eRenterPlan Renter's Insurance Managing risk, mitigating exposure and increasing NOI

And, the survey* says…

The top reasons companies chose to offer renter's insurance

1. To decrease the company's exposure/risk
2. As part of an entire risk management strategy
3. To prevent/lessen disputes with residents
4. To offer a valuable amenity to residents
   

Although risk mitigation – not revenue enhancement – was the primary reason companies implemented a renter's insurance program… 

• 50% of respondents whose companies offer renter's insurance reported the program has had a moderately-to-very positive effect on their bottom-line
  
• 92% of respondents reported that administering the renter's insurance program was “easy” or posed “manageable challenges”

* Results come from a national independent study: “Renter's Insurance: National Study on Owner/Manager Utilization and Perceptions”

Your bottom line is at risk
As property and liability insurance premiums continue to increase from year to year (average increase is 17% according to the national study*), property insurance deductibles are also on the rise. As a result, uninsured and below-deductible losses caused by resident negligence are not only problematic, but detrimental to a property's net operating income (NOI). It is not uncommon for apartment communities to carry property insurance with per-occurrence deductibles around $25,000, $50,000 or even $100,000. So, when an uninsured resident (which approximately 95% of all residents are) causes a small kitchen fire that results in $8,000 in damage, who pays the bill? You do. Plus, data shows that because you don't allocate specific line items for these unexpected mishaps, these expenses come directly out of your operational or maintenance budget and thus, you take a direct hit to your bottom line.

What's worse is that property insurance premiums and per-occurrence deductibles will continue to rise and this means that more and more claims will fall short of hitting the deductible.

Learn more about the need for renter's insurance.

Renter's Insurance: Bottom line booster or property management best practice?

The solution: have a renter's insurance program in place that mandates or highly encourages residents to carry a liability insurance policy. The result: you hold the residents accountable for accidental damage they cause and their insurance carrier responds to the claim.

According to the 2005 national independent study, 8.25 residents at a 251-unit property formally request retribution from the property management company for the damage, destruction or theft to their property

In virtually every other sector associated with liability risk (i.e. automobile purchases, home purchases, etc.) the individual is accountable for their own losses.

The multifamily industry has always lagged behind. Now, there's a revolution going on and LeasingDesk is leading the charge with eRenterPlan renter's insurance solutions. Now more than ever, properties are implementing LeasingDesk's eRenterPlan as a property management best practice…and realizing the benefiting with a boost in their bottom line.

LeasingDesk is the only company in the industry that makes it easy to implement a renter's insurance program. Getting started with eRenterPlan and mitigating risk is as easy as:

1. Contacting LeasingDesk to enroll your property or portfolio in the customized solution right for you. Once enrolled, every resident is automatically pre-qualified.
   
2. LeasingDesk handles all training, marketing and administration so there is absolutely no additional burden on you or your staff.
   
3. Because residents are already pre-qualified, they can enroll in minutes for eRenterPlan insurance at www.eRenterPlan.com.
   
4. Throughout the entire relationship with LeasingDesk, we handle all customer service, claims management and ongoing training and on-site support. Renter's Insurance:

One size does not fit all

New, old, big portfolio, small portfolio, located in Minnesota or located in Florida, we have a renter's insurance solution and policy plan perfect for you. Which renter's insurance solution is right for you?

Full-Participation Program – Residents are mandated to show proof of insurance as a condition of residency. (#1 risk mitigation solution)

Full-Presentation – Your property offers and presents LeasingDesk insurance to residents, but does not mandate it as a condition of residency Click on each solution to the left to learn more. Then, contact a

LeasingDesk seasoned multifamily advisor today as they help you find the solution that is right for you and your property's unique needs.