BENEFITS OF USING ZERO DEPOSIT INSURANCE FOR YOUR RENTAL PROPERTY
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Written by: Putri NurazminaBlueDuck Community Executive
BENEFITS OF USING ZERO DEPOSIT INSURANCE FOR YOUR RENTAL PROPERTY
The world is changing fast whether we like it or not. This includes the technological advancement in the 21st century where the Industrial Revolution 4.0 is currently happening. One of the most obvious things that we can see is the trend of offering an alternative solution using the latest technologies to traditional systems that have been long used in industry and one of them is the BlueDuck Zero Deposit Insurance solution.
BlueDuck Zero Deposit is an insurance solution that has been co-created by BlueDuck and Liberty Insurance Malaysia Berhad. It aims to replace the costly traditional security rental deposit that tenants must pay before moving into their new rental unit or room and unlock landlords’ cash flow. However, new things are not always welcomed, right? Especially when it has been used in the real estate market for a very long time. So why should landlords use our Zero Deposit? Let us tell you some of the benefits!
1. ATTRACT TENANTS UP TO 5X FASTER
During this difficult time of COVID-19 and an unstable economy, people are looking for any alternatives that can save them extra money. Despite the abundant supply of houses in Malaysia, most Malaysians opt for renting as many could not afford to buy a house as prices are reaching an all-time high. However, another dilemma faced by tenants is when they need to pay a high upfront cost before moving in. Thus, this further delays their final decision on whether they would like to move in or not. By using BlueDuck Zero Deposit, tenants can save up to 75% of their money instead of having to pay up to 2.5 months of security rental deposit. This eliminates the high upfront cost AND attracts tenants to rent your rental property faster!
2. UNLOCK LANDLORDS’ CASH FLOW
Rental properties have been a way for people to generate income for decades as it generates good cash flow and it gives extra income in the landlord's pocket each month. However, this is a story for when a landlord’s rental property is rented by a tenant. If a landlord’s rental property is not rented, it means that their cash flow is stuck and they will be facing loss instead. So, the second benefit in using our BlueDuck Zero Deposit is directly linked to the first benefit. By getting tenants faster, landlords can unlock their cash flow faster. Less loss on the landlord's side by not having to continuously pay the bank the full amount of the rental property.
3. LANDLORD WILL GET MORE COVERAGE THAN TRADITIONAL RENTAL DEPOSIT
Let’s say that your rental property’s rent is RM2000 per month and the tenant must pay 2+1 months before they move in. This means that your security rental deposit is limited to a total of RM5000 traditionally. BUT, with BlueDuck Zero Deposit, the landlord will be getting at least 2x more coverage than that! Taking one of our packages that can cover up to RM10,000 sum assured, in case of a runaway tenant, the landlord can claim up to 2 months of unpaid rent, up to 2 months of the latest unpaid utility bills, and malicious damage. For utility bills, traditionally its claim is limited to only 1 month, but with Zero Deposit insurance, unpaid utility bills can be claimed up to a maximum of the latest 2 months (T&C Apply). In addition to that, landlords can even claim fire insurance for building and content. Do you feel more secure now?
All in all, with the ever-changing world, there’s nothing to lose by trying out and using new things that can truly benefit you. Competition is at an all-time high! So, you will need to step up your game or you will be swallowed by other people’s waves in the same field. Be the first landlord to offer an alternative to the traditional rental deposit to tenants and get a good cash flow! Sign up now as a landlord at https://www.blueduck.my/registration/landlord.
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