Allianz approved the claim yesterday around 4pm. Today we will disburse it to you.

Around RM10-RM15k range.

I beg to differ. Really. There is a lot of misconception about no deposit.

Yes, we do attract 'financially' bad tenants, but we also attract financially stable tenants. And we perform credit checking on every transaction, which means if tenants that are financially bad, they won't be accepted to rent through SPEEDHOME.

Put yourself in the shoe of tenant - even if you were able to pay deposit, would you like NOT to pay deposit if there is an option?
Put yourself in the shoe of tenant - you have just graduated, your saving in bank is low, unable to pay deposit, but does that mean you are financially bad?
Put yourself in the shoe of a property buyer - is downpayment hard? And if the prop developers gives 0 downpayment - would it suddenly become super easy to own a house? (that happened in 2009-ish, and that's why a lot of people 'got rich' with it). Same logic for 0 deposit for renting a house.

I presume you would understand the pain the tenant goes through. And understand that there tons of upside for owners to gain through enlarged tenant pool of choices, speedier because your neighbours want deposit, and you get insurance protection.

We should objectively analyse the situation, not just looking at one aspect of the situation without looking at other opportunities that arise from that.

It's easy to think like that.

Trend:
1. BNM has surveyed that and 75% of Malaysians couldn't fork out RM1000 for emergency.
2. Gen Y/Z prefer spending on lifestyle to saving.
3. Even Mobile phones/Gadgets (only RM1-5k) can buy with installment instead of cash.

In early 1970s buy house is cash down, don't even have loan, so should we be thankful that now that we can get loan to buy house? Owners always think that tenant "oh 6k also don't have, don't rent laaa". Should property developers think "50k also don't have, don't buy house la"?

We would think logically prop owners are at the better end of income level (T10); hence has the capability to save RM50k. But on tenant side, they are generally at the lower end of income level, maybe M40. So different earning levels have different capabilities to save.

RM10k/mo is easier to save RM2k/mo than RM3k/mo to save RM2k/mo.

Is installment on phones bad? Well yes if you are not managing your debt ratio well. But does it helps drastically improve access to purchase? Yes. So long it's debt is managed properly, what's wrong with installment vs buy outright after all, a lot is going 0% installment anyway.


Waiver of downpayment/deposit = ease of purchase for you to buy and developer to sell / ease for tenant to rent, faster for you to transact.
Developer = owner. If developer is easy to sell, then owner can easily rent out.
Risk = Filtered through credit checking, and if checking failed, you have insurance to cover deposit. Risk is born by Allianz at the worst.

Take note that the insurance has 3 components:
1. Rental loss - if tenant default or early terminate and runaway - 2 months - that is equivalent to your traditional 2 months of deposit.
2. Inconvenience benefits (RM1000/RM2000 depending on insurance plan) - claims for cleaning / utility bills - that is equivalent to 0.5 - 1 month worth of deposit

1 + 2 is already sufficiently match what traditional deposit covers. But what's on TOP of your traditional deposit, the insurance also cover:

3. Damage or theft to household content - RM15k/RM30k depending on insurancep lan. Technically anything extra you claim from this portion is already better than deposit. Bonus.

This post has been edited by wheimeng: Feb 5 2020, 08:02 PM

It's certainly more than traditional deposit, but I won't disclose.

We transferred to him already. And as for the total disbursement, if Faiz wants to disclose - he will. But like I said, it's more than a traditional deposit already.

I'm sorry I haven't been able to convince you. And this is a forum where it is open for opinion and debate, and I admittedly said deposit has its pros, so is insurance. For further transparency.

Stats:
50th percentile - all claims* taken care by Basic package.
~85th percentile - all claims* can be taken care of with Extended package.
* means the submitted claim vs approved claim = 100% match.

Remaining 2% - Allianz approved less, we pay from our pocket to subsidize when we think it is reasonable for landlord to claim it.

We do what's right and fair, I'm a landlord as well, so I know the pain. And where ever Allianz didn't payout as much as landlord expected but we thought that it warrant assistance we subsidize, most if not all landlords were satisfied with the outcome. And those we subsidise is in excess of 2% sample size stated. So in other words, we will make sure landlord is better protected, and certainly making sure it has a better outcome than taking deposit.

So you can choose to bombard on our extreme cases, which is super rare. When extreme cases happen to you when you take deposit, I'm absolutely 100% sure without a doubt that you will be better off with insurance. One way or another, Allianz or SPEEDHOME will make it right to you because we are here to protect both landlord and tenant.

I've responded with stats to show the submitted claims vs approved. So some were not fully approved but 85% were covered totally.

On property developer or whoever, there is someone gonna take the risk - buying property - banks will bear the risk if prop owner defaults.

In the case of your property is screwed - the risk is transferred to insurance - and 85% were totally covered. 2% of the most extreme cases were sufficiently covered with subsidy with SPEEDHOME.

So we can go over and cherry pick certain situations to debate, but I think that we have super high of percentage of all risk are properly covered by insurance and subsidy from us.

This post has been edited by wheimeng: Feb 5 2020, 09:24 PM

Hehe... perhaps we should appoint an auditor to audit this figure?

I think we will do just that. I'll ask my finance to ask the auditor to do this special audit. I hope by the time we release the report, there won't be comments on "oh this is not from PwC, Deloitte, E&Y...". I'm all ready to prove that.

Like I said, the insurance is certainly better than the 2.5 months deposit. It's not even comparable, only it's furnishing documents that's a little leceh, but as mentioned too, 60% of claims approved within 5 business days. 96% within 15 business days.


This post has been edited by wheimeng: Feb 5 2020, 09:57 PM

This is for the tenant to pay, not landlord.

Landlord portion of paying premium is prorated according to the tenure. So if the tenant wants to rent 6 months, the landlord only pays for 50% of the premium. The surcharge to the tenant is to pay for the remaining of the insurance premium.

In other words, landlord get 1 year insurance for half of the cost as the tenant bears the other half.

After 6 months, landlord can either request the insurance to be canceled and get a refund or continue to use SPEEDHOME to find another tenant for free for the remaining insurance period.

It shall retain as part of insurance premium.

Glad that you found a tenant on SPEEDHOME.

The Extended+ package includes on time guarantee rental, which means you will get your rental on time regardless if your tenant pays on time or not.

If you prefer to downgrade it to Extended plan, do email finance@speedhome.com to request for change of package for our review.

This post has been edited by wheimeng: Feb 18 2020, 12:53 PM

#2: This is our new SOP. It can be irritating but let me explain why we did it. After the booking is paid, we will go through background checking and sometimes, tenants dragging their feet on providing doc/failed our stringent check - this has resulted unhappy landlords that waited for that prospect and ended up with nothing and opportunity lost. We have improved the SOP that upon booking fee, whoever gets passed the check quickest will get the unit and of course it is subject to landlord preference too on which tenant to accept.

#3: Yup, we are launching speedmanage.com and revamped the whole system, so it's not the smoothest experience and I apologise for that.

#5: Some of the replies were auto-generated, we have established a working group last week to fine-tuning some of the processes this week. We received similar feedback on this and going to look into it now to revamp the communication again.

We changed the tenancy sometime ago because landlord requesting for early termination due to selling the house. This clause is mutual for both parties.

In any case that the tenant early terminates, the insurance is still active for your next tenant, which means you can continue to use SPEEDHOME to find a replacement tenant for free.

On early termination, less than 10% actually use that exercise that clause, this includes both either landlord or tenant who requested for it.

This post has been edited by wheimeng: Mar 2 2020, 03:33 PM

I took note of your request. We review our clauses from time to time, and if there are a lot of requests for this clause change - we will look into it.

Please pm me your number or email - I'll need to check, by right system would automatically delist it.

We just launched https://speedmanage.com - free rental collection for non-SPEEDHOME customers. No catch, rental 1000, you get 1000. Zero charges. It's in beta mode now, do try it out and let me know your feedback.

SPEEDHOME is for deal transaction purposes. SPEEDMANAGE moving forward would be the business unit to perform rental collection.

We can still collect the key and help you to take a photo and video to perform contactless viewing as we are under essential services.

Within Klang Valley - you can request for it, please email hello@speedhome.com for further support.

1. The rental relief is granted between an agreement of tenant and landlord, we are not involved in it - we change our system to reflect their agreement.
2. Our agreement stipulated the procedures, and if conditions not fulfilled, can claim from insurance.