Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Innovative Strategies
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 11 months ago on . Most recent reply

User Stats

151
Posts
131
Votes
Kristine Ann
  • Investor
  • WNY/CNY/Adirondacks, New York State
131
Votes |
151
Posts

Deposit Insurance = Genius?

Kristine Ann
  • Investor
  • WNY/CNY/Adirondacks, New York State
Posted

One of my kids signed a lease with a big apartment complex.  She had a choice of putting down a deposit equal to two month's rent or paying monthly "deposit insurance."  The insurance is $150/month and she just renewed her lease.  

It worked for her because she was starting out and trying to conserve her cash.  And, wow, it works for the rental company!

The rental company doesn't need to pay the security deposit back to the tenant because it's "insurance."  The longer the tenant stays, the more insurance can be collected to add to the reserves . A landlord can keep those reserves and use it for normal wear and tear or more serious damages.  And let's face it, normal wear and tear is expensive between tenants.  It's pure genius.  

Who has offered this?  I'm wondering if I can do this?  Is there any restrictions on calling it "insurance" if the landlord is just going to deposit it into their reserves?

Loading replies...