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NYC is a land of opportunities and people come from all over the world to materialize their dreams. It means that there is a huge potential as well as competition in the rental sector. Authorities have laid down effective laws to regulate the rental sector. One of the many requirements is a security deposit. It is the major contributing factor in higher closing costs.
Living in NYC is quite expensive and managing deposits is even harder not even including the agent’s fee and moving cost. It becomes hard to manage everything right then and there.
For more than half of the potential renters, paying a deposit upfront remains a daunting task.
In simple words, it is an amount that a tenant has to submit to the landlord or management company at the time of striking a deal. The amount differs in different states and most of the time it is equal to one month’s rent.
It adds a security layer for the landlord for any damage inflicted to the property. Other than that the security deposit is refundable towards the end of the lease. The landlord cannot use the security deposit for personal purposes.
Since most of the tenants can’t arrange the security deposit upfront, some companies would do that on the tenant’s behalf for extra charges. The process works like doing insurance and companies guarantee the landlord to compensate for the damages in case it happens.
They work as a third party and vouch for the tenant while the tenant has to pay a small fee on monthly basis for the agreed terms. The cost of the damages will be paid back to the landlord. It saves the tenant from the burden of arranging a security deposit upfront.
Jetty is a local start-up that works to ease the lives of New Yorkers. They assist the potential tenant in their style. They ask for 17.5% of the security deposit from the tenant regardless of how big or small is the amount. There is no application fee.
However, the restriction is that you would only be able to get the offer only if you get the apartment through the recommended brokers by Jetty. If the tenant wants to upgrade the house, charges can be adjusted given that the new apartment is in the same building.
Note: The one-time fee is not refundable like every other company.
Rhino is very popular with landlords as it is launched keeping landlords in mind. It is a local start-up. The landlord may ask the potential tenant to take a Rhino policy instead of depositing security. The tenant may subscribe to a monthly program that would be highly affordable for an average tenant. It starts from as low as $3 for an apartment with $1000 monthly rent up to $25 for an apartment of $3,000 a month
In simple words, instead of a renter paying cash for the security deposit, the landlord can offer the tenant to take out a Rhino policy. It is a kind of insurance where the company would take care of any damage against monthly charges.
It is highly affordable for tenants as they do not have to worry about the upfront security deposit.
LeaseLock has a vision beyond security deposit and aims to make life easy for rentals to the best of their capacity. They have made the process highly convenient for their customers. They take care of the security deposit burden and quickly move in the tenant to the new apartment.
Once you sign up with LeaseLock, they do not ask for additional requirements of separate application fees and just cover your security deposit.
The flip side of LeaseLock is that it is expensive and the algorithm determines the risk factor which may increase the monthly installment from standard to a hundred dollars. Additionally, you have to take the property from a management company or landlord who has partnered with them which means a limited market for you.
ePremium eDeposit is the leading company that steps forward to assist the tenant. They extend the offer of a reduced security deposit. They charge between $250 and $400 depending on the amount of the security deposit. The process to get approval is extremely friendly which makes it a popular option among tenants.
In addition to it, if you happen to decide to upgrade your home, you may adjust the current fee in the new charges. They offer customized packages as well such as for pet damage liability. To avail of all these facilities, the tenant has to sign up for the ePremium eDeposit rental insurance program.
Assurant SureDeposit has no difference from ePremium eDeposit in services and features but is a lot more affordable and cheaper than the former. They cost below $200 to cover the full security deposit for the duration of the lease regardless of time. To get the benefit of the offers, one must be a participant in the deposit programs.
Landlords are not always welcoming about the idea of getting security deposit insurance instead of a security deposit. It would be a hustle for the tenant to convince the landlord to accept the conditions. You may look up to other companies to have a better insight into the market.