What does a deposit alternative cover?
Deposit alternatives are becoming an increasingly common way for properties to help residents lower move-in costs, without sacrificing protection.
But for properties who are on the fence about offering alternatives, one of the most common concerns is whether they actually offer as much protection as a traditional cash deposit.
As with many questions we hear about deposit alternatives, the answer can vary depending on the provider a property chooses to work with. But at Jetty, our deposit alternative covers the things a normal security deposit is legally allowed to cover in your state*, such as physical damage, lost rent, and unpaid fees.
With Jetty, our deposit alternative covers things a normal security deposit is legally allowed to cover*. This includes physical damage, lost rent, and unpaid fees.
So, for example, if a resident leaves wall paint that will need painted over, stains on the walls or carpet, or broken appliances, Jetty’s deposit alternative can be used to pay for the repairs—much like a standard cash deposit.
If a resident fails to pay rent or leaves without making remaining payments, their balance can also be covered by Jetty’s deposit alternative. And unlike a cash deposit, which is typically limited to one month’s rent, Jetty can cover up to three months’ worth of rent payments.
What’s not covered?
Again, the exceptions to what a deposit alternative covers are very similar to those of a cash deposit. The biggest of these is normal wear and tear.
Small nail holes in walls and furniture marks in the carpet, for example, are considered normal wear to an apartment, and aren’t covered by either cash deposits or deposit alternatives.