Hi all, saw speedrent comes out with new scheme which is no security deposit require to pay by tenant..
currently I have a tenant have difficulties to pay rental deposit, hence would like to collect view points from owner and tenant how this benefit both parties.

https://speedrent.com/web/no-deposit-programme-faq/

Hope to gain view point from everyone here.

Hi hungryJack,

I'm founder of Speedrent, thank you for your interest. I shall first explain the reason why we launched this scheme:

Younger generation and coming generations face difficulties in saving due to high cost of living; therefore, it is unbelievably hard for them to pay 2.5 - 3x of rental for deposit (security and utility).

We did not think it was fair to judge the younger generation as bad tenants, just because they can't afford to pay deposit? No, it's just tough life now and an unstoppable trend!

But at the same time, it is important for you as a property owner to take deposit as a way to protect yourself from non-payment.

Speedrent acknowledges the problem and wants to solve this big hurdle for deals to happen!

Speedrent Guarantee Scheme makes it easy for you to make deals with Gen X/Y:
1. Renter doesn't pay deposit at all, and move in.
2. Speedrent auto debits renter's credit card on time - every month.
3. Speedrent pays to your account on time - every month.
4. In the event the renter's credit card is declined, we will inform you of the issue, BUT will still pay you on time.
5. Speedrent will attempt to charge again within 5 days. If declined again, it's a big red flag and eviction process must start now. BUT we still pay you on time for the following 2 months.
(This is equivalent to 3 months deposit)

This is a summary to what we do, feel free to ask any question you may have - happy to address it for you. Hope you understand the rationale and the benefits of this scheme.

In the meantime, if you wish to speak with me, you can reach me at 0192679338.

I must say this is a brilliant idea 😁

quite cool. i like

few questions :

1. Who are the parties involve in the tenancy agreement. Will speedrent be one of the parties in the tenancy agreement?
2. On what grounds can speedrent evict a tenant ?
3. What if speedrent is unable to evict the tenant in 3 months time?
4. What about damages to the property after the eviction ? Can landlord claim for damages to the property from speedrent?

Thank you.

1. Yes, Speedrent is one of the parties.
2. We do not evict, but we terminate the agreement upon non-payment for 3 consecutive failure charge to the card in a month. We notify tenant every time card has been declined and would expect them to make sure card is chargeable again. This gives you super early 'warning' detection, and begin the eviction within 2 weeks instead of months.
3. We do not evict, we are a payment solution provider. We however would love to provide best practice for eviction.
4. In traditional deposit model, you take 3 months deposit. That's the most you can get in an event you have a bad tenant that break the agreement and at the same time damage your property. In our model, it's the same, we issue up to 3 months rental (which is equivalent to your cash deposit). It's the same.

Hope that explains

This post has been edited by wheimeng: Apr 12 2016, 11:55 AM

thumbs up wheimeng

Hmm, if tenant cannot cough up 3 months deposit can still get credit card? Assuming gen X/Y is the target segment.

We built this with Gen X/Y in mind. But ever since we launched 4 weeks ago, the requests came from various groups because it also address the need of managing cash flow or conserving emergency savings.

If tenant's credit card has exceeded its credit limit, and unable to pay that down - it is the first indicator to a highly probable financial distress. With cash payment, it's hard to know anything.

Another benefit to this - totally seamless and automated solution. No more bank checking on rent payment or to call up to chase for rental.

This post has been edited by wheimeng: Apr 12 2016, 12:21 PM

Seems like a well thought out business model. Wish you smooth sailing in the future.

good idea.

as a house owner, i want one more service, in case 2nd time overdue, start eviction process. can your company provide service to help? if yes, how much it charges?

@JianNinety Thank you, and need lots of support to make this a success.

@realcyma We don't have such a service yet, but I'm sure we can help out on a case by case basis.

I think u simply nailed it for houseowners...

This can simply eliminate house owners receiving late rental payment totally 👍🏻👌🏻🤗

But i dint agree on the no deposit part. At least take 1 month deposit or something as assurance...tenants can simply stole/damage house , went mia and cancel their credit card...later owner say ur partly responsible as well

Question:
1. What if the damage to the property exceeds the deposit?
2. What will happen to the tenant that can't pay? Would he be blacklisted until he pays back the amount to you?

seems like a good idea. anyone have tried it?

That's the goal, hopefully no more late payment anymore! You totally get it

Thank you for your feedback, and we will discuss this internally.

As for cancel/mia credit card, the guarantee would kick in automatically.

Cool

How much is the charges ya?

1. When you collect 3 months cash deposit, what can you do? You can't claim more from the tenant anyway. I guess we can just call it unfortunate for now because sh*t does happen. But more importantly, let's focus on getting bad tenants evicted ASAP and lease your property out again.
2. We intend to have an open database (in roadmap) so that anyone can tap into it and be protected.

It's FOC for landlord for a foreseeable future.

Tenant pays 10% extra to cover credit card processing fee etc...

So means extra paid by tenant? Would tenant be agreeable?

This post has been edited by OPT: Apr 12 2016, 03:40 PM