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…
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.
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.
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.
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.
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