Rethinking Security Deposits: A Redemptive Approach
One of the most common barriers we encounter in leasing apartments is that prospective residents are unable to gather enough cash to pay the first month’s rent and a security deposit. This can be as much as $1,800+. Recognizing this challenge, we are offering an alternative to the traditional security deposit for residents who qualify. Instead of paying the security deposit upfront, qualified residents may pay a fee of $35.00 per month.
While this approach offers immediate financial relief, we must address potential concerns:
Financial Stability: We need to establish clear qualifications to ensure we are sourcing residents who are financially stable and likely to thrive long-term.
Property Care: To prevent neglect and abandonment, our lease will clearly state that we will pursue damages beyond normal wear and tear upon move-out.
Long-Term Fairness: If a resident stays longer than thirty-six months, the fee could be seen as exploitative. Our aim is to enrich communities, so we need to consider a redemptive path forward.
Extending beyond mere financial convenience; we aim to enrich the communities we serve. To this end, we are exploring ways to make this fee structure beneficial in the long term. One idea under consideration is converting the monthly fees into traditional deposit funds after a certain period. This means that residents who maintain their apartments in good condition could receive a refund upon moving out. Alternatively, the fee could be waived entirely after a set number of months, rewarding residents for their commitment and care.
By offering this alternative to the traditional security deposit, we are not only addressing a financial barrier for our residents but we hope to encourage a healthy financial trajectory.
We believe that by adapting to the needs of our residents, we can create vibrant, sustainable communities where everyone has the opportunity to succeed.
We invite you to learn more about our approach and how we implement these principles in our work. Stay updated on our initiatives by subscribing to our updates or attending our upcoming webinars. Join us on this journey as we strive to redefine success in real estate investment. www.sovsage.com/join
Enriching Communities through Redemptive Real Estate,
Easton Garcia
Sovereign Sage
Director of Redemptive Real Estate and Community Innovation
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