Goodman Real Estate, Inc. (GRE) is a leading real estate investment company specializing in multifamily and commercial real estate. Headquartered in Seattle, they are valued at $3.5 billion in assets and maintain a diversified portfolio spreading across five states, totaling 14,142 apartment homes. Known for its excellence in community service, GRE launched LeaseLock Zero Deposit portfolio-wide for their owned and managed assets in Washington and Arizona to power a modern lease experience with insurance technology and unlock the value of risk prediction.
As a company dedicated to creating a great resident experience while maximizing asset performance, GRE needed a solution that wouldn’t impose financial burdens on residents or put the owner/operator at financial risk. In addition, GRE wanted to avoid the mounting complications and liabilities of deposit alternatives like surety bonds.
GRE sought a solution that would eliminate—not compound—the various financial, administrative, and regulatory problems tied to deposits and bonds. During the pandemic and ahead of growing deposit legislation, GRE committed to finding a deposit replacement solution steeped in predictive risk analytics that would provide smarter loss protection as well as create a better resident experience, mitigate bad debt, and improve asset value for its investors.
“The apartment industry is in transition. Operators have grown more frustrated with security deposit restrictions while residents are demanding more affordability,” said Kelli Jo Norris, President of GRE. “The pandemic [accelerated] state and local deposit legislation compounding administrative burdens and liability while reducing loss protection for asset owners.”
After deploying LeaseLock across its entire portfolio, it took GRE just 10 days to fully implement lease insurance, enabling its residents to pay a deposit waiver fee in lieu of a deposit and eliminating deposit administration in the leasing office.
Through a seamless integration with their property management system, LeaseLock insurance technology has insured over $10 million in leases for GRE and has yielded more than 5x more protection against rent loss and damage compared to security deposits. The owner/operator has also benefited from an elevated and smoother claims process resulting in nearly twice as much coverage by claims paid.
“LeaseLock allows us to move away from deposits while gaining enhanced protection through its first-to-market lease insurance, ” said Norris.
Especially with the housing affordability crisis and deposit replacement legislation accelerating nationwide, GRE has remained ahead of the curve by replacing costly deposits with lease insurance.
For a deeper dive into GRE’s decision to implement lease insurance and the results since launch, click below to download the case study digest: