Cincinnati landlords cant ask for security deposits anymore!

[Justin B.]

A “renter’s choice” city ordinance — requiring landlords to accept renters’ insurance and other alternatives to a cash security deposit — passed last week by Cincinnati City Council was featured in a weekend article by the Wall Street Journal’s Will Parker (paywall). The article quotes Councilman P.G. Sittenfeld, explaining the rationale of the legislation he sponsored: “For a significant number of people living in Cincinnati, a security deposit for a two-bedroom would equal or exceed the totality of their savings.”

https://www.wsj.com/articles/s...

[Nathan Gesner]

Your headline is false. Landlords can still have "security deposits" but they have to limit the amount or provide alternatives:

1. Traditional deposit but made in payments;

2. Deposit "insurance" where the Tenant pays a small, non-refundable premium each month; or

3. Reduced security deposit of no more than 50% of a month's rent.

I see the writing on the wall and am already heading this direction. Starting next month, I will be offering my tenants a deposit alternative. Instead of a $1,500 deposit up front, Tenant can opt to pay a monthly fee of $10 and Obligo will ensure protection of up to $1,500 for me as the Landlord. If the tenant causes $800 in damages, I file a simple, online claim with Obligo and they pay me the $800 with no questions asked, then they pull the $800 from the Tenant's bank account or credit card.

All my applicants are given a score and that score determines how big of a deposit they pay. If they are low-risk, they pay a 1x deposit while high-risk pays a 2x deposit. Paying $1,000 for first month's rent and $2,000 for a deposit is difficult for most anyone. If they could instead pay $1,000 for first month's rent and a $15 monthly fee, suddenly it's affordable for a lot more people. I can rent the property and still get the same level of security as a traditional deposit. I'm also making it easier for tenants to move into my rentals which makes my rentals more desirable and will reduce vacancy time.

If anyone's interested in learning more, send me a private message.