1) What does the Deposit Saver Program insure against?
a) Protection against damages
b) Protection against loss of last months rent.
2) Is this program available in all 50 states?
Yes the Desposit Saver Program is available in all 50 states.
3) Why again would my tenant desire this alternative?
a) No longer do residents need a large deposit to move in to a new or nicer rental
b) Residents will not have to use savings or borrow money to put up the deposit.
c) Residents do not have to wait for their last deposit to be refunded before looking for applying for a new place.
d) Money they would have used for a deposit can be used for other desired items.
e) Existing residents can get deposit refunded
f) Monthly fee can be reduced every anniversary to as low as $5 for long term residents with good performance records.
g) Long term residents with good performance records who are vacating can actually receive a bonus from the owner or manager who receives a reward for not having to file a claim for unpaid rent or damages.
4) How do I sign up a resident for the program?
All you have to do is submit information about the applicant and rental unit they are applying for. You will receive a response back shortly thereafter from the Deposit Saver Program of how much the monthly fee will be.
5) How much is the monthly fee for a resident?
Deposit Savers monthly fees vary, but is typically between $10 and $30.
6) How does Deposit Saver Determine what the monthly fee will be?
Factors include: amount of monthly rent, condition of rental, how much is regular security deposit, resident's credit and rental history, number of pets, and whether apartment is furnished.
7) Is there anything else I will need from an applicant who accepts this alternative?
a) You will need applicant to sign a move-in condition report.
b) The resident will need to have a valid checking, savings or credit card account and give authorization for the monthly fee to come from that account.
8) Will I have to worry about collecting the monthly fee every month which would add an additional management headache?
Not at all. Collection of the monthly fee is handled by Deposit Saver. However, Deposit Saver does not send a bill each month that the resident has to respond to, they simply collect funds automatically through account resident authorizes.
9) What if my resident gets a new checking or credit card account and wants to change the account being used with this program?
Simply send or fax in another form that the resident signs giving authorization from another account.
10) How would I know if my resident's account goes bad and the insurance payments is not made?
The company handling the payment will notify the owner or manager if a payment is not made for any reason.
11) What if my tenants want to cancel the program or is unable to make the payments?
Just like your present rental agreement probably requires that your tenant give you a deposit, if a resident chooses the deposit saver alternative, then one of the lease requirements is that the deposit saver payment must be maintained and kept current. If the resident cancels or is unable to make a payment, the resident is in violation of the rental agreement and subject to eviction. If the resident is asked to move, it would be just like if you had to ask a resident to move who had a normal security deposit. If you would normally be entitled to keep any deposit monies because of unpaid rent due or damages, then under the deposit saver program you would be also be entitled to file a claim with the insurance company. Under the deposit saver plan, you are far more protected if eviction occurs. Then you start again with a new resident.
12) When my resident is ready to move, what do I do?
a) Notify us, so that the resident's monthly fee payments will stop on lease-end date.
b)
After move-out, fill out a move-out condition report.
c)
Inform residents of any damages beyond wear and tear that the resident is responsible for and inform resident of any unpaid rent he/she is responsible for.
13) Will the resident have any incentive to keep the property maintained if they know they are not going to get any deposit money back?
This is why it is important that you are clear when explaining the program that the Deposit Saver Program does not remove the resident's responsibility of maintaining the property or paying last month's rent. The residents needs to know that the Deposit Saver Program helps to reduce their upfront costs, but they are still responsible for paying for any damages and all rent. If the resident fails to do so, a judgment can still be placed on their records and their performance will be reported to a national tenant screening and reporting agency and that will make it very hard for the resident to buy or rent anything in the future.
14) If there are any damages or unpaid last months rent, how do I get paid?
a) You FIRST attempt to collect it from the resident (who does not give up his responsibilities because he is in the program).
b) If tenant does not pay last months rent or cover damages, you file an incident report so that it goes on the tenant's record. Then you submit evidence of skipped payment or damage expenses with move-in and move-out condition reports to Deposit Saver Program and request reimbursement for damages and unpaid rent.
15)The program sounds great. How do I sign up and get my start up kit?
For rental owners to participate in the program, simply click below to fill out an information request form, which lists the number of properties, typical rent and normal security deposit rates. There will be a nominal sign-up/starter fee depending on the number of units you wish to participate in the program. Once the information is submitted, you will receive a follow-up call from the Deposit Saver Program. If you have any additional questions, please feel free to ask when the representative contacts you.
