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 the guarantee will be paid by a third party. The tenant will simply pay an additional amount with their rent each month to cover the guarantee cost.
The guarantee cost is equal to the first months rent plus a 15% administration fee paid equally over 12 payments. In our example, that is $115 each month added to the rent for 12 months. The total monthly payments would be $1,315.
After 12 monthly payments, the guarantee cost is paid and the tenants monthly payments will be reduced back to $1,200. The guarantee stays in place until the lease is terminated. The guarantee payments will not be refunded after the property is vacated, but any damages caused will be covered by the guarantee up to the first month’s rent amount.
This service is currently provided by WWW.JACKANDLANDLORDS.COM
American Apartment Owners Association offers discounts on products and services for all your property management needs. Find out more at www.joinaaoa.org.