New LeaseLock Partnership Promises to Eliminate Security Deposits

LeaseLock Insurance Services and Boost Insurance have formed a partnership to bring the first insurtech product to the market for rental housing properties. The service will protect owners from losses from insufficient security deposits. Ultimately, this will simplify the leasing process and eliminate security deposits, providing a better experience for both owners and tenants, according to the company.

“As LeaseLock continues to build our lease insurance product offering for the apartment industry, it was imperative we find an agile and innovative insurance technology provider as our main insurance partner. Boost is that partner,” Reichen Kuhl, CEO for LeaseLock, tells GlobeSt.com. “We feel strongly the company’s innate ability to adjust to rapidly changing market conditions closely aligns with LeaseLock’s comprehensive lease insurance solution and together are driven to change how the industry looks at security deposits. This partnership will ensure we continue to deliver the greatest insurtech solution to meet the needs of today’s renters while offering multifamily apartment operations with the greatest risk mitigation possible.”

With rising rental rates and cost of living in major cities, security deposits have become what Kuhl calls a common pain point. Security deposits are meant to protect landlords, but often come at the price of turning away quality renters. “I was denied an apartment in NYC because I didn’t meet the often unattainable 80-times annual income requirement at that property, and would need a guarantor,” he says. “This rule was supposed to serve to protect the property against losses at the huge expense of renters.”

This was the initial impetus for LeaseLock Insurance. “I knew there had to be a better way, a more affordable way for modern renters to live in the apartment home of their choice while simultaneously providing apartment operators with the financial protection they needed,” says Kuhl. “Lease insurance from LeaseLock overcomes these pain points by eliminating antiquated security deposits. Instead residents gain access to a positive move-in experience with a budget-friendly, monthly fee requirement. Apartment operators gain greater coverage than offered by security deposits, surety bonds or guarantors. It’s truly a win-win situation.”

Under LeaseLock, renters pay a $19 per month fee that insures properties for $5,000 against rent loss and damages. As a result, the program eliminates the need for surety bonds, cosigners and guarantor services. It also saves thousands of dollars in up-front move in fees while also protecting owners from damages.

The new partnership with Boost will enhance LeaseLock’s current platform to optimize pricing and extend coverage. “The partnership with Boost will not change the platform but further enhance LeaseLock’s current product offering so that we may continually optimize pricing, speed, and coverage for our clients using the vast amounts of data we collect and on which development of the insurtech industry relies,” says Kuhl.

In addition to enhancing the current program, the partnership will allow LeaseLock to create new products that meet tenant and owner needs as the market continues to evolve. “The multifamily industry is at an interesting tipping point as more apartment companies understand the value of leveraging proven, outside-the-industry technologies and solutions,” says Kuhl. “We believe our partnership with Boost will continue to allow LeaseLock to deliver the industry bleeding-edge solutions to exceed tomorrow’s needs.”