Layoff Insurance for Renters: Great for your business, vital for your renters

In today’s unpredictable economy, property managers face a growing challenge: how to keep rental income stable despite the very real risk of renter job loss.

Consider this fact: 40% of Americans have experienced a layoff or job termination at some point in their careers. Yes, layoffs can happen to everyone.  And property managers are even more vulnerable, as every one of their tenants is at risk of job loss.

What can property managers do to mitigate this risk?

Enter Layoff Insurance for Renters - a powerful new protection that reduces risk for property managers, while helping renters stay in their homes. If you’re a property manager, this (no-cost-to-you) new solution protects and grows your business, while offering a much-needed safety net to tenants.

Below, we explain how Layoff Insurance for Renters works. And, we’ll show you why this is the next big thing in the residential rental industry.

The Challenges Property Managers Face Today

The Fear of Fallout from Tenant Job Loss

Job insecurity is a serious concern for many Americans, with 25% of US consumers feeling anxious about their job or employment situation according to a 2023 Deloitte Report. This anxiety is fueled by economic uncertainty, workplace rumors, and a steady stream of cuts news.  In January 2024 alone, over 82,300 U.S. workers were laid off—a staggering 136% increase from the previous month.

Tenant job loss translates directly to financial instability. For tenants, 62% of consumers living paycheck to paycheck are in trouble if they get laid off.  For property managers, if a tenant is laid off and can no longer pay rent, tenant turnover is expensive, with costs averaging to about three months of rent.

Unpaid rent doesn’t just impact immediate income for a property manager. It also creates a ripple effect—leading to additional administrative work, legal costs, and potential property neglect that can lower the value of a rental property.

Traditional risk mitigation tools don’t keep renters in their homes

Risk management comes with the territory for property managers. Most firms already use established tools to protect against tenant default:

1. Security deposits or security deposit alternatives
2. Strict screening processes
3. Rental insurance requirements

And, while these measures help reduce the cost of tenant evictions, they don’t do much to help renters make rent, to prevent evictions, and to keep renters in their homes. In other words, they don’t address the risk from the tenant’s point of view, especially in the case of involuntary job loss.

Every good property manager builds their reputation, and having happy renters who stay in their homes is the best way to achieve that.  Layoff Insurance for Renters is a new risk mitigation tool that serves the renter first. .

Introducing Layoff Insurance for Renters

What is Layoff Insurance for Renters?

Layoff Insurance for Renters is an innovative financial product that pays tenants rent when they are laid off involuntarily.  No payback required, just keep up with the modest monthly premiums.

How It Works

Tenants pay a low monthly fee for policies that cover up to three months of rent if they are laid off. If a tenant loses their job involuntarily, the Layoff Insurance Benefits administrator can even pay the property manager directly on behalf of the renter.  This feature helps property managers ensure the rent gets paid and gives tenants one less thing to worry about during uncertain times.

Benefits for Property Managers

No-Cost Protection

It comes at absolutely no cost to property managers. If you’re a property manager, your renters pay for policies. They get protected, and in doing so, they protect you too.

Ensuring Steady Rental Payments

Layoff Insurance for Renters addresses this by ensuring steady rental income even when a tenant is laid off involuntarily. The cost of a vacant unit averages around three months of rent. When a tenant faces job loss, property managers face costly evictions, tenant replacement costs, marketing expenses, and more. With Layoff Insurance for Renters, property managers mitigate this risk by preventing evictions from the start.

Reducing Tenant Turnover

Tenant turnover can be one of the highest expenses when it comes to property management. In fact, it’s been estimated that retaining a tenant can save property managers around $900 per year, not including rent. Layoff Insurance for Renters helps people stay in their homes, and that means more retention for property managers.

Gaining a Competitive Edge

In an increasingly competitive rental market—where, according to PBS, half of all renters spend more than 30% of their income on rent and utilities—offering layoff insurance can make a rental property more attractive for a tenant when they’re deciding where to live. Because renters feel protected and considered when a property manager offers Layoff Insurance, this helps property managers build their reputations for being on the side of their renters. By offering Layoff Insurance, property managers are providing a safety net to renters, while increasing their own competitive edge.

Opening a New Revenue Stream

Beyond reducing risk, Layoff Insurance for Renters can also earn property managers extra income, through marketing fees. Harmonic pays property managers marketing fees for every applicant they send. This extra revenue can help offset operational costs and increase overall profitability.

Start protecting your rent (and your business) today.

Learn more about how Layoff Insurance for Renters can protect your business.

The Bigger Picture: A Win-Win for Renters and Property Managers

Benefits for Renters

With 66.2% of Americans living paycheck to paycheck, Layoff Insurance for Renters provides tenants with essential peace of mind. This financial protection reduces the stress and anxiety around job uncertainty. And in the case of an unexpected layoff, this insurance gives renters one less thing to worry about.

Strengthening Landlord-Tenant Relationships, and building reputation

By offering Layoff Insurance for Renters, property managers can show that they care about their tenants’ well-being. This proactive approach fosters trust and loyalty, leading to stronger relationships between renters and property managers and better reputations.

The future of property management will be shaped by solutions that prioritize both landlord and tenant interests. Layoff Insurance for Renters is a perfect example of a win-win approach, helping property managers protect their  income while supporting tenants during times of uncertainty.

Are you ready to enhance your property management strategy? Discover how Layoff Insurance for Renters can transform your business and create a more secure, profitable future for your business and your renters.

Start protecting your rent (and your business) today.

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