Questions? You’re in the Right Place
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How does Obligo work?
Obligo gives you flexibility at move-in and transparency at move-out.
Instead of paying your full security deposit upfront, qualified renters have options to pay a smaller, non-refundable Obligo fee.
If there are charges when you move out (such as damages or missed rent), your property manager will submit these charges and Obligo will collect the amount from you using any payment method connected to your Obligo account. Property managers can only submit charges up to your original security deposit amount. Obligo clearly shows you all charges immediately—faster and more transparently than traditional security deposit processes.
How is Obligo better than a traditional security deposit?
With a traditional deposit, residents pay a large sum in advance, before there’s any actual reason for charging such an amount. With Obligo, residents only pay for damages or missed rent if your property submits a charge at move-out.
It’s similar to a traditional deposit in that:
- It gives you incentive to take good care of your apartment, because you’re still accountable if there are damage or missed rent charges.
- It preserves your property manager's ability to get cash instantly, as soon as a charge is submitted, as if they had a cash deposit.
- It preserves your right to dispute charges directly with your property or via a small claims court.
Will Obligo show up on my credit report?
In some cases, we may run a soft credit check to qualify residents for Obligo options. The inquiry might appear on your credit report, but it won't impact your credit score.
How do I qualify for Obligo?
Qualifying for Obligo's options is a breeze! We provide three easy options to qualify in-app:
1. With a US bank account, checking or savings, connected with Open Banking
2. With two cards and a soft credit check
3. With two non-US cards and an ID verification
Can I qualify for Obligo with a savings account?
Yes! Renters are able to qualify for Obligo using a savings or checking account.
To better support renters of all financial backgrounds, you can also qualify with two credit/debit cards and a soft credit check or two international credit cards and an ID.
Can I use a debit card to qualify for Obligo?
Yes! You can qualify for Obligo with debit cards that are connected to a bank account. We do not accept prepaid cards.
To use a debit card to qualify, click on 'See All Ways to Qualify' in the application. From there, you will see options to qualify with 'Two cards and a soft credit check' or 'Two international cards and an ID verification.’
You can also qualify for deposit-free living by connecting a US bank account or two cards being a combination of credit, debit, or international cards.
What is Plaid? How does Obligo work with Plaid?
Obligo uses Plaid, but what is Plaid?
Plaid is a 3rd party technology vendor that enables you to securely share data about your bank account with Obligo. Obligo will look at data such as your current balance and balance history to instantly qualify you for deposit-free living. If you don’t wish to share this data, other qualification paths are available to you in the Obligo app.
By connecting to 11,000+ financial institutions around the world, Plaid powers many applications people use today, such as Venmo, SoFi, American Express and Wells Fargo.
While Plaid is actively expanding their network of financial institutions, some banks are not yet integrated.
How does the Obligo Fee work?
Obligo charges a fee for the use of our service, which allows you to skip paying a security deposit or choose from additional ways to fulfill your security requirement.
The service fee is a percentage of your security deposit requirement and is determined by each renter's individual profile. This includes a variety of factors utilized by our machine learning model, including but not limited to a renter’s geography, property type, bank account balance, and security to rent ratio.
It is typically paid upfront for the initial term of your lease (up to 12 months). If you renew your lease, you may be charged a second upfront service fee for 12 months, unless you opt into monthly payments. Renters who chose the "Installments" option will not be charged an Obligo Fee in their second year.
The service fee does not cover any charges your property manager may determine at the end of your lease (e.g. for damages or missed rent).
Because this fee covers the use of our qualification technology and platform, it’s nonrefundable.
Is the Obligo Fee refundable?
Because the Obligo Fee covers the use of our qualification technology and platform, it’s non-refundable.
If I renew my lease, does my Obligo plan automatically renew?
Before your lease-end date, you will receive an email from Obligo asking if you intend to renew your lease.
Whether you confirm renewal or allow the renewal date to pass without taking any action, your Obligo deposit-free plan will automatically renew.
If you do not plan to renew your lease, you must inform Obligo or have your landlord or property manager do so. When you renew, your Obligo service fee will be billed upfront for the new term (up to 12 months). To switch to monthly payments, login to your Obligo account and follow the prompts. This must be done prior to your renewal charge.
Can I pay a cash deposit to my property management company through Obligo?
Yes! If the option is available at your property, you can pay your cash deposit electronically through Obligo. Once you complete checkout through Obligo, the payment will be processed to your property.
What happens when my lease ends and I move out?
If there are no damages or missed rent, you will be notified by email that your Billing Authorization has been released and there’s nothing more to do!
If there are damages or missed rent, your property manager will make charges against your Billing Authorization, and Obligo will advance payment to your property manager.
You then have the flexibility to pay Obligo back for those charges in either a lump sum or in interest-free installments.
Why was I charged at move-out?
Just like the hotel check-in and check-out process, your Billing Authorization with Obligo allows your property manager to charge you for damage, cleaning or missed rent.
You have the flexibility to pay Obligo back for those charges in either a lump sum or in interest-free installments.
Questions about a charge? Please contact your property manager.
When does my Obligo plan expire?
There is no “expiration date,” your Obligo Billing Authorization remains active until your property manager has confirmed and processed your move-out. If you elected for Obligo's Partial Deposit or Installments options your property manager must charge or close your record by the last day a traditional security deposit would have to be returned in your state.
After you’ve moved out, your property manager is responsible for inspecting your rental, entering any charges, and closing your Obligo record. It may take some time for this process to be completed - typically less than 30 days. Obligo does not charge any renewal service fees until 30 days after your initial lease term has ended.
Once your Obligo record has been closed, you’ll receive an email confirmation and your service will automatically end.
I don't see the Obligo offer, what do I do?
If you I don't see the Obligo offer in you property's renter portal, receive an invitation via email, or have already paid your security deposit - contact your property manager!
If Obligo is not currently offered at your property you can refer Obligo to your new property and you may be able to receive a reward if they sign up. Get in contact with us to refer a property or property manager by emailing support@obligo.com .
What is Obligo?
Obligo's holistic suite of deposit solutions simplifies your leasing and accounting operations and improves the resident experience.
Is Obligo a form of insurance or a surety bond?
No. Obligo is not an insurance product or surety bond - we’re the only security deposit alternative whose model utilizes bank-issued Letters of Credit from Wells Fargo to provide you with enhanced protection.
If a charge is submitted for damages or missed rent, our platform immediately initiates ACH payment to the property manager. There are no claims processes required when using Obligo’s service.
How does Obligo ensure I’ll be paid for damages or missed rent?
Once an Obligo record is closed, our platform will immediately initiate ACH payment to property managers for any damage or missed rent charges, up to the Billing Authorization amount. Our automated billing process will then charge the renter's pre-authorized billing method (a credit card or bank account).
There is no claims process, so the advanced funds are guaranteed to your property. Obligo does reserve the right to review charges and/or pause charge payout in cases of suspected fraud or renter abuse.
Does Obligo integrate with my property management system?
Obligo is fully integrated with the leading PMS systems, including Appfolio, Buildium, Entrata, MRI, Yardi and more. Our open API allows integration into any PMS or proprietary leasing software.
Do property management companies go through a qualification process to use Obligo?
Yes, Obligo reviews the property management company’s deposit charge histories to ensure they are in line with industry averages. Because Obligo guarantees payment of charges, we screen for high charge rates to ensure fair treatment of renters and business sustainability. Ultimately, we only work with property owners and managers who treat their residents well.
What’s the adoption rate of Obligo’s service?
When given the option, most renters prefer Obligo's Options over paying a traditional deposit.
The adoption rate for Obligo's Options can be as high as 80% for any individual property.
As a property manager, how do I explain Obligo to my owner?
Obligo-powered deposit-free properties are more attractive to renters and help owners stay ahead of their competition. Obligo provides the same protection as a traditional security deposit, so owners stay protected while residents remain accountable.
Property owners using Obligo’s service enjoy enhanced protection via our Letters of Credit model with Wells Fargo, which covers 100% of the risk of renter non-payment of charges.
What if my resident wants to pay a traditional deposit?
We believe in providing flexibility and choice to residents. If a resident prefers to pay a traditional deposit, our platform can collect and transfer that deposit electronically, and automatically certify and settle those funds to you.
How can I explain the Obligo Fee to my renters?
Obligo charges a non-refundable fee for each deposit-free plan. This fee covers the use of our deposit-free technology, including the qualification process and any payment service fees in the event of charges at move-out.
Selecting an Obligo Option allows renters to forgo paying a large security deposit upfront, and gives them the ability to pay back any move-out charges in interest-free installments.
What if the terms of a resident’s lease change?
It’s easy for property managers to edit resident lease-start and lease-end dates or reduce the Billing Authorization’s size.
Any increase in the Billing Authorization’s size would require consent from your resident prior to being effective.
What if a resident wants to cancel their Obligo plan?
If a resident would like to cancel their Obligo plan and provide a traditional cash deposit instead, you can easily create and send a new Obligo invitation to them.
The resident can then complete the new application and elect to pay a cash deposit. Once the resident provides a replacement security deposit, the property manager can safely and quickly close their Billing Authorization.
When does a resident’s Obligo plan expire?
Obligo requires confirmation that the lease has ended from the property manager in order to release a resident’s Billing Authorization.
Charges are typically made after the lease-end date, after you have been able to assess the condition of the property. We provide you with automated reminders to ensure that Billing Authorizations are released as soon as the unit’s move-out inspection is complete.
Does Obligo require proof of damage before approving charges? How are disputes handled?
No, Obligo does not require any proof of damage in order to process the charge and initiate your payment. However, Obligo does conduct ongoing charge monitoring and maintains a charge threshold to protect against fraud or abuse. A property management company that exceeds the charge threshold may be suspended from inviting new renters to Obligo. Valid charges under existing deposit-free coverage commitments will still be honored.
Just as with a normal deposit, residents retain their legal right to dispute a charge and they may do so in accordance with local laws and practices. As a policy, Obligo does not take sides in disputes and plays no role in assessing the accuracy or fairness of individual charges outside of exceptional cases involving fraud or abuse.
What happens if resident damages exceed the Billing Authorization amount?
At lease end, Obligo will initiate ACH payment for any charges to property managers immediately, up to the Billing Authorization amount.
Obligo does not currently facilitate the collection of any charges that exceed the Billing Authorization amount; you will need to collect any such amount directly from your resident.
How quickly will I be paid for charges?
Obligo’s platform will initiate your ACH payment immediately following your submission of a charge.
We advance 100% of funds once charges are submitted, which we will then collect from your resident directly.
Contact our team to get started!
Trending Questions
How do I qualify for Obligo?
Qualifying for deposit-free living with Obligo is a breeze! We provide several options to instantly qualify in-app.
Is Obligo a form of insurance or a surety bond?
Obligo is not an insurance product or surety bond - we’re the only security deposit alternative whose model utilizes bank-issued Letters of Credit from Wells Fargo.
How is Obligo’s deposit-free service better than a traditional deposit?
With a traditional deposit, residents pay a large sum in advance, before there’s any actual reason for charging such an amount. With Obligo, residents only pay for damages or missed rent if your property submits a charge at move-out.
Does paying the Obligo service fee mean I won't owe anything at move-out?
Not necessarily, since you are still accountable for the condition of your rental unit. Just like the hotel check-in and check-out process, signing up for Obligo allows your property manager to charge you for damage, cleaning or missed rent.
