Why More Renters Are Choosing to Skip the Security Deposit

Moving is expensive. Obligo can help.

The average security deposit in a major U.S. city runs one to two months' rent, due upfront. For many renters, that’s on top of the first month's rent, broker's fees, moving costs, utilities, and every other cost that hits you at once. 

Obligo offers a different way to handle this requirement to help alleviate some of that burden for you. Instead of handing over a lump sum that sits locked in an escrow account for the length of your lease by default, you get flexible options to secure the lease. No certified check. No waiting months to get your money back. No stress.

Here's what that looks like in practice.

How Obligo Works

No Deposit - Skip the upfront deposit entirely. Obligo provides the financial backing your landlord needs, and you pay a fractional fee instead of a lump sum. The bulk of your cash stays with you from day one.

Full Deposit - Pay a full deposit through Obligo and earn up to 2% on the funds while they're held. No fee, and your money works for you during your lease. A strong option if you have the cash, but want it to do more than sit in an escrow account, and want an electronically refundable option for move-out.

Choose to Keep More of Your Money at Move-In

This is the core of what Obligo does, and it matters because most current renters admit to underestimating their move-in cost.

When you don't pay a security deposit, that money stays in your pocket. Renters tell us they use it for all kinds of things: new furniture for the apartment, broker's fees, moving costs, or just the breathing room that comes from not draining your savings account in a single week.

One renter, Tanya, put it simply during a recent feedback session:

"I have two little ones, and the move allowed us to be able to spend money on other things. We got both of the girls' new bedroom sets, which we would not have done had we not [used Obligo]."

Another renter in the same session used her savings to cover an Airbnb in the week she was between apartments - a gap that would have otherwise meant real logistical stress.

Moving is already one of the most cash-intensive moments. Obligo is built around the idea that you shouldn't have to be cash-strapped just to get your keys.

Everything Is Digital - From Qualification to Refunds

Signing up for Obligo takes minutes and happens entirely online. No waiting in line at a bank, no cashier's check, no certified funds, just a quick electronic qualification process.

Once you're in, everything stays digital:

• Itemized breakdown if any charges come up at move-out
• Account access so you can see your status anytime
• Electronic refunds - no waiting weeks for a check

For anyone who has ever chased down a security deposit return, you know how frustrating the old process can be. Obligo removes that friction entirely.

If Charges Come Up, You're Not Alone

Here's a concern we hear from renters considering one of our plans: What happens if my landlord charges me for something at the end of my lease?

It's a fair question. A few things worth knowing:

You have support. Obligo's in-house support team works directly with renters to help them get context and explanation from their property managers about any charges. You don’t have to navigate that conversation alone.

You have options. If an amount is owed, Obligo offers flexible, interest-free installment payment plans for our no-deposit renters. You don't have to pay for everything at once. You don't get hit with interest. And you have time to manage it on your terms.

A security deposit doesn't actually protect renters from charges, it just pre-funds them. Obligo replaces that with something better: transparency, support, and flexibility when it counts.

You're Renting Through a Vetted Network

Not every property manager qualifies to offer Obligo. Before a landlord can work with us, they go through a qualification and training process specifically designed to support fair treatment of renters. That includes a review of their past security deposit charge patterns.

After they're onboarded, we continue to monitor for any abuse.

This matters because the security deposit system, in its traditional form, can have real problems: charges that aren't itemized, funds held past legal deadlines, disputes that go nowhere. Obligo's network is built to be different. When you rent through an Obligo-affiliated property, you have some assurance that the process on the other end has been designed with renters in mind.

Is Obligo Right for Every Renter?

Yes. Obligo isn’t just an alternative to an upfront security deposit, it's a better way to manage security requirements, with options designed to benefit every renter.

For renters who choose a no-deposit option, that can mean keeping more cash available for moving expenses and other priorities instead of locking it away for the duration of a lease. And for renters who prefer a full refundable deposit, Obligo makes that experience better too: deposits can be handled electronically, without the hassle of paper checks, while earning interest over the course of the lease.

Whether a renter chooses to keep their cash or put down a refundable deposit, Obligo brings more flexibility, convenience, and value to a process that has traditionally offered very little of those benefits to renters.

Moving soon? Check whether your building or property manager offers Obligo and keep your cash where it belongs: with you.

See if you qualify for Obligo's No Deposit plan →