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.

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

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

@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.

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.

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...

Suppose you want to rent a house, RM2000/mo.

You can either pay RM8000 (2+1 deposit and 1st month rent) OR RM2200/mo.

They can choose, totally up to tenant financial preference.

1. FOC for landlord, 10% for tenant.
2. We hate to call ourselves as guarantor, but yes.
3. We have been in market since June 2015. I've personally pump in RM500k into the company.

Some background:

http://property.sinchew.com.my/node/3387
http://www.bloombergtv.my/video/australia-...radar-says-ceo/

You can download our app at http://get.speedrent.com.

Thanks for all the feedback, I try to respond to every query possible because this helps us to strengthen our business case.

@max_cavalera – we are raising money now ☺

@cybertechmkteo – we are very transparent. We launched 3-4 weeks ago, and on a very low profile manner. So far we closed a few deals. On ½ month rent – by using Speedrent, landlord and tenant deal direct without hiring agent. The 1-month commission is saved. We encourage landlord to incentivize tenant to rent direct. From tenant POV, rent through agent or direct? I think it’s an easy choice.

@natman – yes, it’s 3 months, just like your cash deposit buffer period. There is tenancy agreement. And if they move out in a month, our guarantee kicks in. there is no charges to owner.

@jianninety – it’s a trend that younger generation prefer lifestyle. Just because they pay less 10% does not necessary equate to 10% savings in bank, but I don’t deny your logic. We are currently thinking of NCD sort of discount, if good payment record, following years will get reduced rates. The vision is to build a safe, transparent and automated rental platform where everyone be a good actor.

@samkps – you rightly pointed – regardless how nasty tenant, whether you get cash or speedrent scheme, your risk exposure is the same. And we are raising $ from investors to make sure we have great credibility. Speedrent pays on time regardless if we successfully charge credit card or not. I personally put in RM500k into it to get this running, so hopefully it’s sufficient. We will have ways to deal with defaults later on.

@maraippo @satrianeo-x – I’m not sure if you have kids, but I suspect my kids will have problem saving money because it’s just hard to save now. But do I think my kids would be bad tenants? I don’t think so. It’s just an unstoppable trend. I do know many people voice the same opinion and I respect that. Point taken.

@psyduck89 – just residential only.

@shadow_walker – why not? ☺

@kira90 well, even if it’s not through speedrent, we still can do it somewhat.

@hello hello -

@ycs – 3 consecutives failure = termination, and can start to evict. We don’t perform verification at the moment; everything is between landlord and tenant. We are try to keep as a payment platform.

@mthc – yes, we play a role of payment processing only. The actual is still between you and tenant.

@max_cavalera – thanks for your support, and we need more!!!

@takuro82 – yup, that’s why we need to get more support, and raise $$ to fuel the growth. We are mainly focusing in Klang Valley at the moment.

Check out our launch video last year: https://www.youtube.com/watch?v=4uKO0AQRuyQ

In your opinion, would she make a good tenant? Did you think she was financially 'bad'?

Just want to see what you thought about unable to pay deposit.

@MrHunter – thanks for the PD x EAD x LGD. Never knew that.

@icemanfx – not going to debate with you on this because anything in life has risk. And certainly I won’t deny there is risk ‘IF’ speedrent fold. I can only do my very best.

@kochin – yes, bounce some ideas to me, I like ideas

@HarpArtist – as Mrhunter pointed, we don’t expect high default rate. The business did factor the risk of default. If it exceeded a certain level, it won’t be sustainable.

@hakamika – happy to discuss if you know anyone in MIEA wish to collaborate. Please allow me to segment the market so that you can see the market clearer and where speedrent is positioned:

In my world view, there are 3 types of landlord:

1. very busy, very wealthy, hate hassle – agent’s market.
2. the opposite of #1, wanna know tenant, wanna DIY – underserved market, and speedrent is here to fill the gap.
3. hybrid of #1/2, whichever find me tenant the speediest, I’ll either pay or DIY. This is a market we will compete head on.

So we don’t wipe out agents, we co-exist. (cheahcw2003 is the hybrid I mentioned, and I believe they form the majority of the market)


@godlikexioo thanks for the support.

@nookie188 noted, and we are still a small player in the market, time will tell.

@realcyma we are thinking along that line too to expand our service coverage.

@icemanfx 75% of the inquiries are done by Malaysian. 25% foreigners.

@hakamika – yes, you can chat in the app with the landlord direct.

@Asali I did not start the thread. hungryJack wanted to sought for opinion of our no deposit deal.

@metalrage thanks for the support!

Not sure if I understood your questions correctly. If you follow the entire thread, some questions asked if Speedrent would affect agents. But we didn't think so, we think both solutions are here to serve different market.

And no, we don't show units, negotiate. Tenant can search property through our web or app.

By end of tenancy, we will pre-auth RM1000 on the card for damages. You need to report within 2 weeks time.

Actually we are quite different in terms of filtering. We have begun CCRIS / CTOS / RAMCI to credit score tenant (this is one of the major step on how bank approve loan). Next month we will start Global Criminal Check on foreigners as well.


I believe what you experience as to 'look see look see' tenant is everywhere, just that agents will deal with that.

It's crucial to speak to the tenant a little more before doing viewing appointments. Acknowledging this is a problem - we will have this solution by Q3 this year.

Thanks for the analysis, you got it right

Just a new development - we have recently partnered with Allianz General Insurance, and right now they are safeguarding landlord's interest.

Press release can be read at https://www.allianz.com.my/media-hub#4Jr4QcOGemJY8FMb.97

I guess there are different spectrum of discussion here.

Long long time ago, my grandparents bought houses with lots of cash upfront.
Long time ago, my dad bought houses with less cash upfront.
Now, I buy my property with <10% DP.

Long long time ago, perhaps those who can't afford to pay cash upfront is bad paymaster in repaying loan?

Time has changed.

We have read so many news that wages in Malaysia isn't increasing, yet inflation has gone up significantly. Many news that says younger generation can't save due to high cost of living.

Our kids may need to accept the fact that they can't buy house. And many years later, my grandson perhaps can't even pay deposit for rent.

Sad but we need to understand the market.

No more 50% discount.

It's true that you pay 1 month rental, but bear in mind this is on the 12th month rent.

Suppose your tenant terminate / run away on the 11th month - you technically did not pay us anything.