Benefits for landlords
DepositLending.com works for landlords, too.
Deposit financing helps tenants meet the up-front cost of a lease, and that creates real advantages for landlords, property managers and associations.
Benefits for landlords
Attract more tenants
Make your property accessible to more prospective tenants.
A larger deposit
Increase the security deposit you receive.
Stronger marketing
Improve how your property is marketed.
Mutual benefit
An arrangement that works for both you and your tenant.
Context
Why landlords take deposits
Landlords, property managers and associations typically require a security deposit from tenants to:
- Cover damage beyond normal wear and tear
- Safeguard against missed payments
- Protect against early lease termination
- Encourage tenants to maintain the property to a high standard
- Mitigate potential losses
The reality of security deposits for tenants
Tenants set their rental budget around their monthly income. Most expect to pay a security deposit of at least one month’s rent, yet many are surprised to learn they may owe two deposits, plus the first and last month’s rent, when they sign a lease. Finding that money all at once is a significant challenge.
Many people rent precisely because they don’t have the substantial down payment a mortgage requires. It follows that the up-front cost of security deposits can be just as difficult to meet, particularly as a deposit offers the tenant no financial return, such as property appreciation or interest.
Example · A condo building
What a tenant pays to move in.
Several up-front payments can fall due at once when a new lease is signed, followed by the ongoing monthly rent.
Payments due for a new residential lease
- First month’s rent
- Last month’s rent
- Security deposit to the landlord
- Security deposit to the building association
Ongoing payments
- Monthly rental payments
Between leases
A tenant moving from one property to another.
When a tenant moves from one rental to another, they often face a shortfall while waiting for their previous landlord, property manager or association to return their deposit.
For a period, they are effectively paying two sets of deposits at once. On top of these sudden costs, there are often moving expenses, elevator deposits, pet deposits and more.