Security Deposit Waiver Program
A program that offers relief to the property manager, unit owner and guest in lieu of a traditional security deposit while providing the property manager with an opportunity to earn additional revenue.
How does the Security Deposit Waiver Program work?
Simple. Your guest has the option to purchase the Security Deposit Waiver Program at a flat rate in lieu of paying a cash or credit card security deposit.
If your guest chooses the Security Deposit Waiver Program in lieu of a security deposit, they are afforded $1,500, $3,000 or $5,000 of coverage for theft or accidental damage done to the unit or its’ contents during their stay. If a guest needs to report damage, they will be asked to fill out a very simple one-page form – that’s it. They give this form to you and depending on the program you are enrolled in, either request reimbursement from the claim administrator or seek payment out of the designated fiduciary claim fund that you manage.
As a property manager, you no longer get caught in between the unit owner and guest over who is responsible for the damage. You know the situation: The guest states the item was already damaged when they arrived and the unit owner doesn’t care who did the damage – they just want it fixed now. The property manager gets stuck in the middle and most likely ends up paying for the damage. With our program, you are reimbursed for the damage out of a designated claims fund. No more losing money trying to make the unit owner and the guest happy. This is an additional revenue source previously unavailable to you – improving your profitability.
Your unit owners should be happy to see the Security Deposit Waiver Program listed as an option in lieu of a security deposit. It affords $1,500, $3,000 or $5,000 of damage and theft coverage, which is much higher than the traditional security deposit.
For the guest, it is a true transfer of risk. If the guest accidentally damages the unit or its’ contents, they are protected up to $1,500, $3,000 or $5,000. With a security deposit, the money comes directly out of the guest’s pocket. The Security Deposit Waiver Program eliminates the worry of when and how much of the security deposit the guest will receive back from the property manager.
Doesn’t the Security Deposit Waiver Program give the guest the right to trash the unit because they only pay a flat fee?
The policy excludes intentional acts, gross negligence or willful and wanton conduct. In our years of experience, in has been nearly non-existent where a guest has intentionally caused damage to the unit to take advantage of the program. Our clients have not reported increases in annual damage when they switch from the traditional security deposit to our Security Deposit Waiver Program.
Why would I use an insurance company for this program?
Our program helps to avoid problems with State Insurance Departments and has been operating successfully for property managers like you since 1999. In many states, security deposit laws regulate any money collected by the property manager that is taken as a security deposit. Having an insurance carrier such as Virginia Surety Company underwriting the program adds validity by covering the obligations of the property manager. In addition, having this policy in place provides the actual unit owner and guest with the financial protection of an insurance company.