Spotahome launches a rental guarantee system that allows tenants to formalize the rental of a home online without providing a deposit . In addition, at the same time this model offers the owner coverage against defaults and damage to the property.
In this way, the Spanish platform for long and medium-term residential rental reduces entry barriers to rent for tenants, avoiding the initial payment of between 1 and 3 months of rent to access a home and provides security to the owners.
Incorporates protection to the owner for non-payment throughout the life of the rental
By signing a guarantee by the tenant, the guarantee incorporates, among other aspects, protection to the owner for non-payment during the entire life of the rental for up to 6 months of rent from the moment in which the breach occurs until the end of the contract.
And the same period for cases in which the contract has already expired. It also includes coverage for up to two months against damage or damage caused to the property by the tenant .
“This new rental system without deposit is an important advance with respect to traditional payment insurance, since they do not cover damages unless there is a judicial decision to evict.
Along with this, the deadline for claiming non-payment is 5 days , compared to the months that it means to initiate a judicial process. And, finally, in addition to covering long-term stays, mainly for residents of the city, it also incorporates the possibility of making contracts for months, rooms and that the tenants are international “, explains Alejandro Artacho, CEO and co-founder of Spotahome.
This rental system is based on an exclusively digital tenant verification process , which uses artificial intelligence and machine learning tools , as well as open banking technology to validate financial history, identify behavior patterns that determine their ability to pay and prevent fraud situations.
Up to 10,000 properties are expected to be added before the end of the year
One month after launching the no-deposit rental system, it is already available in more than 1,000 properties, of which 700 are located in Spain , and it is expected to incorporate up to 10,000 before the end of the year.
Since 2014, this platform, with more than 150,000 properties, eliminates the need for physical visits to the properties and offers future tenants virtual tours that include a detailed description, 360º photos, digital plans and high-quality videos. It is a system with which, to date, more than 120,000 tenants have formalized a 100% digital rental.