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Meta description: Renters have different costs when moving into a new property. However, keeping these expenses low could provide various benefits. Here’s how.
For decades, properties have collected all sorts of move-in fees and security deposits when new residents sign for their keys. Designed to offset costs and provide peace of mind, it’s easy to see why security deposits are present at almost every property. However, while security deposits provide some level of financial protection, it may be wise for properties to rethink how much they make residents pay for their security deposit. Here’s why:
Lower Fees, More Benefits
While reducing security deposit fees may seem like a counterintuitive approach for many properties, reducing these costs may actually serve as a long-term benefit for both residents and properties alike.
More Money In Their Pocket
If property managers decrease the costs of moving into their apartment building, residents won't have to pay a large sum upfront. As a result, they will have more money to spend on something else — like their monthly rent payments.
Less Stress
Potential renters don't have to worry about finding thousands of dollars to move into a property if upfront costs are low. That makes the move-in process a more positive experience, which helps properties fill vacancies and stand out from the crowd.
Access to More Expensive Properties
If upfront costs are low, potential renters might be able to afford more expensive apartments, generating increased rental income for property managers in the long run. For example, someone can use the funds they've saved for a security deposit to pay for a larger apartment within the same community.
Lower Vacancy Rates
Apartment complexes advertising low move-in fees and deposits might attract more potential renters. This competitive advantage equips property managers with the differentiator they need to fill their apartments quicker and start earning rental income – especially in markets where housing supply outpaces demand.
How Can Properties Reduce Deposit Costs Without Sacrificing Protection?
Reducing security deposit amounts may seem impossible for many properties – especially those that can’t afford to compromise on property protection. But what if there was a way for properties to reduce how much their residents pay in security deposits without compromising on protection?
Lucky for all the property managers out there, there is.
Standby Deposits: A New Take On Security Deposits
At their core, Standby Deposits are about transforming the traditional rental security deposit process. They’re a deposit solution that's not just an alternative to the norm but an innovation designed to lower costs for residents without compromising protection for properties.
Standby Deposits is a deposit alternative where approved residents can pay a low monthly or annual fee for a Standby Deposit that guarantees the full cost of their traditional security deposit. Properties will receive funds from the Standby Deposit during move-out to pay for any charges outlined in the lease agreement. Then, the resident simply pays Standby back for the amounts drawn from their Standby Deposit.
Simply put, with Standby Deposits, renters pay lower move-in fees, and properties are protected with access to the full security deposit amount.
A Win-Win For Residents & Properties
At the end of the day, properties will always feel more protected if they charge security deposits – but that doesn’t mean they can’t lower move-in fees for residents, either. With Standby Deposits, properties can stay protected, and residents can keep money in their pockets.
It’s a win-win that benefits both parties.
To learn more about Standby Deposits or to become a partner property, visit https://www.standby.io/.
