Residential Landlord · Indianapolis, IN · Member since 2010 · 592 posts · 138 votes
Has anyone used suredeposit.com? Any reviews?
My initial thoughts are that it is nice because tenants can move in with less money out of pocket, but I still have the same amount available in case of damages. However, I would also be concerned about the way the tenant would care for the property if they had paid a non-refundable fee instead of a refundable security deposit.
Well Bill, Google search for her name turns up people in property management. Still possible that she is otherwise affiliated with the company in this post, but that's not totally clear.
Some of the largest property management companies here in Phoenix use suredeposit. I believe the company only used to take large clients - not sure if they have changed their policies to accept smaller apartment owners.
I did some looking around on their website and after completing a few forms, it seems they are still only working with managers with over 1000 units, I'm not quite to that point yet so I guess I don't have to try to decide whether or not I want to work with them.
I currently use Sure Deposit on all of my multi-housing sites and love it. My sites are located in midwest markets in which the average security deposit is $99. Being able to pay $87.50 for $500 worth of coverage not only benefits management, but the customers love the saving as well. When you submit a claim to Sure Deposit, the process is simple and you receive payment quickly.
Well Bill, Google search for her name turns up people in property management. Still possible that she is otherwise affiliated with the company in this post, but that's not totally clear.
I would absolutely love to get a look at that company's books. It is a mystery to me how they can provide $500 worth of "security deposit" for less than a hundred dollars.
When tenants have so little of their own money invested in a security deposit, they don't care as much. Sort of the whole reason we ask for a security deposit, right?
So, just by design, you have a class of tenant more likely to wrack up costs and damages. I am guessing that the company is banking on landlords magically forgetting about these funds (unlikely!), OR claims are very hard to get approved and paid, OR they are very, VERY good at getting and collecting on judgments against the tenants (my thinking is, unlikely).
I know it's a volume business, but all you need is one in five tenants to have a $500 claim made against them, and you're sunk. (Or is this an annual payment? I am working on the assumption it's a one-time thing.)
Can someone shed some light on the economics here?
That was my question also. What is the claim process like. I know with insurance companies for example you pay and pay and pay and then all the sudden get one claim and they try doing everything to get out of it.
Paul, I had a chat about this company with one of the top property management companies here in Phoenix. (Mark Taylor).
I really liked the SureDeposit service and the Mark Taylor people told me it works really well for them, and it also allows them to sign up tenants more easily because the tenant has to shell out less cash. SureDeposit reduces its risk by limiting its service to better apartment complexes and better property management companies. It will be virtually impossible for class B and C properties to get the service.
Hi All,
I may be in a unique position to provide clarity on a few of the issues raised above. So, with this disclosure – I am a co-founder and CFO of SureDeposit, please note:
1) We do indeed look for a 1,000 unit minimum size for client participation, although we make exceptions from time to time;
2) Loss limits are an integral part of the program (in reply to DeuceSevenOff). As our clients know, whether or not every claim is paid we help improve their bottom lines. Bad debt is inevitable in multifamily; the clients who find value in our program do so because we reduce their bad debt, but cannot always eliminate it.
3) We have more than one thousand class B and class C communities utilizing our program, in addition to more than one thousand class A communities. There are some circumstances in which it is not in our client’s interest to use us at communities with very high claims rates; however, there is no blanket restriction on our part.
I hope my comments were helpful. --Dan Rudd