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What’s Happening in Multifamily?
In the article, Bowen explains how the aftermath of the Great Recession pushed operators to minimize leasing friction. One of the biggest levers? Reducing or eliminating security deposits to attract and retain renters.
While this approach helped boost occupancy, it came with real costs:
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Security deposits dropped from one full month’s rent to under $500 on average.
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Bad debt doubled, now consuming 1–2.5% of rental revenue in many portfolios.
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The result: occupancy gains that aren’t paying off financially.
What Can Operators Do Now?
Bowen outlines three approaches for moving forward:
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Requiring larger deposits again (not renter-friendly)
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Relying more heavily on fraud prevention tools (important but incomplete)
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Transferring risk off the balance sheet with solutions like lease insurance
Unlike surety bonds, which only underwrite individual residents, lease insurance shifts coverage to the asset level, creating scalable protection across entire portfolios while preserving the resident experience.
A Critical Moment for Multifamily
As risk continues to rise and cost pressures mount, this article shines a spotlight on the urgent need for new strategies. Operators don’t have to choose between occupancy and protection—they just need a smarter model.
📖 Read the full article on Propmodo:
Why Is the Property Industry Trading Risk for Occupancy?
by Andrew Bowen, SVP Strategic Partnerships, LeaseLock
