As a property manager, you already know what slows down leasing. One of the biggest things? That initial cost of moving in. Rent, deposit, application fees—it stacks up fast. When a potential resident gets excited about a unit but hesitates to pull the trigger, it’s often because of the money they need to cough up upfront. Now, imagine removing the biggest chunk of that—security deposits.
Security deposit insurance is not just a buzzword. It’s a tool that can seriously change the pace at which you lease units. Here’s how it works and why it can help you get your units filled faster—and smarter.
Traditional Deposits: A Barrier You Don’t Need
Let’s be honest. A $1,000 security deposit doesn’t help you lease faster. It does the opposite. It’s a hurdle—one that turns a “yes” into a “maybe” or even a “no.”
We’ve all had those moments. You’re about to close a lease, the applicant is excited, they’ve toured the place, maybe even brought their mom to see it. But when you go over the move-in costs and they realize they need first month’s rent plus a deposit? They pause. Maybe they ask for a day to think. Sometimes, they ghost.
It’s not that they’re not serious. It’s just a lot of money to put down at once. And they’re not wrong to feel that way—moving isn’t cheap. That’s where security deposit insurance changes everything.
Instead of asking for a lump sum, residents pay a small, non-refundable monthly fee—usually $10 to $30. In return, you still get protection, and they get to move in without the financial gut punch. The result? More leases signed, and fewer units sitting empty.
You Get More Leads When You Lower the Upfront Cost
When you advertise your unit, how are you catching eyes? You know rent price and location matter, but here’s a little secret—“no security deposit” stops the scroll. Especially on listing sites where dozens of apartments look exactly the same, that little line grabs attention.
And once they click, the affordability sticks with them. Residents who know they won’t have to scrape together an extra thousand bucks are more likely to apply—and to apply fast.
One property manager shared that after they added deposit insurance as an option, their application volume jumped by 35% within two weeks. The units didn’t change. The marketing didn’t change. Just the barrier to entry got lower. It made the difference.
When you fill units faster, you cut vacancy losses. Think about it—every empty unit is money out the window. Even a few extra days empty each month across multiple units adds up fast. Security deposit insurance shortens that downtime.
Good Residents Are Often the Ones Who Can’t Afford the Deposit
Let’s clear up a misconception. When you offer a no-deposit option, you’re not inviting risk—you’re opening the door to more qualified applicants. A lot of great residents just don’t have cash sitting in a savings account. They might be paying down student loans, covering childcare, or dealing with other normal life stuff.
They have income. They pass screening. But a thousand-dollar deposit still feels impossible. So they skip your unit and move on. Meanwhile, you’re sitting there with a spotless apartment and no one living in it.
When you offer deposit insurance, you’re saying, “We get it.” And more often than not, that message pulls in the kind of residents who stay long-term—because you worked with them, not against them.
More Protection Than a Standard Deposit
Here’s the part that might surprise you. Security deposit insurance actually gives you more coverage than traditional deposits. Most standard deposits cap at one month’s rent, maybe two if you’re allowed to push that. But with deposit insurance, the policies can cover up to six times the rent.
Let’s say your unit rents for $1,500. A traditional deposit gives you maybe $1,500 to cover damages or unpaid rent. With deposit insurance, your policy might cover $4,000, $6,000, or more depending on the provider.
And you don’t have to wait until the lease ends. If a resident stops paying rent in the middle of the lease, you can file a claim. If they cause serious damage halfway through their stay, same thing. It’s faster, more flexible protection that goes beyond what a traditional deposit can do.
Streamlining Move-Ins and Avoiding the Awkward Stuff
Move-ins should be smooth. But when a resident has to scramble for funds, they get stressful—fast. And that stress can sour the entire resident relationship before it even starts.
You want your residents to feel confident when they move in, not like they’re barely holding it together financially. With deposit insurance, they’re walking in the door feeling supported. And that first impression matters.
Not to mention, it cuts down on your staff’s time. No more holding security deposits in trust accounts. No more back-and-forth about when a refund is coming or why it was deducted. The insurance company handles the coverage and recovery, and your team gets to focus on things that actually drive value—like service and retention.
Makes Turnover Easier
Turnover always comes with headaches. You’re walking the unit, documenting damage, estimating repairs, and dealing with deposit returns. Even when you’re fair, residents often feel slighted. It’s an emotional issue. They want their full deposit back, and if they don’t get it, tensions rise.
With deposit insurance, you skip that drama. There’s no refund expected. No argument about what counts as “normal wear and tear.” You file your claim, you get reimbursed, and the resident moves on. That cleaner ending protects your reputation and your team’s sanity.
You Don’t Have to Go All In Right Away
One of the best parts? You don’t have to flip every unit overnight. Many property managers start by offering security deposit insurance as an option. You let the resident choose—traditional deposit or insurance. Over time, as you and your team see the benefits (and trust me, you will), you can roll it out more broadly.
Some companies even make it part of their standard lease offer once they see how well it works. But you’re in control. You decide how fast or slow to implement.
A Smarter Way to Keep Units Filled
The rental market keeps changing, and the most successful property managers are the ones who adapt. Security deposit insurance isn’t just a trend—it’s a smarter way to do business.
It fills your units faster by removing the biggest upfront cost residents face. It protects you with higher coverage and easier claims. It cuts down on awkward refund conversations and streamlines your team’s workload. And most importantly, it makes your property more appealing in a crowded market.
At Pest Share, we see the value of protecting properties while also making life easier for residents. That same mindset applies here. Offering deposit insurance shows you’re thinking ahead—and thinking about both sides of the lease. And that’s a win for everyone.
