Like many management companies nowadays, Revolution offers new tenants an alternative to the traditional security deposit. There are several different versions of security deposit alternatives in the industry now, ranging from in-house programs funded by the property manager to insurance policies provided by outside insurance agencies. Revolution uses an in-house program that is funded by Security Deposit Waiver Admin Fees paid by the tenant.
The way the program works is that we calculate the monthly fee the tenant would need to pay based on the strength of their application. The tenant pays the monthly fee, which Revolution keeps in order to fund a guarantee we provide to the owner that is equal to the traditional security deposit amount of 1x the monthly rent. On move-out, if the tenant owes money for repairs or unpaid rent, Revolution pays the owner up to the guaranteed amount. In short, the owner is covered the same as they would have been with a traditional deposit, so the owner basically doesn’t know the difference from their perspective.
The benefits of this kind of program are quite clear, though, and not just for the tenant. For the owner, this helps get your property rented more quickly. When we offer a waiver program and other properties the tenant is looking at don’t, it gives us a leg up on closing the deal with that tenant. This leads to shortened vacancy periods for our clients compared to DIY landlords and other property managers. With the owner still protected the same amount as they would have been with a deposit, this one is a no-brainer and a win-win!