Apartment owner Goldcor Capital Partners has a portfolio of Sunbelt state properties. Goldcor has rolled out LeaseLock Zero Deposit™ across its properties and new acquisitions to replace security deposits portfolio-wide.
The operator discovered that security deposits and surety bonds posed a financial obstacle for prospective renters, and created too much risk.
“Like many apartment owners, we have seen an uptick in fraudulent records from new move-ins that are brought to our property management company,” Nir Goldberg, managing partner at Goldcor, told GlobeSt.com. “We wanted an additional way to protect against that. We have looked at other lease protection companies, however, there had to be a pool that the property had to build up to cover the damages.”
Goldcor determined that security deposit alternatives would not solve the major problems associated with deposits, and therefore launched Zero Deposit™. By eliminating deposits portfolio wide, the owner gained superior protection from rent loss and damage — about 3x more coverage compared to deposits.
Thanks to LeaseLock’s seamless system integration from move-in to move-out, the owner experienced lifts across leasing metrics, including a 16% boost in signed leases.
“We rolled it out in our portfolio, and we have already gotten a positive response from our leasing staff. Our prospects are embracing the program, and the ongoing fee has not been a deterrent to leasing and has actually been more advantageous than taking out upfront deposits,” said Goldberg.
Especially in light of the housing affordabfility crisis and accelerating security deposit replacement legislation, Goldcor is ahead of the game in eliminating the cost burden and administrative hassles of deposits.
To learn more about the asset performance benefits of LeaseLock’s lease insurance, download the full Goldcor Case Study by filling out the form below: