Let's talk about an issue that's been lingering in the shadows of the rental world for far too long: traditional cash security deposits. In a time when we've digitized leasing, explored virtual property tours, and embraced online resident communications, it’s odd that we haven’t made much progress with bringing security deposits into the 21st century.
Here’s a look at why traditional security deposits simply aren’t cutting it – and what properties can do to transform and modernize their approach.
Why Security Deposits Are Falling Short
Financial Burden on Residents
Picture this: a resident has found their dream apartment in a prime location, but to secure it, they need to pay not just the first month's rent but a hefty security deposit as well. It's like a double punch to their wallet – one that can cost several thousands of dollars. In many cases, it's just not feasible for residents to have this much cash readily available, even if they have stellar credit. In other words, residents could be ideal fits for their dream spaces, but if they can’t afford to pay their security deposit, then it becomes a financial barrier that keeps qualified applicants from becoming satisfied residents.
Administrative Hassle for Properties
Traditional cash deposits don’t just pose a barrier to residents; they’re also a huge hassle for properties. Think about it: every time a property manager collects a cash deposit, they have to manage, hold, and potentially return those security deposits at the end of a lease. Holding onto tenants’ cash not only ties up residents’ resources but it also places properties in a position of liability, and it can lead to disagreements when it comes time to give the money back, especially if there are disputes over deductions. Moreover, in some states, landlords and properties are required to pay interest on any security deposits they collect, meaning they need to manage, deliver, and report on not only their deposit amounts but also on the interest paid. These processes require a significant amount of time and effort that property teams could be spending elsewhere.
Standby Deposits Are a New Way to Do Security Deposits
With the challenges of traditional security deposits becoming more and more apparent, many landlords and property owners are seeking a better approach. That’s where Standby Deposits comes in. Standby Deposits is a security deposit alternative that’s designed to change the game entirely.
Standby Deposits is an online platform that integrates with Yardi and most other property management systems. It manages security deposits on behalf of properties while enabling residents to pay as little as $4 a month in exchange for Standby Deposits guaranteeing their deposit on their behalf.
So, what does that mean, exactly? Simply put, properties remain fully protected without having to manage cash deposits, while residents don’t have to pay a costly cash security deposit at move-in. As long as they’re approved for a Standby Deposit and they make their monthly payments, all they need to do is pay Standby back for any damages and fees covered at move-out on their behalf.
Simply put, Standby Deposits is an innovative platform is all set to disrupt the old-school security deposit system. Here are some of its biggest perks:
Affordability for Tenants
Residents can say goodbye to those hefty upfront costs. Instead, they can apply for a Standby Deposit and pay affordable monthly or one-time fees. No more financial stress, and no more barriers to move-in. Now, residents can open doors to properties they thought were out of reach.
Peace of Mind for Properties
Properties can still have peace of mind. Standby Deposits guarantee security deposit amounts on behalf of renters, and properties can access those funds at move-out to cover any damages or fees. Plus, Standby’s streamlined process takes away the administrative headache.
Fast-Tracking the Rental Process
Without the hindrance of the traditional deposit system, properties can rent out their units faster, and residents can move in quicker to their dream spaces. Now, that's a win-win.
Leading the Change
As the world evolves, so must industries. The rental market is no exception. Old-school cash security deposits are relics of the past, and it’s time for properties and renters to step into the 21st century. Standby Deposits offers a refreshing, modern, and streamlined alternative that benefits everyone involved.
Join Standby Deposits in reimagining the rental experience. Let's make renting accessible, efficient, and effective for all.
