When rents keep jumping as they have, it gets harder for many people to afford a new apartment. The flip side is that if tenants can't rent, multifamily owners and operators can't lease out property, making it more difficult to bring in the money necessary to run a business.
Security deposits complicate the situation. Depending on the state and city, property owners might require anywhere from $50 to an unlimited amount, though the more common figures seem to be one to two months. The higher the amount, the harder it is for the tenant to make that initial payment.
Some tech companies are looking for ways around the issue, to reduce or eliminate the need for a security deposit. Drop that third month, if you can without heavy risk, and the apparent price of a move-in is lower, making a property more affordable. Plus, there may be no need for escrow accounts, interest reimbursements, or other activity that costs the owners or managers time and money.
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