Dallas-based LeaseLock, a provider of lease insurance for rental housing, has partnered with Everett, Washington-based DepositCloud from ResidentRadius “to fully remove the burden of deposits for rental housing.”

LeaseLock said the strategic integration of these solutions empowers renters to enroll in Zero Deposit while providing a full-service cash management platform for remaining deposits. 

“Deposits are a barrier to leasing that guarantee bad debt. LeaseLock replaced deposits while offsetting the risk of inevitable write offs” LeaseLock CEO Janine Steiner Jovanovic said in a statement. “DepositCloud facilitates Zero Deposit enrollment while absorbing operating burden and mitigating risk, when renters choose to leave a deposit.”

According to LeaseLock, lease insurance works like this: Instead of paying a costly upfront deposit upon move-in, renters pay a small monthly deposit waiver fee along with their rent. In turn, the property manager or owner is protected against missed rent and damages with customized coverage.

Launched in 2016, LeaseLock was formerly headquartered in Marina del Rey, California, before relocating to offices at 5050 Quorum Drive in Dallas within the last year.

Benefits both renters and property owners

LeaseLock said that through its solution, housing operators and investors can provide accessible housing for renters while streamlining operations and ensuring compliance. Deposit Cloud removes administrative burden as well as risk and compliance challenges by handling all deposit requirements, including renter communication.

LeaseLock said that by minimizing the issues surrounding deposits, DepositCloud and Zero Deposit “elevate the leasing experience at move in and move out and remove the friction deposits can create.”

LeaseLock said that both it and ResidentRadius aim to deliver industry solutions that serve the best interests of renters, property operators, and investors at the same time. Renters using the service can enroll seamlessly in Zero Deposit, and choose not to leave deposits “97% of the time.”

Removing deposit costs accelerates leasing decisions while ensuring properties have optimal protection from unpaid balances at move out, LeaseLock said.

“DepositCloud and LeaseLock Zero Deposit are the perfect match,” Michael Bowman, CEO of Resident Radius, said in a statement. “We’re excited to offer an integrated solution for the industry that meaningfully streamlines operations, enhances leasing for renters, and delivers 3-5% more NOI for investors.”

AI-powered underwriting—and a $52M Series B

LeaseLock said its AI-powered underwriting, LeaseLock Shield, predicts risk and optimizes coverage for each property and portfolio. Owners and operators gain smarter loss protection while accelerating leasing and minimizing regulatory and legal risk, the company added.

WIth more than $10 billion in leases insured, LeaseLock said it’s reshaping the way investors and operators manage financial risk while delivering significant benefits to renters.

In 2021, LeaseLock announced the closing of a $52 million Series B financing round. It said at the time that the funding would expand its lease insurance product into the first AI-powered financial technology platform for enterprise real estate.

The Series B round was led by London-based Westerly Winds (founding partners from BlackRock) and Wildcat Venture Partners, with major investors also including SoftBank Ventures Asia, Vertex Ventures US, Liberty Mutual Strategic Ventures, American Family Ventures, Moderne Ventures, Strata Equity Group, Veteran Capital, and Mucker Capital.

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