TheGuarantors, a U.S. insurtech platform for rentals, announced last week the launch of its Security Deposit Replacement (SDR)offering, which offers tenants a flexible, cost-saving alternative to meeting security deposit requirements while also reducing landlord administrative burdens and financial risks.
According to TheGuarantors, SDR replaces the costly security deposit with a much lower one-time fee, making renting in high-priced markets such as New York much more affordable. The company also noted that for landlords, SDR’s automated, centralized process significantly reduces the administrative burden of holding multiple security deposits. Landlords also benefit from strengthened coverage through a dedicated capital pool that can be used to meet additional expenses. While sharing more details about SDR, Joe Ben-Zvi, Managing Director of TheGuarantors, stated:
“SDR extends our range of services designed to eliminate the many inefficiencies in the rental process, giving tenants more options and helping landlords reduce risk and improve financial outcomes. With SDR landlords are getting a better protection compared to standard security deposits, while apartment seekers drastically reduce the high upfront costs of rentals.”
Launched in 2014, TheGurantors is backed by prominent venture-capital firms and real estate investors. The company’s first product, the Lease Guarantee, allows tenants without the required income and credit history to qualify for apartments. Since 2016, TheGuarantors has guaranteed over $100 million in rent through their lease guarantee offering and more than 150,000 rental units are enrolled to use at least one of the company’s product offerings. Julien Bonneville, Founder and CEO, added:
“Our full suite of risk reduction products helps make the apartment rental process safer, easier, and less costly for landlords and tenants alike, which ultimately creates more trust in landlord-tenant relationships. As we continue to expand our offering and user base, TheGuarantors is excited to help more individuals find and move into their new homes.”