[RPPTL Leasing Committee] Tenant credit enhancement issue [IWOV-Active.FID8106045]

[RPPTL Real Estate Leasing Committee]

These companies who guaranty rent have come and gone many times over the
years. Be careful.

 

The 2 main ones now are Steady and Surevestor and both are licensed
insurance companies. 

 

The charge to the tenant is often predatory.  The owner is supposed to pay
it BUT it is passed onto the tenant by way of a "fee". 

 

Another one is a "risk mitigation fee". Property manager charges an extra
$200 to tenant if credit is bad and pockets the money.

 

I know some managers of SFH who are charging tenants $200 a month so the
tenant does not have to pay a $1500 security deposit up front and they
actually continue the charge when the tenant renews!   So tenant in there
for 2 years?  Property manager pockets $4800 and will use $1500 of it in
case there are damages. The property managers are pocketing huge sums each
month.

 

It is predatory and the property manager is self insuring the whole deal.
The property owner does not even know!

 

Obligo, Rhino and SureDeposit are all doing this stuff where the tenant does
not have to pay a full security deposit. 

 

My clients want me to give a stamp of approval on it but I just can't do it.

 

Harry

 

LAW OFFICES OF 
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Email:  <mailto:harry at evict.com> harry at evict.com



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From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of RPPTL Real
Estate Leasing Committee
Sent: Thursday, October 01, 2020 1:50 PM
To: landten at lists.flabarrpptl.org
Subject: Re: [RPPTL Leasing Committee] Tenant credit enhancement issue
[IWOV-Active.FID8106045]

 

No.  Because this bond is to secure only the payment of rent, it is in the
nature of advance rent.  It is not a security deposit to cover damages to
the premises and such other applications as may be addressed in the lease.
The landlord would still want to require a normal security deposit.

 

Warren P. Gammill, Esq.

Warren Gammill & Associates, P.L.

Suite 400, Courthouse Plaza

28 West Flagler Street

Miami, Florida 33130

Telephone: 305-579-0000

Telecopier: 305-371-6927

 <mailto:Gammill at MiamiLawOffice.com> Gammill at MiamiLawOffice.com

Website:  <http://www.gammilllaw.com/> www.gammilllaw.com

 

 

 

From: landten-bounces at lists.flabarrpptl.org
<landten-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL Real Estate
Leasing Committee
Sent: Thursday, October 1, 2020 1:00 PM
To: landten at lists.flabarrpptl.org
Subject: [RPPTL Leasing Committee] Tenant credit enhancement issue
[IWOV-Active.FID8106045]

 

Greetings! A novel issue has been presented and I would like some thoughts,
please.

 

Residential multi-family landlord wants to lease units to tenants with
marginal credit ratings. In order to do so, they have a surety company that
for a premium will bond the amount of rent for a year.  The landlord
proposes to pass the cost of the premium along to the tenant, who will pay
that in addition to the market rent. 

 

This is similar to PMI for a mortgage with a high LTV ratio.

 

Question: Do the premiums constitute security under 83.49? 

 

David  Weisman

Partner

Board Certified Real Estate Lawyer

Greenspoon Marder LLP

200 E. Broward Blvd., Suite 1800

Fort Lauderdale, FL 33301    

Phone 954-491-1120 Ext. 1015

Direct Phone 954-343-6941

 

 <mailto:David.Weisman at gmlaw.com> David.Weisman at gmlaw.com

 <http://www.gmlaw.com/> www.GMlaw.com

 

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