Pretoria 15 June 2022 A rental or security deposit on lease agreements is standard practice in South Africa…and for good reason. But for many tenants the deposit is often a source of financial stress. Aruma Insurance Solutions has now brought to market a new alternative insurance-based solution to the traditional rental deposit: the Rental Deposit Waiver. It is underwritten by Yardrisk Insurance and backed by Lloyds of London,

Nico Oosthuizen, CEO of Aruma (FSP: 49237), says they identified this gap in both the insurance and property market and decided to develop an exclusive, affordable product to benefit the property industry.

“In this high inflationary economic climate in South Africa, it has become increasingly more difficult for tenants to afford to pay an upfront deposit of one, two and sometimes even three months when renting a property. This has been exacerbated by the consequences of Covid-19 and lockdowns into account,” says Oosthuizen.

Aruma’s Rental Deposit Waiver is designed for lease agreements in the residential, student accommodation and commercial office sectors, where deposits can range anywhere from R1,000 up to R20,000.

“For the tenant, paying a deposit alongside all the upfront costs of renting a property and moving, poses a significant barrier. For landlords, it often prevents or delays their properties from being rented – at considerable financial loss. Having spotted this gap, we went ahead and developed an exclusive, affordable product to benefit the property industry. Our new product is therefore a mutual win for tenants and landlords alike.”

Tenants benefits from:

• No upfront deposit
• Affordable monthly premiums
• Rent cover for three months for the main policyholder in the event of retrenchment or death

Some of the benefits for landlords:

• This product/policy can replace the rental deposit
• It will additionally cover any damages caused by the tenant to the leased premises up to the chosen amount stated in the insurance schedule
• With each Rental Deposit Waiver policy issued, Aruma automatically takes out an additional policy at no cost to the landlord to cover an uncontested eviction up to the amount of R 30,000 (terms and conditions apply)
• In the event of main policyholders being retrenched by their employer or dying, the landlord or leasing agent will be compensated for three months’ rental income

Aruma’s Rental Deposit Waiver is unique and new to the market. With cover from R310 per month, this product will alleviate financial pressure for tenants who are now able to budget for their deposit. Rental Deposit Waiver is endorsed by the Rental Tribunal.

Contact us www.aruma.co.za or email: info@aruma.co.za

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