Good news for South Africans who are unable to source both a deposit and a first month’s rental upfront.
Disruptive property technology company HouseME has launched a new product called DepositFREE™ which will enable tenants to lease a residential property without paying an upfront deposit.
This is good news for South Africans who are unable to source both a deposit and a first month’s rental upfront. HouseME co-founder and CEO, Ben Shaw, says: “The reality is that South Africans are under increasing economic pressure and oftentimes great tenants simply are not liquid enough to put together the security deposit as well as the first month’s rent.”
The company has been working on DepositFREE™ for a few months. Chief Operating Officer Lorne Hallendorff explains: “Given the impact the current economic climate has on tenant purchasing power and vacancy rates across South Africa, HouseME built DepositFREE™ to ease the burden for tenants and, of course, to continue helping landlords fill properties rather than lament their lost rental.”
With DepositFREE™, tenants can now choose to pay a little more for their monthly rental instead of paying the upfront security deposit.
For landlords, whenever a tenant choses DepositFREE™, HouseME provides full coverage against the value of the deposit. Adds Hallendorff: “Deposit coverage funds everything a normal deposit would cover, at no extra cost to landlords. It will have no impact on a landlord whether a tenant is renting DepositFREE™ or not.”
As a tech company, HouseME uses smart technology to vet tenants and collect rent. Over 99% of HouseME’s rental ends up being paid in full by vetted tenants – well above the national average.
“Since inception we have ensured a rigorous tenant vetting process and are confident that this new product will do extremely well in the current difficult economic environment,” says Shaw. A recent survey conducted by HouseME revealed that over 80% of respondents would have opted for aDepositFREE™ lease for an additional monthly fee, had this been previously offered.
“We are excited to bring this new product to market as it will make a significant impact to South Africans with limited disposable income. We have already trialled it with some of our tenants and the results have been promising,” concludes Hallendorff.
Visit www.House.ME for more information.