Deposit-free options for residents 🤔

[Chris Mullinax]

What do you think about deposit-free options for residents such as security deposit insurance? Have you tried this method in your rental business?

[Greg M.]

I don't like the idea of insurance. I want tenants to have skin in the game. I want them to understand they will feel the pain if they damage the unit. I don't want them to assume that some other company will pay for their bad behavior. 

I don't want to have to deal with an insurance company. I don't want to have to argue repair costs with them. I don't want to have to wait days for their adjuster to come out before I can fix the unit. Insurance just adds another layer of problems and extends resolution time.

If you're worried about security deposit liability, many people on these forums have suggested a non-refundable move-in fee. I seem to recall most of them setting it around half of a normal security deposit. Tenants are still liable for damage, but it just becomes harder to collect as there is no buffer in your possession.