My Idea for Renting to the Credit Challenged

[Scott Weaner]

I have asked for opinions about Rent Guarantee Insurance, such as THIS. I was considering another idea that I thought of (take that for what it is worth).

If my rental is $1400/month, I was thinking that, instead of having the tenant pay $117/month for rental insurance that covers only 6 months of rent max, that I have them pay that to me. This would not truly be extra rent, as it would still be THEIR money, that I would only use for rent default. I would have them only pay this for a set amount of time, like 1 year. That way, I would have their security deposit PLUS another month of rent to tap if needed. If I never use it, it goes back to the tenant.

Is this idea stupid or could it work?