Larry Woodworth is a business consultant and frequent traveler in the US. Last September he scheduled a one-month trip to L.A. to work with a client. He found a great home, perfectly located, at the right price and with all the amenities to enjoy the stay. However, when digging deeper into the quote, he realized an upfront security deposit was required. This deposit placed the overall cost of his stay over his budget limit and pushed him away. Larry’s experience is unfortunately a common experience and a lost opportunity for those listings requiring security deposit.
Security Deposits have been a traditional means for owners and property managers to invite guests to have a skin in the protection of their assets, and dispose of cash at the end of the stay in the event of damages and lost items. In a world of paper leases, paper currency, and limited access to housing supply, security deposits were a viable approach. However, that is not the world we live in anymore. Consumers demand more for their money. At 2nd Address, we feel there is a great opportunity to modernize security deposits in a way that both makes housing more affordable and convenient for business travelers and drives more business for our hosts without the operational and regulatory hassles attached to Security Deposits. We call it Security Allowances.
We are thrilled to announce Security Allowances at 2nd Address! Starting January 31st, business travelers booking at 2nd Address will not be required to make an upfront security deposit. Hosts will set a Security Allowance amount for their listings in the same way they used to set Security Deposits. When a guest requests a booking of a listing, 2nd Address will securely store the guest’s payment details and charge up to the allowance when and if a claim is made. 2nd Address’ Security Allowance process is designed to provide cash swiftly to hosts after a claim is approved.
Beyond our new Security Allowance, Hosts will continue enjoying their 2nd Address Property Guarantee to cover for claims above their Security Allowance. We would also help our guests tap into their 2nd Address Guest Assured insurance, an exclusive benefit of booking at 2nd Address, to recover fully or partially the money used to pay for claims.
Learn more about Security Allowances and how to process claims with 2nd Address.