(See update at bottom of post) The City of Cincinnati is considering legislation that would require landlords to accept so-called security deposit insurance in lieu of a security deposit. According to CBS News, the newly introduced legislation would supposedly “free renters from having to hand over a large lump sum and instead direct landlords to accept a security-deposit insurance policy as an alternative.” In addition CBS says it could make Cincinnati the first city in the nation to require their acceptance by landlords. The timing is especially interesting as Cincinnati recently enacted a series of laws making it tougher for evictions. National REIA’s Charles Tassell (who also represents the Greater Cincinnati Northern Kentucky Apartment Association) pointed out that Cincinnati has around 82k total rental units most of which are managed and owned by families. Indeed….
“A lot of the property owners take installments already because you have to work with people sometimes…But mandating those options has a lot of unintended consequences.” Said Charles Tassell, Chief Operating Officer of National REIA.