- Down payments will be made within one business day and landlords won’t have to wait until the due date;
- With the new feature, the company pays the rent even before the tenant settles the bill.
Brazilian home rentals unicorn QuintoAndar is testing a new feature in its platform. Now home and apartment owners may ask for an advance in rental payments they would only receive the following month. By opting for this “line of credit”, landlords will have to accept a discount to be applied on the front deposit.
According to Folha de S. Paulo, landlords taking part in the feature’s test were informed, by email, phone call or text message, of the possibility of requesting the advance payment, which is transferred within one business day.
Unlike in traditional real estate, QuintoAndar model does not require any type of guarantee from tenants (neither guarantors, nor guarantee insurance). In addition, the entire income assessment and contract negotiation process is done digitally, which also helps to save time.
Part of QuintoAndar’s strategy is guaranteeing the rent payment on the 12th of each month, regardless of whether the tenant has paid on the correct date. In the traditional rental system, the real estate agency is only an intermediary and does not cover any delay in payment. With the new feature, the company will pay the rent even before the tenant settles the bill.
QuintoAndar’s communications director, José Osse, told Folha that before the company officially launches the service, the whole model is being analyzed. Not even the cost of the advance is settled. QuintoAndar website gives an example of a 5 percent discount on the amount paid to the owner, but rate is still being tested and discussed upon.