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.
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.
- 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).
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.