Skip to content

How Standby stacks up.

Side by side against the three alternatives we get asked about most, including where the other model fits better. We are trying to be useful, not only persuasive.

Standby and cash deposits.

The default for a century, and the model most operators are trying to get away from. The protection is real. So is the friction: resident cash locked up for the whole lease, fifty different state regimes, monthly reconciliation and a refund argument at the end.

When it is a fit: Standby wins almost every line here. The question is not whether to move, it is how fast.

How the operator gets paid
StandbyRequest a drawPaidCash depositsInspectItemiseLetterChequeDispute?
Moving boxes in an apartment
  • Resident cash locked upStandby
    Standby: None with a certificate. Residents who prefer cash can still pay it.
    Cash deposits: The full deposit, for the whole lease
  • State complianceStandby
    Standby: Handled by Standby on both paths
    Cash deposits: Run by the operator across every state they operate in
  • Getting paid at move-outStandby
    Standby: Request a draw, the money is paid
    Cash deposits: Whenever the resident agrees the deduction is fair
  • Refund workStandby
    Standby: Handled by Standby
    Cash deposits: Itemised letter and a cheque, inside a statutory deadline
  • Cost to the operatorTie
    Standby: $0
    Cash deposits: $0 in fees, plus the staff time
  • Cost to the residentTie
    Standby: A monthly fee set by the operator, or nothing if they pay cash
    Cash deposits: Nothing in fees, but the whole deposit tied up
The honest part. In buildings with very long tenancies and almost no turnover, the resident's maths on a monthly fee is less obviously a win. Cash is still available either way.

Standby and surety bonds.

A bond replaces the cash with a one-off, non-refundable premium. It frees the resident's cash but puts an insurer between you and every payout, and most residents do not realise they still owe the bond company afterwards.

When it is a fit: Standby pays out faster and treats the resident better. A bond can suit a resident who wants to pay once and never think about it again, as long as they understand the premium does not come back.

How the operator gets paid
StandbyRequest a drawPaidSurety bondsFile claimInsurer reviewsAdjudicatesPays, weeks later
A glass office tower against a blue sky
  • Getting paidStandby
    Standby: At move-out, nothing to adjudicate
    Surety bonds: Weeks to months while the insurer adjudicates
  • Resident experienceStandby
    Standby: A monthly fee that stops at move-out, or cash
    Surety bonds: A premium they never get back, then a collections call if a claim is paid
  • If something is owedStandby
    Standby: The resident repays Standby the itemised amount, nothing more
    Surety bonds: The bond company pursues the resident for the paid claim plus costs
  • Underwriting at scaleStandby
    Standby: A soft credit check, decided in seconds
    Surety bonds: The insurer underwrites each case; slow for mid-market portfolios
The honest part. On a very short lease, a one-off bond premium can come out cheaper than a few months of fees. The resident still owes the bond company if a claim is paid, which is the part the premium does not cover.

Standby and deposit insurance.

On the surface it looks like Standby: a small monthly fee, no cash deposit. The structure is different. Insurance pays a variable amount after the insurer's review. A Standby certificate is a guarantee that pays the amount you request at move-out.

When it is a fit: For operators who care about payout certainty, which is most of them, Standby is the better fit. Deposit insurance can win on price where carriers underwrite aggressively.

How the operator gets paid
StandbyRequest a drawPaidDeposit insuranceFile claimCarrier reviewsApplies exclusionsVariable payout
Two people talking in a doorway
  • Payout amountStandby
    Standby: Up to the full deposit, every time
    Deposit insurance: Variable, subject to the insurer's rules and exclusions
  • What is coveredStandby
    Standby: Anything you would have deducted from a cash deposit
    Deposit insurance: Often excludes specific damage categories
  • Time to payoutStandby
    Standby: At move-out, when you request the draw
    Deposit insurance: After a claim review
  • Cost to the residentTie
    Standby: A monthly fee set by the operator
    Deposit insurance: Often comparable; varies by carrier
  • Fits your systemsStandby
    Standby: Dashboard, property-system connectors, REST and MCP
    Deposit insurance: A carrier-specific portal
The honest part. A few deposit-insurance products bundle renters insurance or identity protection. Standby does not. If those bundles matter to your residents, weigh them.

Want it on your numbers?

Send us your current deposit setup and we will model it against your portfolio.

Book a demo →