Coverage Up to $10,000; Increases Protection over Security Deposits & Helps Fill Vacancies
CALABASAS, CA – The American Apartment Owners Association (AAOA) today announced the availability of LeaseGuarantee (https://www.american-apartment-owners-association.org/leaseguarantee), a new program that reimburses property owners up to $10,000 for unpaid rent, property damage and/or legal fees associated with eviction cases. The service begins at $299 for 12 months of $2,500 protection, has no deductibles, offers greater protection than a security deposit, and enables property owners to fill vacancies quickly by lowering move-in costs when offered in conjunction with a reduced or eliminated security deposit. Fees can be paid by either the tenant or the landlord.
Tenant eligibility for LeaseGuarantee is determined by the results of AAOA tenant screening. For tenants who qualify, rates vary depending on whether the property owner wants $2,500, $5,000, $7,500 or $10,000 worth of coverage as well as the tenant’s credit and eviction history. Landlords faced with unpaid rent, property damage or eviction can receive reimbursement up to the cost of the coverage amount within 30 days simply by submitting a copy of the lease agreement, rental application and court judgment to AAOA.
Key benefits for landlords include faster filling of rental vacancies through reduced move-in costs as well as the ability to require LeaseGuarantee as a condition for applicants with a poor credit rating or a history of evictions. Other benefits include the ability to cover damages that exceed a traditional security deposit, recover lost rent from deadbeat tenants or those who have unexpected financial problems because of issues like job loss, recoup eviction-related legal fees and court costs based on the coverage purchased, and guarantee payment of court judgments without the cost of a collection agency or the risk of non-recovery even with agency assistance.
Incentives for tenants include savings on move-in costs compared to a large security deposit, the ability to qualify for LeaseGuarantee without a cosigner or guarantor, and a certificate of rental payment compliance issued upon lease completion that can be presented to lenders as a credit reference.
“Tenant screening is a critical first step for property owners trying to protect themselves from non-paying renters, property damage and evictions, but even the best screening process may turn up no record of missed rental payments or damages because landlords don’t always take tenants to court for these issues,” said Robbie Cronrod, Vice President of AAOA. “LeaseGuarantee reduces that risk, offers more protection than a standard security deposit, and increases the safety net that property owners need to establish in order to minimize the potential for lost rental income.”
LeaseGuarantee is the latest service from AAOA, the largest landlord association in the country with more than 82,000 members nationwide. The association also offers tenant screening, property management software, state-specific landlord forms, a vendor directory searchable by category and zipcode, and other services for single- or multi-unit property owners. For more information, call AAOA at (866) 579-2262 or visit https://www.american-apartment-owners-association.org.