One startup wants to improve the renting experience for both tenants and landlords by eliminating security deposits, reports Tech Crunch.
Rhino intends to accomplish this by offering an insurance policy to landlords that would cover possible damages the security deposit would normally cover.
Either current or new renters can use the system. If you are submitting an application to live in a unit, you can use Rhino’s service to avoid paying a security deposit, or if you rent at a building supported by Rhino, your deposit can be refunded in full if you sign up.
The cost is an average of $10-$20 per month, with a specific price varying based on your monthly rent and required deposit, yearly income and other factors of this kind. An average experience might be users paying $19 per month to skip the deposit on an apartment that rents for $2,500-$3,000 per month, with that fee, often being “significantly” cut down the second year after Rhino has established that you are a trustworthy renter.
Founder Paraag Sarva created Rhino, which was funded and incubated by Kairos, a $25M venture fund that invests in building solutions to real-world issues that challenge the middle class. This service is not a substitute for renters insurance, and Rhino has made it clear that tenants are still responsible for any damage they do. The startup is launching with backing for 21,000 units in New York, ranging from rent-stabilized buildings to luxury apartments.