Example: A prospective tenant with all income and credit qualifications wants to lease an apartment for $1,200/month. The prospective tenant has enough to pay the first month rent but not the $1,200 security deposit. The prospective tenant says they’ll come back once they save for the security deposit. As a result the apartment stays vacant until a more qualified tenant comes by.
This new service, a security deposit guarantee, allows the landlord to rent to the prospect and a guarantee will be provided by a third party, LeaseGuarantee. If the landlord chooses to pay for the LeaseGuarantee contract, the tenant can simply pay an additional amount with their rent each month to cover the guarantee cost. Alternatively, the landlord and opt to have the tenant pay for the LeaseGuarantee contract directly.
The contract amount is based off a calculation using the applicant’s credit and eviction history. Contracts start as low as $199 for a $1,000 contract with contracts going up to $10,000.
The guarantee stays in place until the lease is terminated or after the initial 12-month period, whichever comes first. The guarantee payments will not be refunded after the property is vacated, but any unpaid rent, late fees, damages, legal fees, and court costs will be by the guarantee.
American Apartment Owners Association offers discounts on products and services for all your property management needs. Find out more at www.joinaaoa.org.