New Executive Order in NJ: Using Security Deposit to Pay Rent

[Shain Ismailovski]

Gov. Murphy announced today that he has signed an Executive Order that will allow tenants to use the security deposit as a rent payment. Curious to know everyone's thoughts on this and how the EO will effect your business? 

https://abc7ny.com/rent-security-deposit-phil-murphy-coronavirus-nj/6127590/

[Joe Martella]

@Ron Brady

Rhino is basically a security deposit insurance policy.  It leaves a lot to be tracked.  What happens if the tenant stops paying the policy in the middle of the lease.  You are no longer covered and you have no insurance.  If there are damages to the unit then you have to deal with an insurance company to remit payment for repair.  That would take forever to get done.  I don’t think I like it.  The benefit is totally in the tenants’ favor here.