A few popular security deposit alternatives currently in the market are:
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 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.