03-05-18 Security deposits are so yesterday?
Whether you have a big portfolio or own one of the estimated 19 million single family houses in the US that is occupied by renters there is always a danger to that mailbox money not showing up in the first week of the month.
That's part of what the security deposit is for right? Would you sleep better at night if you had an additional method of protection? Could you trust this protection to the point that you don't even require a security deposit any longer?
Time will tell how a new insurance product introduced by the American Apartment Owners Association (AAOA) named LeaseGuarantee will answer those questions and potentially change the landlord/tenant landscape in the future.
A review of how it works looks like this:
- 1Screen a New Tenant with AAOA
- 2Select your yearly coverage between $2,500 and $10,000
- 3Decide whether you are going to pay the premium or whether you are going to pass it onto your tenant
- 4Sleep easy at night knowing you have protection in place; or added protection, as the case may be
Tenants go through an application process which appears to rely heavily on credit scores. Only one of the tenants needs to qualify if they are applying jointly.
In order to collect on the policy you'll need to go to court and get a judgement against everyone who signed the lease.
Seems like a good product and AAOA certainly is a solid organization so might be worth checking out if you have any tenants you are concerned about.
Are you looking to add to your rental portfolio? Have some equity locked up in various properties you'd like to take advantage of? Give me a call and we can discuss how you can cross collateralize your existing properties for new purchases. 1-833-FUNDYES