DepositGuard's escrow service is a fresh solution to a growing problem in leasing. I am advising all of my landlord and tenant clients to use their service. - Jonathan Wolf, Property Manager, President of the Greater Tyler Association of Realtors
Austin, TX (PRWEB) May 31, 2011
DepositGuard concludes two years of research and development with the launch of their web based escrow service at the National Association of Realtors Mid Year Expo in Washington D.C. The same protection that buyers and sellers of real estate have benefited from for decades is now available to tenants and landlords in a simple to use format. In less time than it takes to make an online airline reservation, you are able to open and fund an escrow account.
By conservative estimates, one in five of the currently 1.8M foreclosed properties in the U.S. is a tenant occupied rental home. This translates to approximately 360,000 families that are being pulled into the foreclosure crises right now not because they failed to make their monthly payment, but because their landlord did. Unfortunately, most of these families will be displaced and with many experts predicting a new wave of foreclosures on the horizon, this problem is here to stay.
For tenants to secure a lease, they must entrust money to the landlord in the form of security deposits, pet deposits, and last month rental payments. This raises the question, what happens to this money when the landlord is struggling to make their mortgage payments? Most likely, it is long gone. Of course the vast majority of landlords are ethical and honest business owners, however desperate times can push good people to make bad decisions - in this case to spend their tenant's money to try to keep their head above water.
Tenants who use DepositGuard have full transparency into the escrow account where their security deposit, pet deposit and last month's rent are held. They are able to log on and check their account balance at anytime giving them peace of mind knowing their money is safe and protected. Additionally the tenant earns the interest on their money.
Realtors and property managers who are involved in these rental transactions that become foreclosures, have their reputations (on and off the social web) at stake as well as the risk that a disgruntled tenant may pull them into a lawsuit. Not the type of relationship they hope to establish with a possible future home buyer in the case of a Realtor or a current customer in the case of the property manager. If there is a foreclosure, the tenants are grateful the Realtor or manager advised them to use DepositGuard.
Landlords are quickly realizing DepositGuard's escrow service is not only a better way to conduct business but it also removes the burden and liability of handling the tenants deposits and pre-paid rents. Landlords that accept DepositGuard, are announcing that they operate a credible business and because DepositGuard's service fees are paid exclusively by the tenant, the landlord will also enjoy a higher quality tenant.
"As a property manager, I strongly believe DepositGuard benefits everyone" says Jonathan Wolf, President of the Greater Tyler Association of Realtors. "If you are a rental property owner, think about this. A tenant that is willing to pay to use escrow protection for their deposits and pre-paid rents is a financially responsible tenant. A financially responsible tenant is a responsible tenant. A responsible tenant is a good tenant. And a good tenant increases the value and return of the owner's real estate investment."
The foreclosure crises affects not only property owners but also the families that rent from these property owners. It's clear that DepositGuard's escrow service solves an important part of the foreclosure problem and truly benefits everyone - landlord, tenant, broker and property manager.
About DepositGuard: DepositGuard is based in Austin, Texas and is the new standard for helping tenants and landlords safely ensure the integrity of their security deposits and rental payments. Their unique online escrow service caters to long term leases as well as vacation rentals. For more information or to set up a free user account, go to http://www.depositguard.com.