Anyone Using Rhino as an alternative to tenant security deposit?
Investor · Anchorage, AK · Member since 2015 · 267 posts · 76 votes
Anyone Using Rhino as an alternative to tenant security deposit?
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y@Ronda R. @Eric James @Jay Hinrichs @Warren A.
Just a follow-up.
Rhino is insurance. Pay the monthly charge, they cover losses. They do try to go after the Tenant to recover what they've spent, but they don't have direct access to tenant funds.
Obligo is a "billing authorization" which means the Tenant gives them access to a bank account and a credit card. When there are charges, Obligo pulls the funds from the Tenant's bank account or credit card. If the Tenant has a dispute, they fight with the Landlord, not Obligo. If the Tenant shuts down their accounts, Obligo still pays the Landlord and takes responsibility for going after the Tenant to recover the funds.
How does it work? Landlord determines the amount they want coverage for, typically the same as a traditional deposit. Obligo charges a monthly fee based on the dollar amount and Tenant's credit score. The Tenant charge is somewhere around $10 - $20 per month, so it's easy for the Tenant to absorb. If there are charges, Obligo pulls from the Tenant's account and makes the Landlord whole. The only time Obligo loses is when the Tenant shuts down their account, but they've told me that happens 1-2 times a year out of tens of thousands of accounts. Tenants just don't think about it.
When you hold a large deposit, many tenants automatically write it off. They try to use it as last month's rent or fail to clean because they assume the Landlord is going to keep the deposit anyway (far too many Landlords do). When the Tenant has a billing authorization, they abide by the lease because they know you can take more money from them. They can't demand you apply the deposit to last month's rent. They won't leave the house filthy because they know it will cost them money out of their account. It psychologically changes the game and puts pressure on them to behave.
How does Obligo make money? If the average monthly payment is $10 and they have 10,000 renters signed up, that's $100,000 a month or $1.2 million per year. They collect almost all of the claims from the Tenant's bank account. They could lose $500,000 per year and still earn $700,000 per year. I suspect their numbers are even better than that.
The DIY Landlord Book4.7247 Reviews
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@Ronda R. I have 15 and around 8 of my tenants use it. I started using them around 2 years ago so I don’t know if they would still work with me today if I didn’t have residents with policies. I have made a few claims, so it’s definitely been helpful to have the higher limits.
I have seen more residents get denied - I don’t know why but I can’t imagine it’s good.
- 3yTroy BaileyPro Memberclayton, NC · Member since 2017 · 99 posts · 38 votes
Quote from @Tricia O'Brien:
@Ronda R.
So can you currently purchase Rhino if you have fewer than 5 units?
I believe so I only have one tenant using it currently
- Member since 2023 · 1 post · 0 votes3y
This company is a total scam that takes advantage of young renters. Just read all of the comments on their posts and you will soon realize that they are criminals,.,taking money unlawfully from people and refusing to answer phones, emails, chats, etc.
I was a landlord using the service and initially I thought it was great. Until the tenant stopped paying the monthly premium in which the policy was cancelled. I had a tenant in a property now with no deposit. I did remove them but there was 2000 in damages. Rhino simply said their policy was cancelled. If i had an actual deposit - I would have had something to cover the damages.
We have been using Rhino for ~2 years now. In that time we have filled 4 claims. We have been paid 4 times. The total payout from Rhino to date is over $9K. Rhino has started asking for more "proof" that the renter met internal policy and screening conditions.
That being said, Rhino has started denying more applicants. I suspect their criteria increased to re-alight with risk.
The next question is often WHY we use Rhino. I read someone say "worst idea ever!"
We use Rhino for 1 reason > It increases the amount of money we COULD get if something goes wrong. It is difficult to ask tenants for 3-4X months' rent as a deposit. Most people don't have that kind of money. Today's repair costs, eviction costs, set-out costs, and lawyer costs, are more than what 1-2X rent would cover. It takes much longer to evict and while they live rent-free you get nothing.
Sure they eventually get evicted, but if they owe 2 months' rent + legal fees + set-out fees + damages, etc. that measly $2K that was collected as a security deposit doesn't cover the total loss.
For the same amount of 1X-2X cash deposit, we can get a Rhino policy for 3-4X the coverage.
- 2yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
@Mel Cook an earlier poster said that when the tenant stopped paying rent they stopped paying the Rhino premium so how do you collect for an evicted tenant. I assume they would also stop paying the premium.
Rhino gives a ~60-day window to file a claim after a tenant moves or stops paying Rhino.
A question we grappled with internally was what to do if (when) a tenant loses Rhino while they still are a tenant. It has not happened, but it could.
We added lease language to say a cash security deposit must be on file or a security deposit policy in effect, or we can terminate the lease. This would solve the issue of them losing Rhino (for whatever reason) while they were a tenant, or if for some reason Rhino did not approve them for a second year.
The last time we filed a Rhino claim (~90 days ago), a tenant who was being evicted for non-payment of rent told Rhino they moved and wanted to cancel their policy. We told Rhino they had not moved and provided proof of the eviction. Rhino denied their cancellation request. Once they were evicted, we filed for the full $3900K policy and had the money in our bank account within 36 hours.
~2 years ago I believe Rhino allowed people to pay monthly. Now I think the only option is yearly payments.
- Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes2yAre you still using Rhino? Still like it?
Quote from @Patrick Pendley:
WE are now using it, but I have not had to make a claim yet. Tenants really like the option.
- 2yJosh CissellBusiness MemberProperty Manager · Oxford, MS · Member since 2017 · 37 posts · 19 votesWhen they quit paying, you should have used their next rent payment to cover the security deposit, then filled a claim for lost rent against the Rhino policy. Even if they're paying monthly, you should be covered for that year.
Quote from @Gary Hall:
I was a landlord using the service and initially I thought it was great. Until the tenant stopped paying the monthly premium in which the policy was cancelled. I had a tenant in a property now with no deposit. I did remove them but there was 2000 in damages. Rhino simply said their policy was cancelled. If i had an actual deposit - I would have had something to cover the damages.
Cissell Management Co., LLC4.997 Reviews - 2yJosh CissellBusiness MemberProperty Manager · Oxford, MS · Member since 2017 · 37 posts · 19 votesIt seems that Rhino is having cash flow problems. There are multiple reports of them approving claims but taking several weeks to pay. I would not use them.
Quote from @Bruce Lynn:
Are you still using Rhino? Still like it?Quote from @Patrick Pendley:
WE are now using it, but I have not had to make a claim yet. Tenants really like the option.
Cissell Management Co., LLC4.997 Reviews Quote from @Josh Cissell:
When they quit paying, you should have used their next rent payment to cover the security deposit, then filled a claim for lost rent against the Rhino policy. Even if they're paying monthly, you should be covered for that year.Quote from @Gary Hall:
I was a landlord using the service and initially I thought it was great. Until the tenant stopped paying the monthly premium in which the policy was cancelled. I had a tenant in a property now with no deposit. I did remove them but there was 2000 in damages. Rhino simply said their policy was cancelled. If i had an actual deposit - I would have had something to cover the damages.
Thank you for the reply. When this was happening I moved to evict them (Feb 2024) after giving them notice 2x. They stopped paying rent already earlier that month. Aside from the unpaid rent there was over $800 in damages that they did not care about because they would not be getting any deposit back either way.
Hearing was in my favor but as you know a judgment in your favor doesn't mean you will be paid as they most likely have no assets since they are renting.
They moved out willingly 1 week before the hearing at the magistrate. They left tons of stuff (damaged / broken) for me to clean with tags on this stuff labeled "stays here" (broken computers, mattresses, box springs, an old broken dryer, etc) - indicating intentional.
If I had an actual security deposit - I at least would have been able to cover some of the damages / unpaid rent.
Rhino carries a HUGE risk on the assumption the tenant will keep making monthly payments w/o any security for the landlord if they do not. The landlord will eat any court costs, damages and unpaid rent.- 2yJosh CissellBusiness MemberProperty Manager · Oxford, MS · Member since 2017 · 37 posts · 19 votes
Quote from @Gary Hall:
Quote from @Josh Cissell:
When they quit paying, you should have used their next rent payment to cover the security deposit, then filled a claim for lost rent against the Rhino policy. Even if they're paying monthly, you should be covered for that year.Quote from @Gary Hall:
I was a landlord using the service and initially I thought it was great. Until the tenant stopped paying the monthly premium in which the policy was cancelled. I had a tenant in a property now with no deposit. I did remove them but there was 2000 in damages. Rhino simply said their policy was cancelled. If i had an actual deposit - I would have had something to cover the damages.
Thank you for the reply. When this was happening I moved to evict them (Feb 2024) after giving them notice 2x. They stopped paying rent already earlier that month. Aside from the unpaid rent there was over $800 in damages that they did not care about because they would not be getting any deposit back either way.
Hearing was in my favor but as you know a judgment in your favor doesn't mean you will be paid as they most likely have no assets since they are renting.
They moved out willingly 1 week before the hearing at the magistrate. They left tons of stuff (damaged / broken) for me to clean with tags on this stuff labeled "stays here" (broken computers, mattresses, box springs, an old broken dryer, etc) - indicating intentional.
If I had an actual security deposit - I at least would have been able to cover some of the damages / unpaid rent.
Rhino carries a HUGE risk on the assumption the tenant will keep making monthly payments w/o any security for the landlord if they do not. The landlord will eat any court costs, damages and unpaid rent.That's really unfortunate. Did you immediately file the claim on the unpaid rent? What was the timeline when they said they wouldn't cover it?
Cissell Management Co., LLC4.997 Reviews What's interesting here is the differences in how Rhino operates. Originally tenants paid Rhino monthly, but in the last 2 years the only option for tenants is to pay the policy upfront.
Forcing tenants to pay the entire yearly policy upfront eliminates them not "paying" the policy and having it cancelled during the lease.
Just last month we had a tenant whose Rhino policy was up for renewal and they asked "what happens if I don't renew it". We told them they'd have to pay a cash deposit instead or move out.
What we must do is to add a Rhino renewal verification to our lease renewal process. (Thinking out loud) we need to make sure tenants renew Rhino 30 days before their lease ends. Then if tenants DO NOT renewal Rhino, we can serve them with the proper 30 day notices.
- Member since 2025 · 1 post · 0 votes9mo
As a property management company, we have had horrible experiences with Rhino. They do everything they possibly can to try to not pay your legitimate claims! They cancel policies without our permission and do not notify you so that you cannot file a claim against the tenant! There have been multiple bad experiences over the years with this company. We have very few policies left with them and CAN NOT WAIT to get completely away from them! Run run as fast as you can!!
We now use Obligo and they are amazing and so easy to work with! They pay out promptly as long as the claim is legitimate and they can actually see the tenant's ledger in your software program so they know what is going on. That makes a huge difference!
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes9mo
Quote from @Jennifer Hallex:
As a property management company, we have had horrible experiences with Rhino. They do everything they possibly can to try to not pay your legitimate claims! They cancel policies without our permission and do not notify you so that you cannot file a claim against the tenant! There have been multiple bad experiences over the years with this company. We have very few policies left with them and CAN NOT WAIT to get completely away from them! Run run as fast as you can!!
We now use Obligo and they are amazing and so easy to work with! They pay out promptly as long as the claim is legitimate and they can actually see the tenant's ledger in your software program so they know what is going on. That makes a huge difference!
I said it 2 years ago & I'll say it again...This is such a terrible business idea. Big ole' steaming turd.
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