When low income families are moving into a new apartment, trailer, or home, they may be required to have a security deposit. Putting a security deposit down when renting a housing unit is a standard practice around the country, but that doesn’t mean everyone can afford it. For those who may struggle financially, coming up with the security deposit can be quite challenging and may keep them from renting the place. It is important to know where to look for help for low income families with security deposit assistance.
Security deposits are required by most landlords, because they help ensure they will not be stiffed on the money owed to them. For example, if someone signs a one year lease and then stops paying rent at month 10 or 11, they will likely lose their security deposit to cover what wasn’t paid on the lease. Likewise, if someone rents a unit and does damage then the security deposit would help cover the cost of repairs that are needed.
Most of the time, a security deposit is equivalent to one or two months of the amount of the rent. Therefore, if your rent is going to be $1,000 per month, then your security deposit is likely going to be $2,000 $3,000. This means that upon moving into the unit you will need to give the landlord anywhere from $3,000 to $4,000. Most low income families will not be able to do that, because it’s a lot of money to come up with.
Getting Security Deposit Assistance
For those who have a low income, it may be impossible to save up the security deposit to move into a housing unit. They likely don’t have extra money left over each month to save up for it. Yet they still need a place to live, which causes a dilemma. The landlords are not usually going to be open to the idea of waiving the security deposit, which means another route to coming up with it is in order.
Below you will find some options to consider for getting help obtaining a security deposit. Low income families can evaluate these options to see which one may work for them and then make the necessary contacts to get the ball rolling. Reach out to as many programs as you feel qualified for, because the more you contact the chances of you getting the assistance will increase.
Housing and Urban Development (HUD) – As the largest provider of housing assistance in the country, this federal agency may help people with security deposits. They provide housing assistance for those who meet the low income requirements. HUD has an office in each state and will help people locate affordable housing in their area. They also provide programs that will allow people to live in a government owned housing unit, and they will help pay for the rent for those who qualify and want to choose their own housing unit. Contact the HUD office in your state to get more information and apply for help paying for a security deposit. To locate your state’s HUD office, click here.
Public Housing Authority – Like HUD, each state has a public housing authority office. This is part of the state government and it does much of the same things that HUD does, but on a state funded level. You can contact the public housing authority office in your area to see if they have a program that will provide assistance with obtaining a security deposit. They may have one in place or be able to refer you a program that will help you. They may also be able to provide you with alternative options on where to rent, which may not require a high security deposit. To get assistance from this agency you have to be a legal resident of the state and have a low income. To get more information and find your state’s public housing authority office, click here.
211 – The United Way provides this phone number that anyone in the country can call if they need financial assistance for something. You can call the number and let them know where you live and what type of help you need. They will use their referral database to locate local programs that may be able to help you. Their referral service is free to use and open to everyone in the country. To get more information about the service, click here.
Churches – With thousands of them across the country and having a mission to help the people in the community where they are located, you should feel comfortable contacting local churches to inquire about any type of financial help you may need. Reach out to the ones in your area to see if they could help a low income family come up with the security deposit to move into a housing unit. They may be able to help you or provide you with referrals to a local program that can. You do not have to belong to the church to turn to them for assistance.
Salvation Army – This organization has many locations around the country. They are a faith-based organization that provides numerous assistance programs to those in need in the communities where they are located. Those who need housing assistance can contact their local Salvation Army for resources and help. Depending on the location, they may have program in place that will help you directly, or they may work with other programs and organizations in the area that can help. To get more information and find a location near you, click here.
If you cannot find a program that will assist with the security deposit, consider moving into a different housing unit or asking the landlord to work with you. They may be willing to spread the security deposit amount over the course of the rent for the first six months or so. This will make the monthly rent a little higher, but will make it easier to pay the deposit.
