Cosign Makes Waves in Omaha's Rental Market Amid High Vacancy Rates

Cosign's Impact on Omaha's Rental Landscape

In a significant move for both tenants and property owners, Cosign has launched its third-party lease guarantor platform in Omaha. This initiative comes at a time when the rental market is experiencing notable vacancy challenges, breaking historical norms due to the recent surge in available apartments. The city's current multifamily vacancy rate has hit 9.1%, a stark increase compared to the market's five-year average of 6.7% and the ten-year average of 6.5%. This upward trend in vacancy illustrates the ongoing competition between property owners to fill their units, causing many to rethink their traditional leasing strategies.

Understanding the Market Dynamics

According to data from CoStar, the city witnessed the delivery of 3,615 new units within just the last twelve months. This substantial influx is part of a broader trend seen in 2025, where record-high quarterly deliveries were reported. However, as the construction pipeline cools with only 2,905 units under construction at present, a continued increase in the vacancy rate is anticipated, expected to reach 9.8% by the end of 2026.

As the availability of rental units surges, rent growth has simultaneously softened. While asking rents experienced a modest yearly growth of 1.2%, the effective rents — the actual amounts tenants pay after potential concessions — only rose by 0.6%. This trend indicates that landlords are more frequently resorting to incentives to attract tenants, acknowledging the challenges posed by a softened rental market.

Addressing Rental Qualification Barriers

A key concern for many apartment seekers today is the rigorous qualification standards that can sometimes inhibit access to housing. National statistics indicate that over 40% of renters are turned away from their ideal apartments because they do not meet stringent criteria, despite their financial capability to pay.

In light of this, several property management firms, like Momentum Communities, have turned to Cosign as a solution. The platform steps in as a reliable cosigner alternative for renters who may not meet traditional qualifications. By acting as a third-party guarantor, Cosign enables property owners to increase their approval rates for potential tenants, leading to reduced vacancy rates and enhanced occupancy for their properties.

Amanda Torres, president of Momentum Communities, highlighted the value that Cosign brings to her leasing operations: “We’re constantly striving to eliminate unnecessary barriers while upholding responsible leasing practices. With Cosign’s support, we can confidently approve qualified applicants who may not fully satisfy traditional screening benchmarks and lack a cosigner.” This partnership has proven beneficial, enabling smoother leasing processes and greater opportunities for potential residents.

A Fresh Approach to Underwriting

Cosign was founded by seasoned real estate professionals who recognized the need for a more flexible and inclusive approach in the rental market. Their unique underwriting model focuses on evaluating payment behaviors and recency rather than fixating solely on credit scores. This innovative strategy addresses the mismatch between rental supply and demand, particularly in a competitive landscape where property owners are keen to adapt to changing times and tenant needs.

Zach Schofel, co-founder and CEO of Cosign, emphasized the current challenges faced by landlords: “Omaha owners are encountering a higher vacancy rate than usual, which could lead to one of two responses: either deeper concessions or smarter approval processes. We prefer to empower owners to accept good renters rather than let a unit remain empty due to a minor issue.”

Conclusion

Cosign's introduction to Omaha represents a proactive step in mitigating the challenges of a high vacancy environment. With their innovative approach to lease guarantorship, they are set to revolutionize how landlords and renters engage. As the market continues to adapt, Cosign's role may be pivotal in creating a more accessible rental landscape, ensuring that both property owners and renters can achieve their goals amidst ongoing changes.