Well, us unfortunate folk who cater to C-class tenants in Upstate NY just got our heads handed to us.  The legislature does not want to own public housing; it just merely wants to CONTROL all the housing privately owned and managed by hard-working landlords "in the trenches" like myself.  By statute, we can no longer collect more than one month's security deposit or last month's rent.  These were tools I personally used to mitigate the risk on marginal tenants and/or those that would commonly give notice to vacate and then say "I'm using my security deposit as last month's rent."  With the speed and expense involved in an eviction (which just got MUCH longer), it would be a waste of money to begin such a proceeding.  I only offer MTM leases.

At this point the new laws have done the exact opposite of our governor's intentions (well, not really - this was done to garner votes).  I must now decline the applications of marginal tenants - and I am looking at having to raise rents in order to increase my capital reserves to cover my risk with the inevitable next eviction.

So, to avoid losing all my cash flow for the year on one bad tenant with no "skin in the game" - I'm looking for creative alternatives.  I'm aware of some products out there that act like "bad tenant insurance" where the company vets the tenant and a premium is paid that covers any delinquencies or damage expenses - anyone use any of those?

I'm also looking for other options, as the additional expense of a security premium would put me at a competitive disadvantage in my market until others begin using it.