Security Deposit
Insurance
Security Deposit Insurance
Many in the rental industry are not aware of this option or may currently have this option but do not know the full benefits that this product can offer. The tenant has the option to pay a large up front security deposit or choose the small additional monthly fee of the security deposit alternative if it is available.
Highlights
- Covers the landlord if tenant does not pay their bill.
- Landlord can offer “no security deposit required” instead of free rent
- Attract more renters
- Lower move in cost
- Can move towards no need for security deposits
- Let the carrier do your collections
- Fast sign up, policy is given for renter on the spot
- Tenant can change to SDI mid lease or to prorated security deposit mid lease
- Approved claims funds wired to Property Manager’s account in as little as 48hrs.
- Earn up to $7mo per door in additional admin fees. (ex. $7 x 1000doors = $7k mo)
- Can be eligible for added profit sharing revenue stream!! (Call us to find out how)
SDI Overview:
Security Deposit Insurance can be a tactical alternative to Security Deposits. Recent legislation outlining this alternative has been sweeping across the country state by state. In Texas, SB 1783 passed 9/01/2021. It outlines the option of “fee in lieu of Security Deposit…be used to purchase insurance coverage for damage and charges for which tenant is legally liable”. This has paved the way for TX Prop Code 92.111.
In simpler terms it gives the tenant an option to pay a small, non-refundable, monthly fee instead of coming up with one large deposit up front. Thus, removing one barrier to entry. Keeping track of security deposit escrow accounts, refunds, and paperwork takes valuable administrative resources. These resources can be measured in terms of time and money. These are times where occupany is down and rents and obstacles to entry are up. This option offers a strategic way to navigate the changing times and increase your revenue in the process.
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Have any questions? We are always open to talk about your business and how we can assist you.