates in workforce housing
• It’s backed by major investors, including Mark Cuban and landlords with 50K+ units

And it’s growing fast, thanks to a model that aligns incentives across the board.

Final thoughts

In today’s environment, being able to approve more renters without sacrificing your rent roll is a competitive advantage.

Cosign gives you the tools to do exactly that.

• No upfront cost
• No operational drag
• Just more leases, better income protection, and a smarter way to scale occupancy

If you’re seeing applicant quality decline or your denial rates rise, lease coverage could be your most valuable lever.

Visit rentwithcosign.com to learn how you can unlock more revenue, boost occupancy, and protect your portfolio with a platform built for landlords—by landlords.