Security deposits are the greenest monster in Boston

Posted by: TheGuarantors on August 28, 2018

In June of this year, the rent for Boston averaged $3,374 per month.

That’s the third highest in the US and almost $2,000 higher than the national average of $1,405, which is itself a record. The $3,374 in monthly rent does not include the cost of a security deposit (typically one month’s rent), renters insurance, and the cost of a move — which Zillow estimates as up to $700 for a two bedroom. This can add up to well over $5,000 just to get your foot in the door.

Boston isn’t just more expensive than the rest of the country, it’s also home to renters who are more likely to struggle to find a place because they have little to no credit history and hard to assess financials: college students and international renters.

According to some estimates, the greater Boston area is home to as many as 250,000 college students. That’s a quarter million people who may have limited credit, or lack the local guarantor necessary to secure an apartment. Boston is also a popular destination for international students, who face additional challenges due in large part to a lack of credit history in the US. Likewise, according to Pew Research, Boston has the fourth largest population of foreign workers with H-1B visas, who face comparable challenges.

We set up shop in New York City with the mission of solving a challenge that is familiar to so many living here: the challenge of securing a rental apartment. But New York isn’t the only city where renters face this challenge.

That’s why we expanded into Boston earlier this year. Our initial partners include New England landlord The Hamilton Company, development marketing company The Collaborative Companies, and broker NextGen Realty, some of the most important players in the city’s rental market.

Our services are also available to the rest of Massachusetts as well as Connecticut, Rhode Island, and several other states. We hope to announce more updates soon.