Attention Owners;
On 18 September 2023, RentWerx agreed to a settlement with the Texas Department of Insurance (TDI) regarding unintentional regulatory compliance oversights concerning several of our assurance packages. These include the additional coverage that owners have been able to opt in for by purchasing Eviction Assurance, Damage Assurance, Added Animal Protection, and Rent Protection along with the billing design of our Resident’s Benefit Package.
Based on our assessment of this regulatory matter and with assistance of legal counsel, I was given no choice but to cancel these programs under the TDI settlement guidelines. I want to express to our owners that RentWerx has fully cooperated with the TDI and chosen to settle this matter outside of a formal hearing which includes paying an administrative fine. You may expect representatives from the TDI to reach out to you individually to verify you have been given this information in accordance with the settlement. It is our intent to avoid any future oversights or misunderstandings in this highly technical regulatory area.
To further explain, when we designed these value-added programs, our intent was to provide these benefits to our owners and “Provide Exceptional Service” which is at the fore front of our business mantra. We modeled some of these programs directly off what other property management companies were offering in our market, applying them to our 3-tiered pricing model with a flat fee management structure.
Owners may read the Texas Department of Insurance order here: www.RentWerx.com/TDI, which specifically notes that there were no intentional violations of these regulatory compliance items.
New Management Programs: RentWerx has immediately removed all of the above programs from our management system and has already revised all of our advertised property management programs and associated fees.
Your New Management Agreement: Effective 1 December 2023, all the programs mentioned above will be referred to an insurance carrier for individual purchase. That carrier is called SureVestor. Owners may review the terms and conditions of their policies and opt in for any coverages you may consider viable for your situation. www.RentWerx.com/SureVestor
With these required adjustments to our management programs, RentWerx will no longer be able to offer a three-tiered flat fee management fee design.
RentWerx will be adjusting all management fee structures to align ourselves with the rest of the property management market.
On 1 December 2023, your monthly management fee will change to reflect the letter your were sent by our management team adjusting your monthly management fees. This will be reflected in your December statement and is also in accordance with our 60-day notice in our original property management agreements.
Competition: In researching the local competition for what is currently being offered, we have discovered this monthly rate as being very much in line with what is considered common and customary. We have also discovered that many of our competitors are still offering programs that RentWerx was penalized for. So, we ask you to consider that if you see another management company offering the same packages RentWerx was offering, it will only be a matter of time before they are forced to remove them like RentWerx has.
For a full list of our market research: www.RentWerx.com/competition
We look forward to continuing always striving to provide exceptional service to our owners and tenants as we make these required changes to our business.
Should you have any questions or concerns about these coming changes, feel free to reach out to our management team.
25 September 2023
2023-8196
Commissioner’s Order
RentWerx, LLC
SOAH Docket No. 454-23-14127
Page 10 of 10
Exhibit A
The Texas Department of Insurance (TDI) determined that RentWerx, LLC, is engaging in the business of insurance in Texas without authorization by marketing, selling, and administering two kinds of insurance programs or packages in Texas: one for tenants, and one for landlords.
As a result, RentWerx will no longer offer any insurance to tenants and landlords, and any coverage you presently have through RentWerx will be canceled effective Monday 27 November, 2023, at 09:00 a.m./p.m.:
- For tenants, RentWerx will no longer offer any liability, contents, or bodily injury insurance coverage, which were sold to tenants under RentWerx’s Resident Benefits Package. As a result of this cancellation, your monthly payments for the Resident Benefits Package will decrease.
- For landlords, RentWerx will no longer offer the:
a.Damage Assurance Program;
b.Rent Protection Program;
c.Animal Protection Program; and
d.Eviction Assurance Program.
The Commissioner of Insurance has ordered RentWerx to stop collecting any money from you for the above-described insurance products.
If you wish to obtain replacement coverage, you should immediately consult a licensed insurance agent or an insurance company. To find a licensed agent or insurance company visit TDI’s website at www.tdi.texas.gov or call TDI’s Consumer Helpline at 800-252-3439.
