Reichen Kuhl

New technologies allow multifamily owners to eliminate the need for security deposits—but why should they? According to LeaseLock, which offers a Zero Deposit program, eliminating security deposits has big benefits for both owners and renters. The benefit for renters is pretty self-evident: it decreases move-in costs. For owners, however, can accelerate the leasing cycle and increase occupancy rates.

“For apartment owners, eliminating security deposits has proven to accelerate the leasing cycle. Operators are experiencing an increase in lead traffic anywhere from 10-20 more leads per week on properties marketed as Zero Deposit. Those leads are converting to leases, on average, two-and-a-half days faster with LeaseLock in place,” Reichen Kuhl, CEO for LeaseLock, tells GlobeSt.com. “Additionally, occupancy rates are increasing as renters are moving into their apartment homes 10 days sooner as they are no longer having to wait for an additional paycheck to pay any move-in fees. LeaseLock also slashes the high administrative costs of dealing with security deposit refunds and offers greater coverage in the instance of vacancy loss due to a resident skip or any other bad debt.”

While increased occupancy and fast leasing cycles is a more quantifiable benefit for the owners, the improved leasing experience for renters is also a benefit. “Data from HotPads has indicated that, on average, a renter pays more than $3,400 in additional fees to move into a new apartment—a majority of this is due to the security deposit,” says Kuhl. “Additionally, the Federal Reserve reports that close to 40% of today's population can't afford to pay a $400 emergency expense in cash. By eliminating security deposits completely on every new lease, LeaseLock helps to improve affordability opportunities for all renters.”