The world of renting and property management undergoes significant changes every year. And every new year, RETCON highlights the technologies, ideas, and opportunities that continue to propel our industry forward. At their 2020 event, Obligo co-founder Omri Dor explained Why Security Deposits are Going Away.
The traditional cash security deposit poses many problems for both property managers and renters, even more so as regulations change rapidly. Some states and cities require landlords to refund security deposits within 14 days of a tenant moving out. To comply with this deadline, property managers need to work overtime to get deposits back in the hands of their renters. Even with on time deposit refunds, incorrect forwarding addresses and uncashed checks can lead to non-compliance (through no fault of the property managers!). The easiest way for managers to comply with these refund deadlines: don’t take a cash deposit!
Competition is another force driving renters away from the conventional cash security deposit. Renters are now, thanks to technology, quickly able to view and analyze rental listings in their market. As renters are able to more efficiently understand their options, the amenities race has heated up. By providing a deposit-free option, property owners are able to maintain their competitive edge.
As the only non-insurance deposit alternative, Obligo’s credit-based solution keeps landlords secure and renters accountable by combining Open Banking technology with AI-based underwriting and collection capabilities. Owners and managers use Obligo to make their listings more appealing to renters, streamline their operations, comply with changing regulations, and incentivize renewals.
Interested in learning more? Schedule a demo with us today.