Avenue5 Residential, the fastest-growing enterprise multifamily operator, has more than 70,000 apartment homes across the nation and is ranked No. 15 on the National Multifamily Housing Council (NMHC) Top 50 Managers list. Avenue5 deployed LeaseLock Zero Deposit across premier ownership clients including ColRich, Trinsic, and Compass Acquisition Partners.
Avenue5 discovered that security deposits and surety bonds complicate the lease transaction by creating a financial burden for renters and putting the operator at financial risk. In addition to growing concerns around security deposit replacement legislation, the operator needed an insurance technology solution that would require no selling for onsite teams.
Ultimately, Avenue5 sought to create a more affordable move-in for residents, mitigate financial risk for the operator’s communities, and eliminate deposit administration and liability with a true deposit replacement solution.
“Security deposits and deposit alternatives have failed our industry for many years,” said Mark Stringer, Executive Vice President at Avenue5. “LeaseLock is the only fully integrated insurtech solution that gets our organization out of the deposit business altogether.”
Avenue5 selected LeaseLock as its exclusive national vendor for security deposit replacement. By seamlessly deploying insurance technology through their native property management system, the operator eliminated deposits portfolio-wide. As a result, LeaseLock has insured $10 million in leases for Avenue5 and provided about 5x more protection against rent loss and damage compared to security deposits.
“Security deposits are a thing of the past. Financially, deposits–along with surety bonds–do not make a lot of sense,” said Stringer. “Deposits are too expensive and surety bonds provide inadequate coverage, putting property owners at financial risk. LeaseLock solves these problems.”
With the housing affordability crisis top-of-mind and deposit replacement legislation accelerating nationwide, Avenue5 has stayed ahead by eliminating costly deposits.
To learn more about how Avenue5 Residential has gained a competitive edge and maximized asset performance with Zero Deposit lease insurance, download the Avenue5 Case Study below: