New Opportunity to Rent Apartments Without Deposit and With Insurance Protection
Estonian startup Rendin.co introduced a new rental agreement platform that, in cooperation with ERGO insurance, frees tenants from paying burdensome security deposits, guarantees owners protection against non-paying tenants, and allows for concluding a digital rental agreement in just a few minutes.
According to Alain Aun, the CEO of Rendin who recently entered the real estate market, their mobile application that can be downloaded to any phone makes concluding a rental agreement significantly safer, faster, and easier, all while being completely paperless.
"This is a unique service in the world today that solves what we might call the non-paying tenant problem for real estate owners. If rent payments fail to arrive, the owner doesn't need to worry, because insurance guarantees them the missing income for up to 10 months and also takes all necessary steps at its own expense to remove the non-paying tenant," said Aun.
Aun arrived at this service, which was developed in Tallinn over nearly a year, through personal experience. Throughout his life, both in Estonia and abroad, he has encountered non-paying tenants when renting out his home, and twice when renting an apartment himself, he lost his security deposit because the owner dishonestly kept it, citing unfairly discovered defects in the apartment.
With this new service created by Estonian developers, the risks for both the owner and the tenant are hedged, and it allows tenants to begin renting a new home with significantly lower startup costs – without a security deposit.
Allegedly, approximately 50 billion euros are currently tied up in the European real estate market, which tenants have paid as security deposits for apartment or house rentals and which are currently sitting unused waiting. "On one hand, this is burdensome for the tenant, and on the other hand, it doesn't nearly cover all the owner's risks. Rendin's new service is a solution to this serious problem," explained Aun.
Among real estate portals, Rendin's service is offered to both real estate seekers and providers by Estonia's most innovative portal Kinnisvara24.ee, whose product development and marketing director Laura Tammeorg said that Rendin.co solves several acute problems in the real estate market and could fundamentally change Estonia's rental market.
"Currently, due to the mostly mandatory security deposit requirement, the initial payment for tenants is often too large. At the same time, for example, from a homeowner's perspective, a security deposit is not always sufficient, as it may not cover emerging problems.
Rendin's service also provides a better opportunity for, for example, foreigners, families with children, or pet owners, who have previously had a harder time finding a suitable apartment," said Tammeorg. "We added this new option to our portal for both real estate agents and private owner advertisements. Such advertisements receive a separate "No Security Deposit" marking and can be found in the real estate search using a special filter."
Through the Rendin.co website or mobile application, rental agreements concluded include rental agreement insurance from ERGO, one of the Baltic region's leading insurance companies, which guarantees unique protection for both the owner and the tenant.
"We value new and innovative solutions that make services more convenient for people. Rendin won our trust because it meets all the expectations we set, and no one else in Estonia or our neighboring countries offers anything like this. I believe this will be a breakthrough not just in Estonia's real estate market," explained Andres Konsap, head of the insurance division at ERGO Insurance SE.
View no-security-deposit advertisements here>>
