Why lease coverage matters in student housing

Leasing to students comes with unique risks—and even greater opportunity.

Operators who manage student housing know the challenges all too well: first-time renters with no credit, international students without U.S. co-signers, and the annual churn of lease breaks, no-shows, and unpaid rent at the end of the semester.

It’s a fast-moving, high-stakes environment where every bed counts. Yet in this high-demand, high-risk segment, the tools that work for traditional multifamily often fall short.

That’s why many operators are now turning to lease coverage solutions to reduce student renter risk without sacrificing lease velocity or occupancy. And for forward-thinking teams, Cosign is quickly becoming the preferred tool to do it.

What makes student housing riskier than traditional multifamily

Let’s start with the obvious: most student renters don’t look great on paper.

• No job history
• No U.S. credit
• Limited or no rental history
• Reliance on parents or financial aid
• Income often arrives in lump sums or is tied to unpredictable schedules
  
  

Add to that the fact that students frequently:

• Skip final rent payments
• Leave early for internships or travel
• Drop out mid-semester
• Fail to communicate clearly about life changes

And if you're an operator, you're left with unpaid balances, empty beds, and dozens of micro-losses that add up to a major NOI hit over time.

The traditional fix? Require a parental guarantor.

But that’s not always reliable—especially in cases where:

• The student is international
• The parent refuses or can’t meet underwriting criteria
• You're unable to verify documentation in time
• The renter doesn't feel comfortable asking a family member to co-sign
  
  

And even when you do get a personal guarantor, good luck collecting if the lease is broken or the student disappears after finals.

This is where lease coverage comes in.

What is lease coverage—and how is Cosign different

Lease coverage is a way for renters who don’t meet your standard approval criteria to still lease a unit—with a third-party stepping in to back the lease financially.

Here’s how Cosign works in student housing:

1. You follow your normal application process.
2. A student doesn't meet your credit or income criteria.
3. Instead of rejecting them or requiring a parental co-signer, you refer them to Cosign.
4. If approved, Cosign offers lease coverage—paid for by the student.
5. If they skip, default, or break their lease, Cosign pays you directly.
   
   

What makes Cosign different from other solutions?

• It’s built for landlords. You get rent protection, but also speed, control, and zero operational friction.
• It’s fast. Underwriting decisions usually take under 24 hours.
• It’s flexible. Cosign offers 3x, 6x, 9x, or 12x rent coverage.
• It’s renter-friendly. Students pay a one-time fee—often less than a security deposit or prepaid rent.
• It’s revenue-positive. Cosign shares 10% of all revenue with operators.

And most importantly, it helps you fill beds faster, reduce delinquency, and keep leasing teams focused on move-ins—not chasing down unpaid rent.

Why lease coverage is especially valuable in student housing

Let’s take a closer look at four major pain points in student leasing—and how lease coverage helps address them:

1. No credit, no income, no co-signer

This is the most common blocker. A student may have savings, financial aid, or a stipend—but no way to pass your screening. With Cosign, you don’t have to make exceptions. You refer them to coverage and get the lease protected.

• Use case: A 21-year-old international grad student with a full scholarship, no U.S. credit, and no co-signer. With Cosign, they can still lease—and you still get protected.

2. Lease skips at semester end

Students often skip the final rent payment or leave early in May. If you’re relying on a personal guarantor to recover those losses, you may never see that money. With Cosign, you file a claim and get reimbursed within 5 business days.

• Use case: A student lands a summer internship in another state and leaves 6 weeks early without notice. You file a claim and recover the lost rent.

3. No-shows and overleasing

You pre-lease beds aggressively, only to find out in August that a handful of students never show up. Now your team is scrambling to backfill. Cosign helps cover the financial gap when no-shows turn into real losses.

• Use case: One operator had four empty units in September due to international travel delays. Each student was covered by Cosign, and the operator recouped the missed rent.

4. Slower leasing due to manual co-signer collection

Chasing down signatures from parents, verifying financials, following up on missing paperwork—it all slows the leasing cycle. With Cosign, the student completes everything online. No back-and-forth. No paperwork delays.

How lease coverage boosts operational performance

Operators who use Cosign in student housing report benefits beyond just default protection:

• Shorter lease-up cycles
• Higher approval rates
• More inclusive applicant pools
• Better leasing team efficiency
• Higher NOI thanks to reduced bad debt and vacancies

And unlike traditional rent insurance or co-signer models, Cosign is designed to fit into your workflow—not slow it down.

What about security deposits

Many student housing operators are moving away from traditional deposits, especially in competitive markets where affordability matters. Cosign’s coverage model can complement deposit alternatives, giving students a lower cost to move in while keeping owners protected.

It also creates a consistent, portfolio-wide protection layer that’s easier to underwrite, easier to scale, and easier to present to investors or asset managers evaluating long-term value.

Students deserve access and Owners deserve protection

Student housing is fast-paced, full of edge cases, and built around a renter population that doesn’t always fit traditional models.

Lease coverage isn’t just a workaround—it’s a modern leasing solution that gives students access to great housing while ensuring owners get paid and protected.

With Cosign, operators aren’t forced to choose between high standards and full occupancy. They get both.

And when the next lease cycle rolls around, that’s one less headache on your list.