We make NO Security Deposits a Reality with Obligo

A security deposit is a one-time fee that is collected by most landlords. Usually, they charge up to three months’ worth of rent: that is the first month, last month, and security. Other terms for a security deposit are last month’s rent, advance deposit, or cleaning deposit. However you call it, security deposits are important because it guarantees that the tenant will fulfill the terms of the rental agreement and will leave the unit in good condition. But did you know that not charging security deposits is possible?

State laws on rents and security deposits

In Massachusetts, landlords can even charge $250 for the key changeover. Rents are high actually across the US cities like San Francisco, New York especially in Boston.  Although most landlords do require security deposits, we at Green Ocean Property Management have two major ways to make no security deposits a reality while still protecting our landlords.

#1 We give tenants a time schedule to pay. 

Let’s pretend a tenant is looking for a $3,000 worth of apartment but the ones on the market are ranging from $10,000 and up. That’s too pricey for a regular renter. Some landlords will require tenants to pay this fee when they sign the lease, so imagine having to pay $10,000 upfront. So, we will give tenants a time schedule to ensure they can still pay the security deposit without being too harsh on their wallets.

Flexible Repayment Options for Tenants

If a renter happens to owe money at the end of their lease—whether for damages or outstanding balances—they aren’t left with a massive, immediate bill. Instead, tenants have the option to repay any charges in simple, interest-free installments. This approach eases the financial burden and gives renters flexibility, making the end-of-lease process much less stressful for everyone involved.

2# We offer an option to waive security deposits with Obligo.

Tenants can opt to pay through Obligo, an online application that is much like a hotel. They precharge on your credit card to make sure that if you take something from the mini bar, or if you damage the property, they can charge it back on your credit card.

It’s not an insurance product—you’re still responsible for any charges at the end of your lease, just as you would be with a traditional security deposit. The key difference is flexibility: instead of parting with a lump sum up front, you can pay back any charges in interest-free installments if needed. And if you disagree with a charge, you still have the right to dispute it directly with your property manager, just as you would with a regular deposit.

To live without a deposit, simply provide a qualifying payment method through the Obligo platform. Obligo allows us to make sure that there is a portion charged to the credit card and bank account. If there is $3,000, they make sure that there are a thousand dollars on your credit card and a thousand dollars in your bank account. Obligo’s technology allows these instead of having to put a security deposit of $3,000 down. Furthermore, they charge only a small percentage to tenants; for example, if they charge 10%, tenants will just pay $300 for not being able to pay $3,000. Tenants might not get that money back but $300 is much easier on their finances.

In addition, it is easier for property managers because we no longer have to follow the same rules and guidelines for security deposits. If we feel like the tenant-applicant is a great candidate, maybe we don’t ask them to pay for that first month upfront. Imagine a tenant moving into our apartment, maybe they just pay one month upfront, hold the apartment, pay the $300 using Obligo, and then they pay a dollar one month when they move in on the first month. These steps make it a lot easier for tenants to pay without security deposits, resulting in higher demand for occupancy and an easier way to rent.

Is a No Deposit Service Like Insurance?

It’s a common question: is using a no deposit alternative just like having insurance? The answer is no—they work differently. With insurance, you’re typically protected against potential damages or losses, and a policy steps in to cover the costs.

With no deposit services, you’re still responsible for any damages or unpaid rent, just like you would be if you paid a traditional deposit. The key benefit here is flexibility. Instead of handing over a large sum at once, you can cover any owed amounts in manageable, interest-free payments if issues arise.

So, while no deposit options make moving in much easier on your wallet, they don’t shift your responsibilities—just how you handle them.

What if there’s damage or missed rent with a no deposit option?

You might be wondering—how are damages or unpaid rent handled if you didn’t put down a traditional security deposit? Here’s how it works: instead of holding onto your cash, we simply place a hold on your credit card or bank account through the Obligo platform, much like a hotel does when you check in.

If everything looks great when you move out—no damage, no unpaid rent—no charges are made, and the hold is released. However, if there are any issues, such as damages or outstanding rent at the end of your lease, the property manager is authorized to charge your chosen payment method for the necessary amount (up to the agreed limit). This way, tenants have peace of mind knowing they aren’t parting with a large sum upfront, and landlords still have financial protection in place.

This process offers flexibility for everyone, making move-in easier and keeping things fair and transparent.

Can renters dispute move-out charges without a deposit?

Absolutely! Even if tenants choose a no-security-deposit option, their rights don’t disappear with the deposit. Just like with traditional deposits, tenants still have the ability to review any charges made for damages or extra cleaning when they move out. If a renter feels a charge isn’t fair, they can raise concerns or dispute it directly with us at Green Ocean Property Management. We’re here to ensure transparency, whether you’ve paid a deposit upfront or used a service like Obligo.

Our commitment

If you or anyone else you know needs help in protecting landlords with no security deposits, please think of Green Ocean Property Management: where you get more than a property manager, you get peace of mind.