The push to move past the traditional security deposit is about to take a step forward thanks to a new product that lets renters pay a monthly fee instead of providing a month’s worth of rent upfront.
LeaseLock Insurance Services is partnering with Boost Insurance to offer a program called “LeaseLock Zero Deposit,” which replaces the upfront security deposit with a monthly charge that renters pay as part of their rent payment.
Security deposit alternatives are growing in popularity, with surety bonds, guarantor services, and even co-signers among the alternative choices.
Through LeaseLock’s program, renters pay as little as $19 per month for the length of their lease term (although the company notes on its website that the typical fee is $29 a month), and then the rental is then insured for more than $5,000 against rent and damage loss.
Unlike a security deposit though, the renter won’t get their money back when they use LeaseLock. The fee is non-refundable, but the company suggests that renters will save money and be able to more easily secure a rental because they won’t have to save up for their security deposit.
“Residents save thousands of dollars at move-in while properties convert more leases with better protection,” the company states. “Boost's technology-driven platform allows LeaseLock to offer flexible coverage adapted to the needs of multifamily property managers and owners from a user experience, operations, and software systems perspective.”
Boost is powering LeaseLock’s offering. Through its managing general agency subsidiary, Boost Insurance Agency, Boost is licensed and authorized to produce any type of insurance across all 50 states.
“LeaseLock’s mission is perfectly aligned with Boost; they are transforming the real estate industry by applying an insurtech solution. We are their insurance technology partner to help power their impressive growth to date and beyond," Boost CEO and Founder Alex Maffeo said. “LeaseLock is truly cutting-edge in the insurtech space. We are excited to partner with them.”
The companies suggest that landlords will now be able to offer their properties as “zero deposit,” which may entire renters to choose their property over another.
“The evolution of the real estate and insurance industries is being accelerated by technology. It is imperative we deliver the most comprehensive lease insurance product to our multifamily customers,” LeaseLock Co-founder and CEO Reichen Kuhl said.
“Teaming up with a digital insurance partner like Boost fortifies our leadership position in the multifamily insurtech category,” Kuhl said. “Backed by Boost, we offer our customers unparalleled risk mitigation while simultaneously making moving more affordable to millions of renters.”
According to the companies, LeaseLock is now available nationwide.