It can be hard enough to find a new place to live, but coming up with the money for a security deposit can be next to impossible for some people. That's why 5 Star Property Management has partnered with a company that offers a deposit-free service.
With this service, you can move into your new home without having to worry about saving up enough money for a security deposit. You'll be able to start your new life without any extra stress.
In this article, we will provide an introduction to billing authorizations and how they can benefit you.
What is a Billing Authorization?
A billing authorization is a tool that allows you to authorize specific payments for goods or services. This authorization provides a guarantee that the funds will be available when the payment is processed.
Billing authorizations are commonly used in business-to-business transactions, where the buyer needs to ensure that the funds are available before placing an order.
Why Use a Billing Authorization?
There are many benefits of using a billing authorization tool, such as Obligo.
1. What are Billing Authorizations?
Billing authorizations are also known as bonds.
Obligo works similarly to a hotel check-in process.
You'll be extending a billing authorization to one or more payment methods, allowing your landlord to charge you up to the security amount. This allows you to avoid paying the entire security deposit upfront.
Obligo is not an insurance product, and you will remain accountable for damages, missed rent, or other obligations under the lease. If there are any such charges, you will be responsible for paying those amounts back to Obligo.
Key Quote: "Billing Authorizations are authorizations to existing credit in the form of the rent you have paid on time so you don't have to pay an extortionate security deposit.
2. How Does Obligo's Deposit-Free...
At 5 Star Property Management, we understand that paying a security deposit can be a major hoop to Jump through. That's why we have partnered with Obligo to offer qualified renter's the ability to skip a security deposit and live deposit-free. If you are interested in skipping a security deposit, we ask that you complete and submit the renter's application found at https://5starpropertymanage.managebuilding.com/Resident/apps/rentalapp/.
We will only receive Authorization which we can charge towards your Account, provided:
- Your application is approved
- You are verified as legitimate
- Your application is live billable.
3. If you end up with more than the monthly term.......?
If you decide that you will be outstanding for more than a monthly term, simply pay the security deposit immediately upon the end of your tenancy. The property manager will add the remaining balance to the next month’s rent.
This service can put the burden on your back for a small amount, which is why we allow properties to hold off paying the full security deposit, thus allowing tenants to choose if they would like to pay the total security deposit that is due or some for the security deposit.