Life of Tenancy Improvements for our Security Deposit Replacement Product

Posted by: TheGuarantors on December 21, 2021

We’re excited to announce that we’ve been working on some major improvements to our Security Deposit Replacement product offering. If you’re interested in finding out more, read on! Let’s start from the beginning:

What is Security Deposit Replacement?

The aim of our security deposit replacement product is to modernize the way landlords and tenants deal with security deposits. Shifting away from the old way of paying the traditional deposit, renters can pay a small fee to cover any damages due to lost rent. For the landlord, this means you can fill vacancies faster, without compromising on protection or offering too many incentives. Renters pay a low one-time or monthly fee and eliminate the need for a security deposit while living in your community. It’s a win-win-win for everyone involved.

The Challenges

Our security deposit replacement has been very successful in helping property managers get more leases signed. One renter we spoke to recently said “I couldn't have dreamed of moving into a nice place like this before I knew about the security deposit replacement.” Despite the success, there was one problem left to solve: annual renewals of security deposit coverage. In fact, there is legislation in several local and state wide locations that makes such renewals cumbersome:

  • Pennsylvania-  1 in 3 states now have deposit limitation laws on the books. PA is one of them. The landlord or fee manager may take up to two months in deposit and/or rent, with the limitation being, one of those months must be returned in year two. Many landlords do not want to exceed one month in Renter Choice solutions’ premium. Our Life of Tenancy product will successfully meet this expectation, during a 24 months lease period.
  • California- Mandatory month to month renewal options make it hard for renters to understand the lifetime cost of a subscription product and hard for management companies to track who is maintaining coverage.
  • Atlanta- Renter’s Choice legislation gives renters the right to pay their security deposit in three monthly installments or through third-party rental security insurance.
  • Boston- Annual security deposit replacement renewals are considered lease fees.

The Life of Tenancy Update

We’re thrilled to announce that we’ve made our deposit replacement last as long as a resident lives in your community - they can even switch apartments within a community without paying a renewal fee! All Deposit Coverage provided by TheGuarantors moving forward will cover the tenant for the life of their tenancy. That’s right: no renewals, no having to worry about juggling local laws, and you can keep providing options to tenants. It’s the same great coverage with a better process. 

We’re rolling it out nationwide as quickly as we can. We are currently live in the following states:

  • Alabama
  • Arizona
  • Arkansas
  • Delaware
  • Florida 
  • Illinois
  • Indiana
  • Kansas
  • Massachusetts
  • Minnesota
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • Oklahoma
  • Oregon
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Utah
  • Virginia
  • West Virginia 
  • Wyoming

With the rest of the United States to follow in 2022. We hope you’re excited about the changes. We know your renters will be!

Interested in learning more about the changes or offering our products to your renters? Contact us!