NEW YORK, June 14, 2018 /PRNewswire/ -- TheGuarantors, a leading InsureTech provider for the rental market, today launches an innovative service that gives tenants a flexible, cost-saving alternative to meeting security deposit requirements, while also reducing landlords' administrative burden and financial risks. The total amount of residential security deposits held by landlords in the U.S. exceeds $50 billion.
The service, Security Deposit Replacement (SDR), replaces the costly security deposit with a much lower one-time fee, making renting in high-priced markets such as New York much more affordable.
For landlords, SDR's automated, centralized process significantly reduces the administrative burden of holding multiple security deposits. They also benefit from strengthened coverage through a dedicated capital pool that can be used to meet additional expenses.
"SDR extends our range of services designed to eliminate the many inefficiencies in the rental process, giving tenants more options and helping landlords reduce risk and improve financial outcomes," said Joe Ben-Zvi, Managing Director of TheGuarantors. "With SDR landlords are getting a better protection compared to standard security deposits, while apartment seekers drastically reduce the high upfront costs of rentals."
Since 2016, TheGuarantors has guaranteed over $100 million in rent through their lease guarantee offering and more than 150,000 rental units are enrolled to use at least one of the company's product offerings. This group includes some of the largest property management companies in New York, including Equity Residential, Tishman Speyer, and Rockrose. In addition to lease guarantee, the company offers a renters insurance compliance platform that automates the process of getting a building's tenants covered, therefore ensuring maximum liability coverage for the landlord. The market size for renters insurance in the United States is estimated to be at $5 billion.
"Our full suite of risk reduction products helps make the apartment rental process safer, easier, and less costly for landlords and tenants alike, which ultimately creates more trust in landlord-tenant relationships," said Julien Bonneville, Founder and CEO. "As we continue to expand our offering and user base, TheGuarantors is excited to help more individuals find and move into their new homes."
The Guarantors' offerings, including the SDR, can integrate with most property management software to further streamline the rental process and minimize vacancies. For more information please reach out to [email protected].
TheGuarantors is an InsurTech startup aimed at improving tenant / landlord relationships through innovations in product development and delivery. In 2016, the company launched its residential lease guarantee business focused on helping qualified renters secure apartments. The company has since guaranteed over $100 million in rent. In 2018, TheGuarantors launched residential security deposit replacement and rental insurance offerings, adding to their suite of products designed to help landlords further reduce risk when finding tenants.