Leap

About Leap

Leap operates at the intersection of insurtech and real estate technology, providing risk management solutions for the rental market. Founded in the summer of 2018 by Richard "Rory" O'Connell, the company was established to address challenges in the leasing process for both landlords and tenants. O'Connell, who serves as CEO, brought extensive experience in finance and insurance to the venture, including a previous role as COO at Insurent Agency Corp., one of the first apartment lease guarantors in the U.S. This prior experience provided him with insights into the difficulties of introducing new models to a traditional real estate market.

The company's core business revolves around offering insurance-based alternatives to traditional security deposits and lease guarantors for the multifamily, single-family, and student housing sectors. For landlords, Leap's products are designed to improve financial performance by reducing the risks associated with tenant defaults, while streamlining the leasing process and boosting occupancy rates. For renters, particularly students, recent graduates, or those with sub-optimal credit histories, Leap offers a path to securing housing they might not otherwise qualify for. The company's model specifically includes underwriting applicants with FICO scores below 600.

Leap generates revenue by charging renters a one-time, non-refundable fee to guarantee their lease, which typically amounts to about 70% of one month's rent. In August 2021, the company launched Leap Deposit Replacement (LDR), a product that substitutes a large upfront security deposit with a small, non-refundable monthly fee. This service provides landlords with protection against damages and lost rent while making moving more affordable for tenants. The application process is digitized, can be completed via a mobile app in minutes, and provides a decision within half an hour. Leap currently serves clients who operate over a million homes across all 50 states.