Security deposit-free rentals - Would you use this service?

[Sam Mitchell]

This new startup, called Rhino, is launching a new insurance product for landlords that claims to negate the need for security deposits. In theory, this will make listings more appealing and cut down on the hassle of cash transfers. The company also claims to be helping renters who often struggle to afford security deposits.

I think it's a pretty cool idea. As a landlord, would you consider using this product in lieu of security deposits

[Jennifer T.]

Interesting.  But I would need to see substantial, unbiased reviews on this.

Quite frankly, the insurance industry as a whole has a poor record for treating customers fairly and paying appropriate amounts.  I'm suspicious that, in order to claim any damages, there would be a lot of red tape involved and possibly impossible requirements.  So they can just keep on collecting their monthly fee and rarely pay anyone out.  (Not a review, not familiar with this company).

I'd also worry they would just disappear one day and now I have a bunch of tenants with no security deposit on the books and now I have more risk.

I'd also be worried that tenants who don't have any "skin in the game" would be less careful, abuse the property more, and leave it a mess when they leave.  Because, "Whatever, my LL can get money from that company I've been paying all this time."