A new Texas Apartment Renters Security Deposit Law (SB 1783) has gone into effect this fall—and affords a new, low-cost opportunity for residential apartment owners, managers and renters via a one time insurance (NOT a surety bond) premium.
The new law precludes apartment owners/managers from charging a large, upfront one-time security deposit, traditionally held for the length of the lease.
The concept is called RentSense—created by a long-time insurance executive Tim Wahl who has been a pioneer in the field of new insurance programs.
And TEXAS—with TWO MILLION+ RENTAL UNITS—will be the company's first major focus.
The suite of three offerings begins with the core product, Deposit Plus+, which provides the property manager with 150% of the deposit value, at no cost to them. The tenant pays a one-time low-cost premium which is a small percentage (about 23%) of the full amount of a traditional security deposit.
"This is a very real opportunity for property owners and tenants of multifamily residential apartments.," explained Wahl, CEO of the company. " Owners receive more protection than a traditional security deposit and receive an admin fee adding to their bottom line. Tenants benefit by securing a great apartment without paying a hefty amount of upfront money. And we can offer it to owners/managers with as few as 25 units."
"It's also very different from a surety bond. The coverage is much more comprehensive and secure," Wahl related. "We offer an insurance policy underwritten by an A-Rated insurance carrier, backed by the States Guaranty Funds. . .a surety bond can't do that."
"It's a unique way of providing additional protection for property owners and managers while helping renters get into an apartment for less money, observed Rick Croasdale, senior vice president of sales and marketing. "The new state law demonstrates Texas's vision and commitment to help businesses and consumers in these trying times. It has opened the door to change the traditional paradigm"
The company also offers two other residential apartment insurance plans: (1) Renters Plus+ ( property owners interests are included and owners may submit claims directly) and (2) Return to Renter (which allows owners/managers to offer cash back to hard-pressed tenants)
"The Texas Senate and House overwhelmingly approved the new law, " said Croasdale, a long-time Texas resident who will implement RentSense's state-wide marketing and sales campaign. "Their action is a boost to anyone who owns or rents residential apartments."