Risk & Compliance

There is zero risk for both the tenant and the owner/operator.

Every rental deposit is held in cash in the resident's Whale account, which is SIPC insured (see Form ADV2A on our website footer), protecting each individual account up to $250,000.

As a Registered Investment Advisor (RIA) governed by the SEC, Whale can't take principal risk on the rental deposit because we have to guarantee the funds back to the owner/operator if there are damages or the resident breaks the lease.

Every rental deposit is locked during the lease so it cannot be withdraw by the resident. Whale will only release the deposit after receiving a move-out statement from the landlord and deducting any move-out charges specified.

Whale also removes the burden on the owner/operator from dealing with the compliance and regulations around traditional security deposits. The laws requiring deposits exist because residents give their money to owners/operators. However, with Whale, residents' money remains in their name, eliminating the need for traditional deposit regulations.