The pandemic has accelerated technological change, and with that, automation and integration have emerged as top priorities for the real estate industry. Leasing operations have shifted online, and in response, property managers are looking for ways to streamline their processes, not add additional steps.
For years, the real estate industry has tried to address the problems that surround cash deposits with attempts to modernize deposit management.
If the industry were to rethink the role of cash deposits entirely, operators could begin to approach the problem with more effective solutions that maximize property performance and unlock net operating income.
The potential applications of data analytics and predictive Artificial Intelligence risk modelling, for example, enables properties to solve the financial and administrative problems associated with cash deposits by providing significantly smarter loss protection and better risk mitigation through a more refined financial instrument like LeaseSurance.
From move-in to move-out, LeaseSurance’s software is natively embedded in the leasing process, from lease execution to monthly billing and accounting to receivables and automated claims, and to property performance metrics. This enables property managers to eliminate cash deposits portfolio-wide and drive net operating income—without any additional work for onsite teams.
Instead of paying a costly upfront deposit when moving in, tenants pay a small monthly deposit waiver fee along with their rent and in turn, the property receives customized protection against missed rent and damages.
One of the defining features of LeaseSurance is that it is the only product designed to protect the property owner — meaning properties gain more protection than they would with a traditional cash deposit, which significantly reduces bad debt and improves the bottom line.
Stronger protection against unexpected events and market cycles
What next surprising event will create uncertainty for property managers? What is the next sudden market down-turn?
LeaseSurance is built on a sustainable model, reducing operational risk, and providing customized insurance protection against rent loss and damages on every lease.
Unlike cash deposits, LeaseSurance offers up to five times more protection against rent loss and damages, protecting property managers and asset owners from economic uncertainty.
Affordable move-ins drive more traffic and higher rental conversion rates
Post-pandemic, tenant affordability remains an issue. They are strapped for cash with many unable to afford a cash deposit. Many tenants have to take on debt to finance their deposit, worsening their financial situation. As more tenants search for affordable living options, cash deposits are no longer a viable option.
LeaseSurance, however, eliminates cash deposits entirely, meaning that properties can attract more prospective tenants, accelerate move-ins, and increase conversion rates.
The LeaseSurance (Pty) Ltd is a Juristic Representative of Bryte Insurance Company Ltd., Licensed Insurer and Authorized FSP No. 17703