Fintech Obligo has said it is now using letters of credit (L/Cs) from banking giant Wells Fargo to back its security deposit alternative for landlords and tenants.

With the security deposit alternative, tenants do not have to pay a deposit when they rent a property. Instead they can provide one or more billing authorisation method such as a bank account or credit card which Obligo monitors to ensure that they would be able to repay any end-of-lease charges for damages or unpaid rent.

Enhanced protection

The New York based rental management platform says it is now offering the only security deposit alternative utilising bank-issued L/Cs to provide landlords and tenants with security, flexibility and ease of transaction.

Landlords and property managers can now benefit from the enhanced protection provided by the L/Cs.

Harnessing technology

Obligo says it harnesses financial technology to build trust between tenants and landlords, with the aim of making the property rental process as simple as checking in and out of a hotel.

The company's suite of solutions now includes free certified electronic move-in payments, flexible credit-backed deposit alternatives and automated electronic deposit refunds.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.