TheRealDeal: City formalizes push for security deposit alternatives

Obligo in The Real Deal: New York City formalizes their push for security deposit alternatives, following a nationwide trend in deposit regulations. 

Last year, Mayor Bill De Blasio announced his plans to offer New Yorkers an alternative to the traditional security deposit model, specifically for renters in city-financed affordable housing. A large upfront security deposit payment has proven to be a roadblock for many prospective renters. With millions of renters nationwide facing unemployment as the pandemic continues, this issue has been magnified. 

“Security deposits create barriers to mobility for too many New Yorkers. Providing alternatives to these burdensome requirements is an important step towards creating a fairer and more equitable city,” said New York City Housing Development Corporation (HDC) President Eric Enderlin. “We look forward to advancing this initiative to make it easier to obtain a safe, secure, and affordable home.”

Critically, security deposit alternatives do not increase exposure for landlords. Obligo provides a platform to return deposits safely and securely, ensuring landlords can recover expenses after a renter moves out.

As reported by The Real Deal, “some estimates peg New York’s rental arrears at as much as $3.4 billion. The increased pressure on renters and landlords to keep the rent, mortgage and tax payments flowing could bolster the city’s push to take advantage of the startups’ offerings.”

As the only non-insurance deposit alternative, Obligo’s credit-based model keeps landlords secure and renters accountable by combining Open Banking technology and AI-based underwriting. At Obligo, we believe that deposit-free renting will become the new standard, while conventional deposits will gradually become obsolete.

Are you a property owner? Schedule a demo today and learn how Obligo can help fill your vacancies faster.

 

Posted By Team Obligo