by Robert DeVoe
Rentberry is an Ethereum-powered property rental platform that aims to solve all the major issues found in renting property today.
The Problem with Property Rentals Today
The property rental market for home and apartments is fragmented, insecure, fraud-prone, and fraught with numerous other issues. The process of getting a contract for a rental apartment is opaque, costly, and often a huge waste of time. It can involve bidding wars, deception, endless applications, and uncomfortable face to face negotiations with landlords. Things only get more complicated when someone wants to find a rental property in a foreign country where the rules and process could all be completely different.
For example, in the United States rent is paid monthly and with a one or one and a half months deposit. Many landlords require rental references, employment information, or credit reports. In China, rent needs to be paid in three to six-month increments with a one to three-month deposit. Rent in the US is typically paid via electronic bank transfer or check, and in China, it’s either through cash or a mobile payment service like Alipay. These differences can be the difference between a quick and easy move, or a nightmare scenario of confusion and despair.
The technology behind renting has changed very little in the last few decades. The only difference being the move from putting a rental ad in a newspaper to putting the ad on a website. Clearly, a change needs to be made. One that makes the process clear, transparent, secure, trustworthy, and flexible across the globe. This is where blockchain and the power of Ethereum can make a real difference.
Rentberry: A Blockchain Solution to Real-world Problems
Founded in California in 2015, Rentberry is an online renting platform that served over 224,000 properties in nearly 5,000 cities, and is seeing huge growth in active users month to month. After experiencing several years of growth and success, Rentberry wants to bring the power of blockchain to the property rental space.
Here’s how the platform will work. Landlords can list their properties on Rentberry, and potential tenants can submit open bids on them. Tenants can include additional information about themselves such as references, employment history, and credit reports to improve their odds of securing a property. Once an agreement is reached, the process of paying rent and holding deposits (more on that later) is done through Ethereum smart contracts. Rent is paid using the platforms own BERRY token.
During the life of the contract, the platform can assist both tenant and landlord with processing and paying for maintenance requests like plumbers, handling rent payments, and unlocking security deposits.
The platform can also keep track of a scoring system for each landlord and tenant based on reviews from previous contracts. This system will be especially useful for renters coming from abroad, as their positive rental history can making moving to a new territory easier.
Crowd-sourced Security Deposits
A big issue with the property rental industry today is with how security deposits are handled. Today, if someone wants to rent a property, they will need to make a security deposit with the landlord. More than $500 billion is locked in rental security deposits worldwide usually for duration of 20+ years (from the time people graduate from college till they buy their first property). In the event that the tenant fails to pay rent or damages the property, the landlord can use the security deposit to cover the losses. But 99 percent of tenants never damage the place or ever default on rent payments.
Moreover, security deposits can often prevent otherwise qualified tenants from renting a property. This could be due to lack of funds, or from the opportunity cost of having said funds tied up in a security deposit that earns no interest.
Rentberry has an innovative and completely unique solution to this problem, crowdsourced security deposit coverage. Crowdsourcing will allow to unblock up to 90 percent of rental security deposits. Users of the Rentberry platform in any capacity, not just landlords and tenants, can use BERRY tokens to invest in a portion of a security deposit and receive an interest rate type return on their investment. Due to no-boundaries and global reach, people from all countries will be able to back financially quality tenants and generate interest rate that is much higher than just having money frozen in the saving accounts. This, in turn, will allow a much larger pool of candidates to have access to rental properties and not need to have funds locked into a security deposit.
The company has already raised $4 million in seed funding from venture-capital firms and 11 countries. It is now getting ready for its ICO public sale. The token sale begins on December 5 with a minimum buy-in of 0.1 ether for 250 BERRY tokens.
The Sale process includes four cycles, during which one can receive significant bonuses:
Dec 5 – Dec 19: 33 percent Bonus
Dec 20 – Dec 26: 27 percent Bonus
Dec 27 – Jan 16: 20 percent Bonus
Jan 17 – Jan 30: 13 percent Bonus
Jan 31 – Feb 13: 7 percent
Rentberry is lead by a skilled team of 23 experts who come from a background in real estate, investment banking, marketing, IT, and blockchain technology. In addition to professional experience, the members of the core team and its advisors are all current or former renters who understand the needs and pain points of those involved in property renting.
For more information about Rentberry and its upcoming ICO, read their whitepaper to find out more or feel free to contact them at:
Platform site: rentberry.cryptonomos.com