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A LANDLORD'S EXPERIENCE WITH THE DEPOSIT SAVER PROGRAM
(from a rental owner who is actually using the program)
My name is Jilly. I am a rental owner in Illinois. I was the 1st person to sign up for the "DEPOSIT SAVER" program. I currently have 5 tenants signed up since it started in June. Each of these tenants (so far) have paid like clockwork and are keeping their apartments very nice. So many people these days live from paycheck to paycheck and this is one way to allow those folks to move into your place. Just because they may seem a little off base in their financial life from some people's point of view, does not mean they will not make excellent tenants. And, if they are great tenants, and continue to spend money as they do, they will hopefully stay in your rental longer as it is hard for them to come up with all that extra money for a security deposit elsewhere. I do the deposit saver program with a bit of a twist. I will NOT allow the tenant to pay the premium, for numerous reasons. The biggest two are 1) I want to know the premium is paid each month, and 2) I can NOT evict for non-payment of an insurance premium, but I can for non-payment of rent. So, I include the premium in the rent due. Also, the only drawback I can see to the program is this: Where is the tenant's incentive to clean when they are moving out because they getting nothing back? So, to resolve that, I add an extra $10 or so to the quote I receive from Deposit Saver, to the tenant. Then, when they are giving me notice that they are moving, I can see how long they have been with me and say, "Hey, if you clean the place well, I will give you $120 (or whatever) as a bonus." Example: I want $500 for a place, and the tenant would like to sign up for my "No Deposit Option". I get a quote from the insurance co. for, say, $12.00 a month premium. I tell the tenant, to sign up for this option, the rent will be $525.00, the additional charge on the advertised rent is for the "no deposit option". Then, each month, Deposit Saver pulls $12.00 from my account, and I make an extra $13.00. If the tenant stays a year, I can offer him up to $156 if the place is left in an acceptable condition, and I am not out anything. If they don't clean to my standards, I have that money to hire a cleaning person. Now, one thing I have NOT done yet is to make a claim. I may be in the position soon here that I may be filing my first one. If and when I do, I will share it on this website. If anyone has questions, feel free to call me...(815) 233-4663. I think this "Deposit Saver" program is GREAT for those looking for an edge, when vacancies are abundant. |
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