Lease insurance — what exactly is it?
In the multifamily property industry, lease insurance is a completely new InsurTech product designed to totally eliminate costly cash deposits which are burdensome for both tenants and property managers. LeaseSurance deploys lease insurance through its Deposit Free Platform and is designed to replace cash deposits with seamless insurance technology and provide property managers with enhanced protection on every single lease.
How Does Lease Insurance Work?
Instead of paying a costly upfront deposit when moving in, tenants pay a small monthly deposit waiver fee along with their rent. In turn, the property is protected against missed rent and damages with customized protection.
One of the defining features of lease insurance is that it’s the only product designed to protect the property owner — meaning properties gain remarkably more protection than they would with a traditional cash deposit, which significantly reduces bad debt and improves the bottom line!
Top Benefits of Lease Insurance
Lease insurance offers several key benefits, including:
- Superior protection
- Tenant affordability
- Built-in lease integration
- Improved reputation
1) Stronger Protection Against Unexpected Events and Market Cycles
Remember Covid-19 – what is the next surprising event to create uncertainty for property managers? When is the next sudden market down-turn?
Luckily, lease insurance is the answer to many property managers’ financial concerns. Built on a sustainable model, lease insurance reduces operational risk and provides customized insurance protection against rent loss and damages, on every lease.
Compared to cash deposits, lease insurance offers up to 5x more protection against rent loss and damages. This protects property managers and asset owners from economic uncertainty.
2) Affordable Move-Ins Drive More Traffic and Higher Conversion Rates
Tenant affordability remains a key issue, especially since the pandemic. Tenants are strapped for cash, and many cannot afford a cash deposit. As more tenants search for affordable living options, cash deposits are no longer a viable option. Lease insurance, however, eliminates cash deposits entirely, meaning properties can attract more prospective tenants, accelerate move-ins, and increase conversion rates.
Lease insurance gives property managers a strong advantage when it comes to competing for prospects, knowing properties are protected against rent loss and damages, on every lease!
3) Advanced Technology Integration Delivers Results Through Automation
The pandemic accelerated technological change, and with that, automation and integration have emerged as top priorities for property managers. Leasing operations have shifted online, and in response, property managers are looking for ways to streamline their processes, not add additional steps.
From move-in to move-out, our lease insurance software is natively embedded in the leasing process; from lease execution to monthly billing and accounting to receivables and automated claims, and to property performance metrics. This enables property managers to eliminate deposits portfolio-wide and drive net operating income—without any additional work for onsite teams.
4) More Positive Tenant Reviews
Another advantage of lease insurance has to do with the tenants’ experience and the property managers’ reputation.
When tenants don’t have to worry about cash deposit deductions and refunds, they are more likely to write positive reviews. These reviews often emphasize the affordability of a deposit-free move-in, as well as the ease of the move-out experience.
All in all, lease insurance helps improve the tenants’ experience which can translate into a more favourable reputation for the property manager!
