My personal opinion on this system:
For landlord:
Advantage:
- It may make your unit easier for rental due to "easy entry cost" because potential tenant pay less initial cost for renting your unit
Risk/disadvantge:
- Instead of getting one lumpsum of deposits (2+1) at the start of tenancy, you only will get it at the end of tenancy, on monthly installment basis.
Example: Rent is RM 2k/month. Landlord instead can collect a big lumpsum RM 6k (2+1 month deposit) at the starting of tenancy, now need to wait till the end of tenancy only can collect the RM2k at last 3 months.
- If the guarantor (speedrent in this context) not being able to pay you the deposit at the end of tenancy due to some unforseen circumstance, then GG. Although it is unlikely, but landlord to bear this risk.
For Tenant:
Advantage:
- Easy entry to rent a house, no need to have high initial commitment to rent a house.
Example: Rent is RM 2k/month. Instead need to pay all the initial deposit cost RM 6k, now just need to pay RM 2.2k then already can rent the house.
Disadvantage/Risk:
- Tenant need to pay 10% extra for this service. I am not sure this 10% is for first month or for additional consecutive months. It just like someone borrow you cash to pay the deposit and charge you 10% of it.
- This system is leveraging the future credit card repayment capability of the tenant. If tenant already committed to the rental due to low entry package but not able to service it in the upcoming period, then GG.
I think landlord also have risk, say if the tenant just rent for 1 month with 50%off without deposit but paying extra 10% for service charge