Jetty Deposit: The security deposit alternative that gives you a competitive edge
Security deposits play an important role in rental agreements, protecting landlords from property damage and missed rent payments. But they can also involve significant up-front cost for residents, and tedious management processes for the landlord.
Security deposit alternatives, like Jetty Deposit, offer all of the protection of a traditional security deposit for a fraction of the move-in cost—and none of the extra work. This makes them an excellent option for any landlord looking to make their property more attractive to prospective residents while simultaneously reducing management responsibilities.
What is a security deposit alternative?
Security deposit alternatives enable renters to pay a one-time, non-refundable, fee to a third-party provider instead of providing a security deposit. While traditional security deposits typically require the resident to write a check equal to the amount of one or two months’ rent, the fee for a security deposit alternative is significantly lower.
In legal terms, a security deposit alternative is a type of surety bond, which is an agreement among three parties: a principal, an obligee, and a surety company. In these types of bonds, the surety company is held responsible for guaranteeing the performance of the principal to the obligee.
In plain English, this means that if a renter purchases a security deposit alternative product from a third-party provider, that third party will reimburse the landlord if the renter damages their unit or fails to pay rent (after the landlord unsuccessfully attempts to recover the money from the renter).
Purchasing one of these products is simpler than it might sound, too. The renter pays a one-time, non-refundable fee to the security deposit alternative provider, rather than setting aside the full deposit amount.
Then, if they cause damage and won’t pay up, or fail to pay rent, you can file a claim with the provider. The provider will reimburse you up to the amount of the security deposit, then seek collection from the resident.
Why are security deposit alternatives beneficial to landlords?
Security deposit alternatives have clear advantages for renters. Though the fee to purchase one is non-refundable, it’s a fraction of the cost of a traditional security deposit, which reduces upfront move-in costs and frees up those funds for other expenses. This reduced cost can also help renters access units that are within their budget for monthly rent, but have cost-prohibitive deposit fees.
These alternatives also offer a few key benefits for landlords.
Security deposit alternatives give landlords the ability to advertise lower move-in costs, which enables them to stay competitive with other properties that may be using concessions like reduced security deposits to attract residents.
Standard concessions like lowered security deposits can ultimately harm landlords by reducing the protection they have against damage and lost rent. By using a security deposit alternative instead, you can lower the barrier to entry without losing protection or revenue.
Convenient, mobile-friendly experience
Security deposit alternative are more convenient than traditional deposits for both renters and landlords. Renters can purchase them online, and landlords can skip the tedious processes of collecting and writing checks at the start and end of each lease.
Jetty Deposit offers all of the protection of a security deposit, with none of the hassle.
Jetty Deposit is a security deposit alternative, designed to help landlords attract more residents, close leases faster, and reduce overhead.
When you give residents the option to purchase Jetty Deposit instead of providing a traditional security deposit, they’ll pay a one-time, non-refundable fee of 17.5% of the deposit amount. Then, if they fail to pay for damage to your property or skip rent, we’ll have you covered.
The Jetty Deposit signup process is fast and mobile-friendly, meaning that prospective renters can make a purchase within minutes on their smartphone, right from your leasing office. This way, you can get leases signed faster, and avoid missing out on great residents just because of a tedious deposit process.
Most importantly, Jetty Deposit is a secure way to ditch the security deposit. We don’t use property-level pooling, so there’s no risk that one resident’s damages will eat up all of your funds. Plus, our products are backed by Munich Re, one of the largest reinsurers in the United States, and written on A-rated insurance paper.
Ready to give your residents a better way to meet security deposit requirements? Visit our page on Jetty Deposit to learn how to close leases faster while maintaining protection for your property.