A new rental technology will help tenants get into homes without draining their savings and provide security to their landlord at the same time.
Fintech company Traity has launched Trustbond, powered by leading landlord insurance specialist Terri Scheer.
Trustbond helps landlords determine a person’s suitability as a tenant while providing them with the same level of protection as a traditional cash bond. It works by determining and measuring trustworthiness, as well as a tenant’s TrustScore using online data from Facebook, Twitter, LinkedIn, Airbnb, eBay and Uber.
Once eligibility has been established, the tenant pays an upfront amount that is a percentage of what a conventional rental bond would cost.
Traity CEO Juan Cartagena said that the idea came from his own experience of renting property, where as a new resident of the United States landlords were requesting rental cash bonds of up to $14,000.
“Trustbond recognises a person’s digital profile as an asset, putting money back in tenants’ pockets to spend on the things that matter to them,” the CEO said.
“It allows people who may have an unconventional working life, such as freelancing, or who have no rental history, greater access to the property rental market."
Mr Cartagena said that in addition to the financial incentives, Trustbond is a better way for tenants to show who they really are.
“It’s a way to build stronger relationships between tenants, landlords and property managers based on trust.”
Terri Scheer Insurance executive manager Carolyn Parrella said that there were key incentives for landlords to choose tenants who are eligible for Trustbond.
“Trustbond is based on the premise that good online citizens will also be good tenants. Only tenants with a high TrustScore are eligible,” Ms Parrella said.
“Trustbond gives landlords and property managers the ability to rate and review tenants. This encourages tenants to be responsible and motivates them to take care of their landlord’s property in order to keep their TrustScore high.
“These benefits can be achieved with the same level of protection as a conventional cash bond."
Ms Parrella added that Trustbond covers the same breaches of a tenancy agreement including unpaid rent, damage, broken leases and associated costs, without the need to go to a tribunal.
“Owning a rental property is a significant investment,” she said.
“We want to take the stress out of investing for landlords, support tenants to feel trusted and remove barriers to entry for renting. Trustbond will do just that.”
Trustbond is being launched in South Australia and will roll out to other states in the coming months.