Strata Equity Group, a San Diego based real estate developer that owns 75 multifamily communities and more than 20,000 apartment homes, enhanced its leasing funnel performance and improved protection by offering residents a Zero Deposit move-in.
With pressing concerns around housing affordability and the drawbacks to using inefficient financial instruments, Strata understood that security deposits were increasingly failing to provide adequate coverage for its assets. Specifically, Strata assessed move-outs and discovered issues with damage coverage. However, property teams were reluctant to make a change.
Strata’s effort to address insufficient damage coverage also coincided with a wave of security deposit laws meant to provide operators and renters with different deposit solutions.
“We were familiar with surety bonds, but didn’t really love them,” said Andrew Gordon, COO of Strata Equity Group. “Of the solutions we tested, we really liked the LeaseLock model, their leadership team, the sustainability of their product, and the things they’re doing that are different from their competitors – namely, they offer better protection and the ability to recover damages and lost rent at a higher level.”
After testing multiple products, Strata selected Zero Deposit™ lease insurance. In a six-month timespan, Strata deployed LeaseLock at 57 of its 75 properties which experienced a boost across multiple leasing performance metrics including closing ratio, signed leases, applications, as well as faster lead-to-application and lead-to-lease timeframes.
Strata also gained 2.5 more coverage against rent loss and damage than a traditional security deposit — all while creating a more affordable move-in for residents. Gordon said the LeaseLock model meets the needs and expectations of today’s renter.
“If a prospective resident doesn’t have to go in and deal with their surety depositor to set up their bonds, that helps,” Gordon said. “Having that lease insurance process integrated into the property management system creates a simple, streamlined process, and has the ability to improve conversion rates.”
For a detailed analysis of Strata’s leasing performance metrics and coverage results, fill out the form below: