LeaseLock Surpasses $6 Billion in Insured Leases
Leading multifamily insurtech provider doubled its industry reach in the past year
LOS ANGELES, March 21, 2023 /PRNewswire/ — LeaseLock, the leading lease insurance and financial technology provider for the rental housing industry, today announced it has reached over $6 billion in leases insured for residential apartment homes. The milestone comes barely a year after topping the $3 billion mark and is a direct result of the company’s 48% percent growth in homes on the platform since the start of 2022.
LeaseLock’s AI-powered platform, the only true security deposit replacement, has experienced accelerated adoption as operators increasingly recognize the benefits of lease insurance on both the front end with lead-to-lease conversion and the back end with loss management. On average, LeaseLock clients unlock a $200 NOI lift per unit, translating to 1.5 billion in asset value across all Zero Deposit communities.
“Lease insurance removes a longstanding financial barrier for renters by eliminating security deposits, but lifts an even bigger burden for operators in terms of the friction that occurs upon move-out with debt recovery and claims management,” said LeaseLock President Ed Wolff. “Industry leaders are breaking away from outdated security deposits and adopting a more effective and efficient way to manage risk and drive asset value portfolio-wide. The $6 billion mark for leases insured indicates a significant shift in industry thinking, and we believe it’s just the beginning of a much larger migration to smarter loss protection.”
Since hitting $3 billion a year ago, data compiled through property management software illustrates LeaseLock’s scaled growth in eliminating security deposits by state:
- Florida: $44.3 million in deposits (+150%)
- Texas: $78.3 million in deposits (+120%)
- California: $10.9 million in deposits (+86%)
- Colorado: $8.7 million in deposits (+95%)
- New York: $5.9 million in deposits (+60%)
- Maryland: $4.5 million (+7%)
LeaseLock leverages AI to analyze historical financial data and customize coverage by asset. The premier insurtech platform also streamlines the claims experience and consolidates coverage under a single limit to improve debt recovery, while drastically reducing deposit administration and regulatory risk.
The pace and scale of LeaseLock’s growth correlate to a 90% percent resident adoption rate across measured communities, demonstrating that renters are dropping antiquated deposits and deposit alternatives in favor of a seamless experience. As more operators realize the advantages of lease insurance, which replaces upfront deposits with a modest monthly fee, more renters are gaining access to apartment homes that may have otherwise been unattainable with a security deposit requirement.
Because LeaseLock absorbs most resident account balances on the back end, on-site teams aren’t saddled with deposit management responsibilities. The claims process is automatically initiated through the native operating software at move-out, expediting claims processing with payouts in as little as 48 business hours. The elimination of security deposits also removes the opportunity for the contentious resident conversations and negative reviews that often accompany deposit refund disputes.
NMHC Top 50 operator LeaseLock clients include Greystar, Cushman & Wakefield, Avenue5 Residential, Harbor Group Management Co., Western Wealth Communities, RKW Residential, Pegasus Residential, and S2 Residential. Top ownership clients include Goldman Sachs, PGIM, ColRich, Strata Equity Group, GoldCor, Olive Tree, TruAmerica, Pillar, Trinsic, and Goodman Real Estate.
LeaseLock financial technology is driving the next revolution in residential real estate.
Rental housing providers achieve more valuable, efficient properties—and a better resident experience—with LeaseLock. They can put more people into homes more quickly, while improving net operating income, mitigating bad debt, and streamlining site operations.
LeaseLock’s AI-driven risk platform leverages multiple data sources and smarter risk assessment to optimize lease insurance coverage at the property-level, leading to better lease conversion, stronger property performance, and reduced regulatory risk. Deployed seamlessly within existing property management software, LeaseLock makes the move to modern leasing swift, simple, and straightforward.
LeaseLock has insured over $6 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.
Originally published at https://www.prnewswire.com/news-releases/leaselock-surpasses-6-billion-in-insured-leases-301777341.html
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