How to Money · Friday, August 7, 2026
New fintech products marketed as alternatives to traditional security deposits may put tenants in a worse financial position. Host Joel explained that these "insurance" products require upfront payments that are non-refundable, essentially costing renters more than saving for a deposit and potentially leading to disputes.
“There are fintech companies coming down the pike to try to help you out in a way that like where you have to pay less money in upfront, but ultimately it's going to cost you more in the end.”
“These third party services charging you less money so that you can and they'll pay essentially the security deposit on your behalf. But if something happens, like to the property while you're in it, you now there's another party you're dealing with, and at the at the same time, like what you paid them, you never get that back.”
“The National Consumer Law Center dug in and they basically said, hey, these put tenants in a worse financial position when you use when they use products.”