Rental Loan Options Are Available: Is Taking Out an Apartment Loan Right for You?

If I had a dollar for every time a recent college grad spoke or showed photos of their luxurious apartment rental…

At my large company, which offers solid wages to new college graduates, most of their paychecks often end up going directly into the pockets of their new landlord instead of savings for future expenses such as children, home downpayment, or retirement savings accounts – something which can be truly heartbreaking.

Apartment rent is on the rise due to millennials moving into urban centers that they view as desirable in order to be “close to the action”, such as proximity to bars they want to frequent with their friends or amenities that they deem essential. This leads to fear of missing out (FOMO) driving up rent costs since landlords can charge more because people are willing to pay – can you blame them?

Renters face high monthly rent costs that have forced many lenders to offer apartment loans – much like an opportunistic bird of prey swooping down on roadkill.

This link to a Wall Street Journal article showcases an example of an upscale apartment manager operating both in Atlanta and L.A.

StayTony hopes their renter loans will resonate with recent college graduates. Through Uplift, StayTony provides loans of up to $15,000 that carry no interest for six months with an annual interest rate between 15-17% thereafter.

Though the article makes the case that rental loan offerings like these can help protect renters from more dangerous loan operations like payday lending (with its 700% APR’s), that argument would be comparable to saying e-cigarettes will keep children away from smoking; perhaps? but for their health it would have been far preferable not exposing themselves at all to either harmful product.