A few popular security deposit alternatives currently in the market are:
Obligo:
Obligo is a “non-insurance” deposit alternative where renters do not pay an up-front security deposit and only get charged if the property manager submits a charge for damages after the lease ends.
Rhino:
Rhino is an insurance agreement between renters and property owners. It protects property owners against unpaid rent and any damages that would normally cause money to be deducted from a cash security deposit. Tenants who have already paid a security deposit can still sign up for Rhino and get their security deposit amount refunded, which may help many residents at this time.
Deposit Waiver Concept:
This concept involves the resident paying a non-refundable security deposit waiver fee on a monthly basis in addition to their monthly rent. Recently, Todd Ortscheid with GTL Real Estate signed a new lease with a tenant that agreed to pay a non-refundable $120/month security deposit waiver fee instead of a refundable full month’s security deposit up front. The rent on the unit is $1,995/month so within 16 months the resident would have paid a full one month deposit. Their average resident stays in their homes for over double that time, so even after move-outs and repair costs they would turn a profit.
This concept may not work for all residents, but it can work for some. Todd goes into deeper detail on this particular method in his Fee Maxing course at PMAssist.com.
