New technology transforming the rental market

The article was originally published on rynekpierwotny.pl, and this entry is a reprint of the original.

We launched operations in Poland with two years of experience in the Estonian market under our belt. So far, we have verified a total of over 9.5 thousand tenant candidates in terms of their financial situation, and we have helped finalize over 2 thousand lease contracts

– says Piotr Kula from Rendin Polska.

He is convinced that the digital model of apartment renting offered by this company will be well received in Poland, too. That is because our market offers great development opportunities for companies such as Rendin, which enter it with innovative solutions.

The Rental Market Foundation estimates that currently, at least 1.2 million apartment owners rent out their property on the free market. Some do it on their own, and some use the services of real estate agencies. The role of intermediaries in the rental market usually boils down to connecting the contract parties, for which they charge one month's rent’s worth of commission. Some intermediaries screen tenant candidates in the Credit Information Bureau (BIK), in one of the Economic Information Bureaus, which has access to the debtor register, and in the "Restricted documents" system operated by the Polish Banks Association.

Tenant background check online

Landlords who work on their own do not have direct access to this information. All they can do is ask the prospective tenant to provide reports about themselves. If the tenant has nothing to hide, they shouldn’t be opposed. However, this kind of verification requires a lot of effort. Fortunately, there is a simpler solution.

Rendin has tools that allow it to verify a potential tenant in just a few hours. It saves a lot of time and comes at no cost to either the tenant or the landlord. Although we cannot guarantee that there will never be problems with a tenant who passed our background check, we do guarantee that if anything happens, we will deal with the consequences

– assures Piotr Kula.

Finalizing the lease agreement itself is not time-consuming eitther because it takes place online, on a special smartphone or computer application. In order to simplify the process as much as possible, contracts are signed for a maximum period of one year. That is because the law does not require a physical contract in such cases.

Rendin’s free tenant background checks

Landlords announce their rental properties in the Rendin application; then, potential candidates who have passed the background check get to submit their applications. If the apartment owner already has some candidates, they he can send them a link with an invitation to apply to the ad through Rendin so that the company can check their financial history.

Remember that potential tenants may include people who, for example, have fallen behind on their telephone bills or child support payments. This is a clear signal that collecting rent may become a problem at some point in the future. So far, almost one third of the people we’ve screened failed to pass the background check

– says Rendin Poland’s expert.

Importantly, this allows the company to not only protects landlords, but also its own interest. Why? Because Rendin provides a special surety to tenants who pass the background check. This means the tenant does not have to pay a security deposit, which is usually equivalent to three months' rent. The landlord, in exchange for agreeing not to charge a deposit, gains a guarantee from Rendin that in case of any damage, the company will cover the costs of repairs up to the amount of four month’s rent. The landlord can count on the same protection in case of unpaid rent.

How much does it cost to verify a tenant on Rendin?

The Rendin service is free for the landlord. The company charges a monthly fee of 2.5% of the rent, which is covered by the tenant. For example, if the rent is equal to 2,000 PLN per month, the tenant will have to incur an additional expense of 50 PLN per month for the entire duration of the contract, i.e. 600 PLN for the entire year. However, the tenant will get to avoid locking up a few thousand PLN on the landlord’s account.

This is not the only benefit. After the lease agreement is signed, Rendin ensures its proper implementation. It can even be said to be taking on the role of both the landlord's and the tenant's guardian. What does this role consist of? For example, both parties can count on the support of Rendin’s legal department or a translator in case they need mediation because of a problem.

"The tenant may also lose their job or fall ill and suddenly have a problem with paying their bills. Then, in addition to covering the rent payments missed by the landlord, we also extend a helping hand to the tenant. We have already helped people find cheaper accommodation, move to a new apartment, or pay for a moving company. To this day, we keep in our warehouse some personal items of a tenant who moved back to his family and could not take everything with him. We do not charge any fees for such assistance"

– says Piotr Kula.

What to do when the tenant won’t pay? Rendin has the solution!

Rendin's expert points out that the company does their best to help a tenant who has fallen into temporary financial difficulties, e.g. by allowing them to pay off debt in installments. The goal is to prevent problems from building up and… the tenant from getting evicted. Piotr Kula assures that so far the company has managed to avoid evictions.

The most important thing is to approach the matter with calm. When the tenant does not pay their rent, we react immediately. The landlord gets their money from us, and we clarify what the problem is and make an attempt to settle it amicably. Without the nerves and negative emotions that often accompany landlords in such situations

– says Rendin’s expert.

He emphasizes that the tenant must be made aware that it is not worth it to put up a fight because he would have to face lawyers specialized in eviction procedures. Therefore, they would not make any formal errors that could make the case drag on for years.

Likewise, tenants cannot expect to get away with damaging the apartment just because they did not have to pay the deposit. Although Rendin will cover the expenses as the surety provider, the company's lawyers will later collect the money from the unreliable tenant.

Rental apartment handover act

Piotr Kula points out that misunderstandings are to be prevented by the handover act, an attachment to the lease agreement that is also generated in the application. This document describes, with photographic evidence included, the actual condition of the apartment and its equipment, i.e. walls, floors, windows, furniture, and household appliances. Water and energy consumption meters’ readings are also listed so that the tenant does not incur any costs generated by their predecessor.

The original article appeared on the Rynek Primary website.