Renting Reformed with Blockchain
Most people who rent their home would agree the current rental system is long overdue for an upgrade. The process of finding, applying and processing a rental agreement takes far more stress, worry and waiting then it really needs to. With the technology we have available to us now, it makes sense to create a better mechanism to eliminate unnecessary procedures which ultimately cost us time and money.
Lucky for us, Rentberry has taken this problem and provided us a better solution with the application of blockchain technology and their own cryptocurrency, aptly called “BERRY”, to innovatively provide a new and improved home rental platform service.
Like nothing else that currently exists, Rentberry has created an ecosystem that unites tenants and landlords directly, by employing blockchain technology and smart contracts to act as the broker between them. All required and supportive personal records, such as credit scores, rental history etc can be securely stored and submitted between relevant parties. In addition, tenants can personalize custom-offers to stand out among other applicants and gauge the competition with their unique transparent bidding system. Once the successful tenant wins the acceptance of the landlord, the rental agreement can immediately be e-signed, there within the user interface. Piece of cake.
Unlocking Frozen Security Deposits
What takes this platform the next level, is its ability to benefit all who engage within the Rentberry community. For the first time ever, tenants can have their security deposit crowdfunded collectively by BERRY token holders, who can choose to act as micro-lenders -which pays 90% of the deposit to the landlord. In return the lenders make around 7% interest from the tenant who pays back a small percentage monthly, which ultimately only costs them a few dollars at a time over the course of their lease. A small price to pay to avoid the inconvenience of a huge upfront pay out, while often waiting to get the previous security deposit back.
There is more than $35 Trillion in bank accounts around the world, generating only 0.1% interest. People have limited access to investment alternatives that often have minimum thresholds and requirements. As an alternative, Rentberry frees up the frozen security deposit money normally held in these bank accounts, which could be put to better use, and at the same time offers a smarter investment option.
It is by leveraging blockchain technology along with their BERRY token that Rentberry are able to offer this unique and innovative feature, which really maximises the blockchains potential of use within the platform. This solution aims to harness the power of crowdfunding to create the optimal outcome – micro-lenders gain a low-risk way to make returns, renters hold onto their money, and landlords are guaranteed the return of their deposit – resulting in a triple win scenario.
Reward and Ratings System
Finding a new home can be a stressful process, it’s tough to make a good impression to landlords on your rental history and payslip alone – a landlord doesn’t necessarily want the highest bidding price if the tenant is going to be a complete nightmare. There are many more factors to consider when determining what makes a good tenant. Rentberry has a unique and broader approach on this, that gives tenants the option to portray all the aspects that makes them a worthy candidate in their custom offer. A tenant is reviewed based upon their previous payments performance, history of evictions, bankruptcy records, data and scores from credit bureaus, past due accounts, reviews from previous landlords, criminal history and background check and even social media accounts are taken into account. Based upon this information Rentberry allocates the tenant a score of between 100-1000. This score is updated at the completion of the lease with the landlords’ new review taken into account – on the contrary, landlords are also reviewed and rated by the tenant and Rentberry, and likewise allocated with a score between 100-1000.
This system ensures that both parties go into a rental agreement confident with whom and what they are committing themselves to. Not only that, but it encourages positive cooperation throughout the term of the lease, so that they’re rewarded with an outstanding review, making it easier for them to rent or lease in the future. This system also supports the crowdsourced security deposit scheme, by lowering the risk of its potential loss from the vast Rentberry community – no matter how insignificant the loss may seem.
Future for Rentberry
Rentberry is being widely adopted already, the platform having listing over 450,000 properties, across more than 5000 cities and processed more than 4000 rental agreements. The project has impressively gained interest from mainstream media (which is not common for a blockchain business), having been featured on prime-time news in multiple countries. Also, respectively mentioned in both Forbes and Inc. as one of the “Top Real Estate Start-ups in 2018” and “Top ICO’s of 2018”. Rentberry is currently operating in the US, however this year expanding internationally, starting with Australia, Canada, New Zealand and the UK.
Powerful partnerships are now being formed, starting a few days ago with the Cushman and Wakefield Texas Advisory Branch – part of one of the largest global real estate firms operating in more than 70 countries. According to Rentberry CEO – Alex Lubinsky, there’s another exciting announcement to be made within the next few weeks. To catch it first, connect with their Telegram channel https://t.me/rentberry
Rentberry is still in it early days, having only hit the exchange in early April with HitBTC, which means for greater opportunity for early adopters to participate while this well-founded company is on its rise to the top. For more information about Rentberry check out their website and platform: https://rentberry.com/