Long Term Home Rentals Are Undergoing Massive Change

In my latest article, I talked about the use of blockchain for a great variety of industries, including finances, groceries and real estate. I asked you to do yourselves a favor and get informed about Rentberry, however I will kind of highlight some of the most important parts of this company, in this blog post.

Briefly: Rentberry was founded in 2015 in San Francisco by Alex Lubinski. Their goal was to connect tenants and landlords through a decentralized platform, that would allow for tenants to bid on the apartments. Rental payments would go through the platform itself, while allowing for security deposits to be handled by investors (90%) and of course the tenants (10%)

What would be the reward for investors? A 5% annual interest on their money, paid via BERRY. So basically, Rentberry is an auctioning platform for home rentals, a means of paying your rent bill, a platform that allows for low risk investments, and eventually a lot more.

Some people will frown upon the bidding part of the platform and say “well…it’s going to up the rents in already populated and competitive cities.” And that is absolutely true! At the same time though, it offers transparency and an honest bidding process as opposed to the current – under the table – bidding wars. You don’t have to guess how much your next door neighbor is willing to pay for the apartment he is “competing” for. You will now know. At the same time, landlords are not obligated to accept the highest bid and select them as the tenant.

The platform will have a review system in place, which will allow for landlords to pick the best tenant, based on previous review scores and credit card ratings. So this way, the tenants win due to transparency, the landlords win due to knowledge on the type of tenant they rent to and everyone also wins financially. Rentberry has seen that on average, rents have gone down by 5% from the actual rental price.

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