Landlord Quick Tip #272
Tip #272: Security Deposits Made Better
Starting immediately, a security deposit is no longer needed to ensure against property damages. Tenants can use that cash for move-in costs or for anything else they need.
This new program is sure to help both landlords and tenants.
Traditionally, landlords require first and last month’s rent, plus a security deposit when a new tenant moves in. This puts a financial strain on prospective tenants, and may lead to either a lease not being signed or the rent not being paid.
To help alleviate this problem, the company Jack and Landlords contracts with the property landlord to guarantee payment on a loss of rent or property damage. The tenant just pays the guarantee cost on top of rent.
The guarantee price is the first month’s rent, plus a 15% administration fee, paid over 12 months. The tenant saves money and the landlord is still protected: it’s win-win for everyone!
Just what makes this program so beneficial to landlords?
Not requiring a security deposit means that your properties attract more traffic, which ultimately means more leases signed.
It’s a cash-saving alternative not offered by your competitors. Tenants are much more likely to move in if they’re saving money up front.
It removes the initial financial burden from your tenant, which means a lower vacancy rate.
Your properties get to full occupancy more quickly, which in turn allows for a higher rent.
Your property builds a positive name in the community for making housing available to more clients.
Visit Jack and Landlords to find out more about this cost-saving program.
See last week’s Landlord Quick Tip.
American Apartment Owners Association offers discounts on products and services for all your property management needs. Find out more at www.joinaaoa.org.
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