Rent Now Pay Later Creates Infinite Possibilities For Landlords and Renter
Homeownership: Is The American Dream Now Unattainable?
Since the birth of our nation, homeownership has been considered as a core component of the American dream, it is, after all, one of the biggest investments many people plan for in their lifetime. It symbolizes autonomy, achievement, and upward mobility to the middle-class. A big part of that American dream is to become a landlord and build wealth through real estate.
Despite the fact that a majority of Americans are working towards homeownership, they worry about the hurdles that make homeownership seem impossible– like saving up for a down payment, their crippling student loan debt, and low credit scores that make it hard to access credit.
U.S. Home Prices Are Soaring, but Income Has Remained Relatively Flat
For the mom and pop landlords who manage to afford investment property, things haven’t been too easy either.
During the pandemic, the massive job-loss, stay-at-home mandates and eviction moratoria affected the landlord’s ability to collect rent and they saw a big drop in on-time payments.
Landlords Struggle To Pay Bills
Throughout 2019 to 2021, we have seen a steep deterioration of on time payments. These were only interrupted only by the months when the big stimulus checks which allowed more households to make timely rent payments.
A Common Anxiety Causes a Gap Between Landlords and Renters
Though the global pandemic affected each party in different ways, fear and uncertainty is mutual among renters and landlords.
While renters find ways to balance their paychecks, landlords still face the pressure to sustain collections and maintain growth and fear they need to make increased capital investments, diminishing their cap rate over time.
The sad truth is that both sides are dealing with the same problem. But are there mutually beneficial solutions to ease their shared anxiety?
Closing The Landlord-Tenant Gap
What landlords do not realize is that renters value flexible payments and that they are willing to pay more for the convenience.
In a survey done with renters and landlords, over half of renters in our survey said they’d pay more for flexible payment options in a rental property. Less than a quarter of landlords thought renters would pay more.
Let us brings Flexible Rent And Financial Empowerment with Rent Now, Pay Later
The financial uncertainty brought about by the COVID-19 pandemic highlighted the need to have a budget, however small it may be. Saving every penny has become more important than ever before.
Enter LetUs by RentMoola, a FinTech company easing a common anxiety and closing the renter-landlord gap. Their platform is the first to offer Rent Now, Pay Later at checkout.
“As renters and landlords ourselves, the LetUs team has a deep understanding of the anxieties that affect both sides of the equation,” shares Manimozhi. “We are the first company to combine rent with financial services. It just makes perfect sense, since rent payments are typically a household’s largest expense.”
Rent Now, Pay Later benefits both the landlords and the tenants since the service allows landlords to collect in full and on time while providing renters with the flexibility of an interest-free line of credit at checkout. But there is a lot more that can be done to put landlords and renters in better financial standing.
Because landlords and property management companies aren’t considered creditors, they do not automatically report your payment history to the three major consumer credit reporting bureaus.
This means renters could be missing out on the easiest way to build their credit without debt. Reporting rent to the credit bureaus can be beneficial to everyone–not just for individuals who are starting out or have had a hit in their score.
Reporting rent payments to the credit bureaus is perhaps the easiest way to build credit without debt and it can be done directly on the letus platform. “We know a favorable score can give potential homebuyers an advantage in securing a mortgage” shares Manimozhi. “Instead of being a deterrent to American Dream, rent can be a tool to reach their next financial goal. That’s why we make it simple and accessible.”
Ultimate Flexibility With Zero-Login 360° Payments
At letus, payment flexibility is at the core of their business and goes beyond their Rent Now, Pay Later service. The platform makes rent payment convenient, simple, and inclusive for both renters and landlords by offering the most extensive payment options to accommodate renters across all demographics and payment habits with the LetUs Wallet. Renters have the flexibility to pay with any payment method they prefer, from cash to checks, debit and credit cards, bank transfers, Rent Now Pay Later, pay by text, digital wallet, and even crypto.
And all this can be done without complicated logins. Renters and landlords can simply sign up on their own and transact as if making a venmo payment.
From Burden To Benefit
Rent and rent-related payments have long been seen as a burden and a deterrent to financial stability. “Our goal is to empower renters and give them a stepping stone to their next financial goal–whether it’s to save for a downpayment, to increase their credit score, or to simply be able to balance their paychecks,” continues Manimozhi. “And for landlords, LetUs empowers them to not only stabilize their collections, but also increase the value of their holdings.”
LetUs is shifting the way the rental industry has operated for decades. And during a time when renters and landlords have felt the strain the most, the company has provided relief and hope.