Lease Lock?

Question

I just stumbled across this service. Supposedly if the property manager uses Lease Lock to approve a renter, Lease Lock will guarantee rents up to the value of the lease in the event the renter defaults. It sounds nice for us being landlords, but almost to good to be true. Has anyone used this service?

Conor Brennan · Answer

@Marina Wong Rhino is a surety bond, so the tenant pays a monthly fee but they are not actually covered for damages. Upon move-out, if there is damage, the tenant owes that money in addition to the monthly fees they paid to Rhino throughout their tenancy. LeaseLock does actually insure the tenant, however their monthly fees are much higher ($30/month for the tenant), and they only cover up to $500 in damage. I hope this helps!

Marina Wong · Answer

I recently heard of Rhino. One of the syndicators mentioned that to me. I asked another syndicator and she uses Lease Lock. So apparently syndicators are using these products to help with managing large portfolios. If it is good enough for them, it should be good enough for us smaller landlords.

I am not sure if it will make tenants less responsible but Rhino (not sure of Lease Lock) is supposed to work like an insurance of security deposit. I will know more once I attend their webinar. You can go to their website to request a call.

Gregory DuVall · Answer

I am curios about this as well. I do kind of wonder, if it works out as advertised, would it cause tenants to feel they are less accountable since they have insurance? Such as, a normal non destructive tenant would not clean the apartment after leaving because they do not get anything back for doing so?

I would love to have this coupled with a deposit of one months rent. And insurance for bad renters would take away almost all the worries I have about renting.

Brandt Tingen · Answer

Wow I am interested in the same service.  I wonder why no one has chimed in.  Yes sounds great, but what's the claims process actually like?  And after a claim is filed, the price stays at $29?  Would be good to have a few applicants try to apply and see if they are approved, I wonder if the Lease Lock application underwrites the applicant based on factors and only offers them the service if they pass.