Insurtech increases housing accessibility for renters by replacing deposits across portfolios
LOS ANGELES, January 25, 2022--(BUSINESS WIRE)--LeaseLock, the world’s leading insurtech provider for real estate, today announced a milestone achievement of $3 billion in leases insured for residential apartment homes. The milestone comes after the company experienced 400% growth in homes on platform over 2021, signaling accelerated industry adoption of the AI-powered deposit replacement solution.
LeaseLock, the only true deposit replacement embedded at point-of-lease, reached $3 billion in insured lease value just five months after surpassing the $2 billion mark. The rapid growth is bolstered by a dramatic shift in rental housing consumer preference away from deposits, evidenced by a resident adoption rate of more than 90% across measured LeaseLock communities. With LeaseLock, renters enjoy a modern solution that removes financial barriers to leasing a new apartment home by replacing an upfront deposit with lease insurance.
"We take pride in the value we create for both residents and properties through our integrated solution," said LeaseLock CEO Derek Merrill. "We designed our insurtech product to deploy seamlessly in online leasing software making the move-in experience faster, simpler, and more affordable for renters."
As more operators deploy LeaseLock across their portfolios to fully eliminate deposits from their financial operations, more renters are gaining access to apartment homes that may have been unattainable with an upfront deposit or cosigner requirement.
Data compiled through property management software reveals the actual dollar amount in security deposits LeaseLock has eliminated. In Texas alone, LeaseLock has removed $34.2 million in deposits. In Florida, renters have avoided $17.7 million in deposits, while renters in California ($10.9 million), Colorado ($8.7 million), New York ($5.9 million) and Maryland ($4.5 million) have also saved millions.
In addition to removing a significant financial barrier for renters, LeaseLock generates unmatched coverage for multifamily portfolios to lower bad debt while drastically reducing deposit administration and regulatory risk. With a recent, major product upgrade, LeaseLock leverages AI to analyze historical financial data to customize coverage by asset and continuously monitor ongoing risk. The latest release also creates a faster claims experience—generating payouts as quickly as 48 business hours—while also simplifying coverage under a single limit to provide industry leasing protection and NOI impact.
NMHC Top 50 operator LeaseLock clients include Greystar, Cushman & Wakefield, Avenue5 Residential, Harbor Group Management Co., Western Wealth Communities, LMC, RKW Residential, and Pegasus Residential. Top ownership clients include Goldman Sachs, PGIM, ColRich, Strata, GoldCor, Olive Tree, TruAmerica, White Oak, Trinsic, and Goodman Real Estate.
LeaseLock is the world’s leading insurtech platform for real estate.
We provide lease insurance to eliminate security deposits from the rental housing industry—removing complexity for residents and operators while creating a superior financial performance for asset owners.
Powered by artificial intelligence, we optimize coverage by property to better protect owners—resulting in industry-leading bad debt reduction. LeaseLock is deployed seamlessly within existing property software to increase lease conversion, drastically reduce deposit administration and regulatory risk, and improve the resident experience.
LeaseLock has insured over $3 billion in leases backed by insurance rated A (Excellent) by A.M. Best. Our global investors include SoftBank Ventures Asia, Wildcat Ventures, Westerly Winds, Vertex Ventures US, Liberty Mutual Strategic Ventures, American Family Ventures, Moderne Ventures, Mucker Capital, and Hivers & Strivers Investment Fund.
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