The new Deposit Saver Program involves a unique new program
backed by a large national insurance carrier that provides coverage for owners and property managers in the event of loss for resident damage to the property. It also protects against loss of income in case a resident vacates without paying last months rent. This takes the place of the need rental owners to have to require a security deposit from residents. Most rental owners only collect enough deposit to cover them against damage or one months rent. This program covers both! The new Deposit Saver Program offers a monthly low-cost alternative to security deposits. Instead of paying a large deposit at move-in, the rental resident pays a monthly fee that covers the insurance premium. The coverage premium typically ranges from as low as $10 to $30 a month, which can be reduced each year based on a good performance record.
If you are wondering whether residents will support this idea, the Deposit Saver Program was actually started by a group of renters who were tired of coming up with large security deposits whenever they moved. The two major benefits of this new program that replaces traditional or old-fashioned security deposits are economic.
- It reduces that amount of money needed to move into a new home thereby enabling residents to qualify for a wider selection of available homes or apartments.
- It allows residents to use the money they would normally give for deposit for other things (like U-Haul truck, or new curtains).
The minimal monthly fee charged by the Deposit Saver program is also more in keeping with options offered to consumers in other industries and is similar to other pay-as-you-go programs. If you, the landlord, are participating in the Deposit Saver program, you can now offer applicants the option of paying the old-fashioned
security deposit of so much money upfront or give them the option of a minimal monthly fee.
If the resident chooses the Deposit Saver alternative option, the landlord will be able to fax or simply enter a renters information and submit it on-line. After submitting information, a Deposit Saver Program representative will fax back a rate quote for that unit and renter.
If the renter agrees to the quote, all that renter has to do is provide a checking account or credit card number and their rental is covered. It is that simple.
In addition to all the benefits previously stated about the Deposit Saver program, perhaps the biggest benefit is that it has an incentive payback, a way to actually increase your cash flow, not just cover against losses. Unlike the hassles and costs associated with the standard security deposits, this insurance alternative actually pays a percentage of its profits back to the landlord or management company prorated for claims performance with two-year vesting. So, instead of losing time and/or money managing a collection of deposit accounts, the landlord or management company can reduce expenses and actually generate additional income with this program. No or little claims, meaning the residents leave the property undamaged and in good rent standing, can result in money back to the owner. The owner could even offer to pass some of the cash-back to current or vacating renters with a good performance track record. And, should the owner have to file a claim to recover unpaid rent or damages, settlement is handled within a matter of days, not weeks.
For rental owners to participate in the program, simply click below to fill out a landlords for managers request for information form. There is a nominal sign-up/starter fee depending on the number of units you wish to participate in the program. Once the request is submitted, you will receive a follow-up call from a representative of Deposit Saver If your current residents want to switch to this program, they can also get their deposit refunded back to them (nice incentive to switch). If you have additional questions, please click below to read answers to FREQUENTLY ASKED QUESTIONS.
