Focus on Security Deposits

U.S. Security Deposit Requirements for Renters with Less Than Perfect CreditPart 1 of 3 in a series looking at challenges for renters with less than perfect credit via Credit Sesame.

U.S. Security Deposit Requirements for Renters with Less Than Perfect Credit

In the first half of 2015, average apartment rents in the United States were estimated to increase 5 percent, continuing a multi-year trend of rent increases in most major metros across the country. While unemployment had dipped down to 5.1 percent by the mid-year mark, wages remained relatively flat. As a result, housing affordability for the 65 million Americans that opt for rental housing has become a greater financial burden, particularly for the large numbers of individuals and families for whom rental screening results in requirements for increased security deposits as a supposed means for rental communities to offset future payment risk associated with lower credit scores.

Rent increases naturally follow from broader market demand for apartments and apartment investors have continued to benefit from depressed home sales resulting from the recent recession. But when rent growth widely outpaces wage growth, greater numbers of would-be renters find it more difficult to qualify for an apartment lease that is—in essence—an annual financial obligation representing thousands or tens of thousands of dollars. In fact, rent often represents the largest and most significant monthly bill payment that working Americans strive to make.

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