NEW YORK, Oct. 28, 2021 /PRNewswire/ -- Rhino, the leading real estate technology company, today announced new findings that analyze the economic impact of savings returned to renters that would otherwise be cash locked away as a security deposit. More than $45 billion worth of security deposits is sitting in escrow accounts nationwide that could be unleashed for consumer expenditures. The findings indicate that Rhino is in a position to help the country's current housing crisis and help stabilize individuals' personal finances.
To date, Rhino has saved renters $500 million since 2017, allowing renters to keep the money that they would otherwise need to cover an upfront cash security deposit. To better understand the economic impact this has, Rhino worked with FTI Consulting - one of the largest and most well renowned global financial consulting firms - to trace the flow of dollars through the economy. The report analyzed the total effect on various metrics including employment, output GDP, and tax revenue. FTI's findings revealed that the economic impact of freeing up $500 million for renters by replacing a cash security deposit with a Rhino policy was significant and resulted in:
- $1.2 billion in new sales output
- $634.5 million increase to GDP
- 6,660 new jobs
- $58.4 million in state and local tax revenue
- $79.7 million in federal tax revenue.
Most importantly for the many Americans struggling in the pandemic, this increase in economic activity resulted in $380.8 million in additional labor income through wages, salaries, and benefits.
"Upfront, cash security deposits are just another hoop for renters to jump through in an already complicated and competitive rental market. Through our security deposit insurance, we put money back in the pockets of Rhino renters, which increases their budget, and subsequently, consumer spending," said CEO and Founder of Rhino, Paraag Sarva. "These findings, in tandem with the anecdotes we've heard from Rhino renters, indicate that we are on our way to a future without traditional, cash security deposits."
Rhino's security deposit insurance is now offered in 1.6 million rental units across the nation. By paying a small monthly fee, as low as $4, Rhino insures the property owner for damages and lost rental payments that might occur. Over 125,000 insurance policies have been written for renters in 2021 alone, and this number is expected to grow as security deposit insurance becomes more widely recognized and the housing market recovers from the impacts of the COVID-19 pandemic.
Property owners who offer Rhino attract renters by offering "deposit-free" rental units, and Rhino's integrations with property management systems enable property managers to seamlessly and securely invite new renters to replace their cash security deposit with security deposit insurance. The Rhino platform offers the most integration options of any security deposit insurance provider, including Yardi Voyager, RealPage (OneSite and On-Site), Entrata, Rent Manager, Salesforce, and MRI.
Rhino is the preferred choice for NMHC Top-50 owners across the country. Rhino is proud to partner with top management companies nationwide including Highmark Residential, UDR, Inc., Lincoln Property Company, Towne Properties, Peak Living, Roscoe Property Management, Echelon Property Group, and more.
Rhino was founded to give renters everywhere greater financial freedom to plan and enjoy their lives. We eliminate the need for traditional security deposits by replacing them with smart, affordable insurance so renters can maintain control of their cash. Instead of a large upfront cash security deposit, renters pay Rhino a small monthly fee, and Rhino insures the property owner for damages that might occur and lost rent. To date, we are offered in over 1.6 million homes, and we have saved renters over $500 million in cash.