You’ll Never Go Broke After Paying the Rental Deposit on Blockchain
Innovations are finally in the game of long-term renting. Your security deposit doesn’t have to be that big.
As an undergraduate who left the parents house to start the educational journey, you know for sure that renting a place to live and study can be burdensome. The security deposits in the states like Massachusetts must equate a one-month rent. This may put significant stress on the limited student budget.
It’s fair to admit that an old-fashioned approach to long-term renting is still in the game, but it seems like old platforms are losing ground to those who bring innovations. Let’s consider something as fundamental as security deposits: is it easy to find that money considering a student loan you took?
Deposits have been in the rental industry forever, but nobody tried to redefine the way we use it and make it more affordable to rent a place. With technologies like blockchain entering the real estate industry, decentralized platforms are about to change the way we rent.
Deposits have been in the rental industry forever, but nobody tried to redefine the way we use it and make it more affordable to rent a place.
Being the first ever decentralized platform accepting cryptocurrency and running on the blockchain, Rentberry announced they are working on a solution that will benefit students nationwide and even worldwide. It’s called a co-signers network and operates as a crowdfunding platform for renters. The only difference is that when a tenant moves out, the backers receive the money back along with the interest and the renter only pay around $50 fee for the whole year.
The idea that lays under the hood is simple – any tenant can offer the community to back his security deposit. Students can invite their parents, Facebook friends or offer the Rentberry users to help them afford an off-campus housing.
Initially, you’ll only have to pay 10% of the security deposit and you’re all set. Your landlord will receive the full amount of the security deposit, just sign the lease and move in. Let’s have a look at the real numbers to make it clear.
In case your landlord asks for a deposit amount of $2000, you’ll only have to pay the $200. The other $1800 will be supported by your lease co-signers, parents, friends or anyone who wants to help you tackle this big fat check. Speaking of checks, remember we mentioned blockchain?
Rentberry operates on blockchain which makes all the transactions transparent and secure. To achieve that they launched their own cryptocurrency that will be implemented step by step. It will allow you to make instant rent payments avoiding bank fees and risks to face fraud.
Rentberry operates on blockchain which makes all the transactions transparent and secure.
BERRY token is the key element powering the core of the platform, so the co-signers network will operate on blockchain as well.
“The loophole is that we use our own cryptocurrency and it’s essentially decentralized. We are not mandated by law to put it into the bank because everything is done on smart contracts. It’s not even really qualified as a security deposit because it’s done on the blockchain, not in U.S. dollars.” – Alex Lubinsky, Rentberry CEO
The essential network guidelines will be designed to benefit both tenants and landlords. It includes having no need for a landlord to escrow this money and giving co-signers a chance to receive the interest up to 3-5%. You won’t need to pay hefty fees when moving in; your landlord still gets his financial guarantee. The win-win situation as it is.
The blockchain is not an ultimate solution to everything, but moving this needle towards affordable off-campus housing is something US students need right now. Platforms like Rentberry are pioneering the new approach to the long-term renting, and if everything plays out, student housing will become accessible for all.
Learn more about Rentberry at rentberry.com.
The Crimson's news and opinion teams—including writers, editors, photographers, and designers—were not involved in the production of this article.