Say goodbye to traditional rental headaches as fintech innovations replace paper checks, delays, and uncertainties, transforming the renting experience.
Rent and all the inefficiencies, uncertainties, and frustrations that usually accompany it have existed for almost as long as money and homes. Paper checks and lengthy waits may soon be a thing of the past as new digital advancements take the place of classic rental annoyances like writing and depositing paper checks and nervously waiting for a security deposit to be returned. Here are a few examples of fintech (financial technology) solutions that are positively altering our perceptions of rent.
Making Rent Payments Simpler
The streamlining and simplification of rental payments is one of the largest changes fintech has brought about in the rental sector. Banks and other financial institutions, to their credit (pun intended), have realised that they need to modernise the way they handle rentals and are now providing digital alternatives to the cumbersome and occasionally unreliable traditional options.
For instance, tenants can set up automatic, recurring rent payments directly from their accounts on Chase Bank’s platform. While not suitable for every renter, this eliminates the need to write checks or transfer money, which simplifies and increases the security of the renting procedure. In this manner, everything is handled without any conflicts or late payments.
But that is by no means all. The rental market of the twenty-first century is also being disrupted by a number of other new technical innovations.
Insurance for Rental Deposits
The mere mention of the term “security deposit” may cause both landlords and tenants to shudder. Conventional security deposits can be quite expensive for tenants, and obtaining them returned can be a time-consuming procedure. These days, a lot of fintech companies provide a type of renters deposit insurance that lets tenants avoid paying a large upfront deposit by offering a lesser premium. Renters benefit from having a safety net in case something goes wrong and an easier time finding housing as a result.
Insurance Guarantees
Getting accepted for a flat is another typical obstacle that renters frequently encounter, particularly if they have a bad credit history or none at all or work in an unconventional field like freelancing. A distinct type of insurance known as guarantors insurance is offered by certain fintech businesses. It serves as a financial safety net for individuals such as students, foreign visitors, and others who might require an advantage when looking for housing.
Apps for Renters’ Reward
Most of us are probably already aware with loyalty apps from businesses like fast food restaurants, supermarkets, and our favourite stores. But a renter-focused rewards app? It is a real phenomenon. Paying your rent on time is encouraged via reward applications developed by companies like Rent Perk. When rent is frequently paid on time, tenants can receive cash back, gift cards, or discounts. This can foster good landlord-tenant relations and encourage financial responsibility, so it’s a win-win situation.
Rental Administration Systems
Chase Bank and the option to have your rent paid automatically on a schedule were already covered, but that’s only the beginning. Numerous other financial platforms, such Paymatrix and Esusu, provide a far greater range of services, including rental agreement signing, deposit collection, tenant screening, and more. Additionally, these platforms often promote the purchase of renters insurance, which is a sometimes overlooked way to safeguard your possessions and liability in the event of a robbery, burglary, or injury in your rental property. More on this later.
Reporting on Rental History
Though it may seem like landlords would stand to gain the most from an app that reveals rent history, that isn’t the main purpose of this fintech innovation. A few fintech startups want credit bureau reports to contain information about past rentals. Paying your rent on time can help you improve your credit score, so it’s simple to see how this could be advantageous for renters. Many other things in life are easier to obtain when one’s credit score is good, particularly credit cards and loans.
Things to Consider Before Hiring
When they move into a new flat, a lot of tenants forget to get renters insurance. Many people believe that unless you own a home, you don’t need insurance, but that is untrue. In addition to protecting your possessions from loss or theft, renters insurance may also be able to assist you in finding housing should your flat become unusable for any reason. Additionally, the cost is really affordable. According to hard data provided by Ross Martin of The Zebra, the average yearly premium for renters insurance is $233, or $19 per month.
Due to their recognition of the market opportunity, insurtech firms—like Sure—are collaborating with fintech companies to offer an integrated renters insurance solution within their apps. Similar to how technology is streamlining the payment process, acquiring a renters insurance coverage might soon only require a few taps or clicks.
