Debunks the myth that it inhibits a property management company’s profitability
(April 11, 2016) — New research from the data science team at RealPage, a leading provider of property management software-as-a-service, validates that requiring residents to carry a renters insurance policy when leasing an apartment does not negatively affect revenues for property management companies. The study analyzed same-store leasing data from 2008 to present for hundreds of properties across the country that mandated renters insurance compared to those not mandating renters insurance.
While most properties already require that renters carry their own insurance, this requirement is often not enforced across entire portfolios. Some property management companies cite that the main reason they do not mandate renters insurance is the fear of diminishing revenue. This study proves this has no basis in fact and reconfirms that renters insurance provides huge benefits for property management companies and residents.
“As we expected, making residents carry renters insurance has no negative financial impact to the property,” said Rich Hughes, head of data science, RealPage. “And by extension, we can infer that it does not inhibit the community’s ability to lease apartments.”
The research methodology of this study compared the revenue performance of properties that mandate renters insurance against the performance of similar properties that do not in the same markets, sub-markets and ZIP codes. In addition, it covers why residents avoid carrying renters insurance and how to debunk these myths.
RealPage, Inc. is a leading provider of comprehensive property management software solutions for the multifamily, commercial, single-family, and vacation rental housing industries. These solutions help property owners increase efficiency, decrease expenses, enhance the resident experience, and generate more revenue. Using its innovative SaaS platform, RealPage’s on-demand software enables easy system integration and streamlines online property management. Its product line covers the full spectrum of property management, leasing and marketing, asset optimization, and resident services solutions. Founded in 1998 and headquartered in Carrollton, Texas, RealPage currently serves over 11,000 customers worldwide from offices in North America, Europe, and Asia. For more information about the company, visit RealPage.