Introducing the Lease Risk Mitigation Fee for Enhanced Property Protection

This article is designed to clarify any tenant fees related to lease risk mitigation on the lease.

Dear Valued Property Owner,

Since COVID-19, tenant rental default risks, application fraud, and eviction rates have increased significantly. Although the COVID-19 troubles have subsided, our area is still seeing a high level of tenant default, particularly in the first year of their lease, highlighting the need for added protection for your investment.

TouchPoint PM has implemented a mandatory "Tenant Lease Risk Mitigation Fee". This fee applies to “all tenants” upon move-in, regardless of their high qualifications. It's crucial for owners to know that this fee does not affect our rigorous tenant background checks and qualification parameters. This is because even a highly qualified tenant with a strong income can face unexpected financial challenges due to job loss or changes in their life or health status.

This fee funds our Lease Mitigation Guarantee program, which includes the purchase of a third-party one-year insurance policy for your property covering 2-6 months of rent/eviction losses, and potential malicious property damage for the first year of the tenant's lease.

If a tenant we place fails to pay rent, needs eviction, or causes malicious damage, this policy will help mitigate financial losses, ensuring your property's financial stability.

After the first 12-month lease and policy ends, if we renew the tenant's lease for another year, we will offer the property owner the option to purchase, at the owner's expense, a new 12-month policy to provide extended protection for the new 12-month lease term. On the other hand, if the tenant moves out after the 12-month lease/policy is over, we will obtain a new 12-month policy when the new tenant pays their Lease Risk Mitigation Fee at move-in.

Thank you for your continued trust. If you have any questions, please contact us.