Security Deposit Alternatives: The Misleading Marketing of Renter s Choice
Dozens of cities and states are considering legislation allowing alternatives to upfront security deposits, such as security deposit insurance. The only problem? It s not actually insurance. December 17, 2020, 11am PST | LM Ortiz Share
In January, Cincinnati became the first city to pass a Renter s Choice law, which requires that landlords accept alternatives to the traditional lump-sum security deposit. Atlanta followed suit in early October, and elected officials in at least 10 other cities and states across the country, from Alabama to California, have proposed similar legislation.
On the face of it, allowing alternatives to upfront security deposits should be a good thing. As many housing advocates know well, high upfront moving costs act as a barrier to securing affordable housing for low- and middle-income renters, and can even keep people homeless. When you include first month’s rent,