Apartment owners and operators are saying goodbye to security deposits, and LeaseLock is emerging as a sustainable, viable alternative
Through January 2020, LeaseLock Zero Deposit insured leases totaling $200 million in value. That represents a 100% increase from launch in Q3 2019 and significant acceleration within the multifamily industry to fully eliminate security deposits. The momentum is being reinforced by recent legislation designed to address affordability issues in rental housing and remove financial barriers for renters.
LeaseLock is the only provider of a nationwide A-rated lease insurance program that totally eliminates security deposits, surety bonds and guarantors in rental housing. Its National Multifamily Housing Council (NMHC) Top 50 enterprise clients include Greystar, Pinnacle, Avenue5 Residential, Bell Partners and First Communities. LeaseLock is launching an average of two new properties per day, doubling the rate from Q4 2019, which puts the company on a current pace to eliminate deposits across more than 160,000 apartment homes by the end of the year.
The rapid growth and market adoption of LeaseLock Zero Deposit comes at a time when local and state governments are implementing laws designed to decrease the financial burden that large security deposits pose to renters. Cincinnati recently became the first U.S. city to require properties to accept alternatives to a deposit, including payment plans and insurance. New York also just passed their own measure limiting the amount of a deposit while legislation is in various stages of approval in Virginia, Connecticut, North Carolina, Alabama and New Hampshire.
“It seems clear that more jurisdictions will be addressing the burden security deposits place on residents,” said Reichen Kuhl, co-founder and CEO of LeaseLock. “At LeaseLock, we’ve been ahead of the curve in addressing this housing affordability issue. Apartment owners and operators are turning to LeaseLock because it is an effective replacement for deposits and all the problems they cause. As more lawmakers mandate deposit alternatives, LeaseLock is emerging as the most viable, sustainable replacement for security deposits.”
Instead of paying a deposit, surety bond or guarantor, LeaseLock Zero Deposit allows residents to pay an affordable monthly deposit waiver fee along with rent that generates over $5,000 in coverage on every lease for the property. Residents don’t have to have as money upfront properties increase occupancy, reduce bad debt, and eliminate deposit administration and liability.
LeaseLock Zero Deposit is fully automated within the native leasing workflow—from move-in to move-out. Unlike surety bonds and rent guarantees that require leasing agents to direct residents to third-party websites and apps, LeaseLock instantly covers all leases with $5,000 lease insurance protection without any separate registration, application, or billing process.
“LeaseLock was designed in partnership with our clients as a long-term solution to finally move the entire industry away deposits and surety bonds,” said Derek Merrill, co-founder and COO of LeaseLock. “Residents love the fast, automated, and affordable move-in experience without any deposit or guarantor requirement. Properties in turn, get enhanced protection which leads to roughly 50% reduction in bad debt per property.”
Headquartered in Marina Del Rey, CA, LeaseLock is integrated with all major property management software systems, including Yardi, RealPage and Entrata. The resident leasing experience is seamless and completely native—requiring no change in process for on-site teams. LeaseLock is the first and only nationwide lease insurance program, rolling out more than 1 million rental units across the NMHC Top 50.
LeaseLock has insured over $200 million in leases and is backed by insurance rated A (Excellent) by A.M. Best. LeaseLock secured $10 million in Series A financing from leading insurance and real estate technology venture funds including, Liberty Mutual Strategic Ventures, American Family Ventures, Wildcat Venture Partners and Moderne Ventures.
