Landlords - Thoughts on commercial deposit insurance product?
I'm considering investing in a company that provides a commercial deposit insurance product that replaces lease deposits for office and retail tenants. This allows businesses the ability to access and invest critical liquidity while providing landlords with enhanced coverage against defaults. Basically, instead of a tenant putting down a deposit, they agree to an insurance policy with a monthly premium rolled into their rent. The liability coverage for the LL is also typically higher than a cash security deposit. The goal is to increase leasing volume while also increasing the security for the LL and reducing leasing friction for both tenant and LL.
Would this be useful for you and your properties? Any potential downsides you can think of?
Any feedback you can provide, positives and negative, will be very helpful. Thank you!