Added Value Spotlight
Advancing the move towards a decentralized sharing-economy
While the essence of the real estate industry focuses on assets and properties, Rentible focuses on people. Be it landlords, who lease out rooms in their properties to unknown people and suffer from a lack of control over the screening process of their tenants, or be it tenants, who in most cases move into a flat and share it with people they have never met before or know very little about, in a neighbourhood or country they never visited.
In the “traditional centralized market”, rental scams and fraud in which tenants transfer deposits to reserve non-existing properties are rampant.
In Florida, 18 families fell victim to a rental scam by the same culprit, as each family transferred upfront a deposit of $1000 to secure the same property, only to discover that it was not available. In another instance, expats in Spain and Gibraltar fell victim to scammers who tricked prospective tenants into sending them €1000’s in total deposits before fleeing to Italy. In the UK, in London, an online scammer deceived 17 victims and embezzled their paid deposits for a room which he was supposedly offering online.
Landlords will benefit from the elimination of expensive third-party intermediary costs, including brokerage commissions and service fees. This will enable landlords to lower rent prices without lowering their income levels, boosting their liquidity by creating more attractive offers for flat-seekers and garnering greater visibility for their leased properties in the marketplace.
Landlords paying on average 12% in annual fees to brick-and-mortar management agencies and centralized online platforms charge up to 17% from both parties - landlords and tenants.
With each country and city having different local regulations, tenants might not be familiar with the various requirements for concluding lease agreements, which may include: “credit scores”, “residency permits”, “letters of reference”, etc.
Our vision is to be the first digital marketplace for decentralized management of mid-to-long-term real estate rentals, whether brick-and-mortar properties or virtual ones across the metaverse.
Sending and receiving rent payments through the blockchain eliminates the need for costly intermediaries, allowing the tenant and landlord to hold control over their funds and benefit from secure low-cost transactions.
In addition, as technology progresses and more blockchains mature, the associated costs will lower further, as seen in the case with ERC20 gas fees compared to BSC network fees.
When leasing a property, a deposit often equal to around two months of rent will be required as a guarantee by the landlord. Rentible will seek to enable depositors to earn on these deposits via 3rd party DeFi partnerships if both parties to the rental contract agree. In addition, participants in the platform hat act as validators can be rewarded with tokens upon launch of the arbitration and resolution module.
The initial beta of the platform is planned to also include the marketplace structure for metaverse properties, which will evolve to contain an aggregator of virtual properties and an analytical toolkit showing market sentiment of metaverse virtual real estate transactions.
As an ecosystem with a real-life presence across cosmopolitan cities worldwide, Rentible will seek to collaborate with local artists to generate ERC-721 collectables celebrating unique cultural landmarks and experiences in each relevant city.