Two Possible Rental Industry Game Changers
Due to new technological developments, the real estate industry (like most industries) will change over the next decade. Two upcoming innovations in particular seek to revolutionize the rental industry and will significantly improve landlords’ toolboxes. These probable game changers could transform the relationship between landlords and tenants and change how the overall rental property market works. Our team of tech-savvy South Florida real estate professionals aims to inform our clients of any changes in the real estate industry. Below, we discuss these exciting new developments.
Rent Prices Will Be Determined Through Auctions
Rent auctions, not just landlords, will decide how much tenants will pay per month. A South African startup recently launched a digital platform called HouseMe, which allows landlords to add their rental listings and let potential tenants bid on them. Based on what they believe the market rent is, the landlord sets a reserve rent on a rental unit. Then, pre-screened potential occupants who sign up for the service get to place bids on that rental unit. This means that the final number will be closer to a true, fair market price and that the property will go to the highest bidder. Low-demand rentals will receive fewer and lower bids, while high-demand rentals will result in busy auctions. This new modality is forecasted to catch on because of its many advantages. For one, the true worth of a rental property will be better determined through these digital rent auctions. Another benefit is that landlords will be connected with the most enthusiastic tenants.
Rent Payments Will Be Deducted From Tenants’ Paychecks
Spark Rental is developing a system that will deduct rent payments directly from tenants’ paychecks. With this innovation, tenants will never miss a rent payment again, to the benefit of both landlords and tenants. Landlords will no longer have to constantly go after tenants who are late on their payments. Instead, they will always receive their rent on time every month. With this guarantee, landlords will be less prone to reject high-risk rental applicants or applicants with less than stellar credit scores. Those previously rejected tenants will then have access to higher quality rental properties. The system will also report on-time rent payments to credit bureaus which can further help tenants improve their credit.
These are just two examples of innovations that will have a great impact on the real estate industry in the years to come. Still, these two changes alone could lead to significant improvements within the rental industry that both landlords and tenants can benefit from.
If you are looking for a home for rent in South Florida, call Stein Posner today. Our team of South Florida real estate professionals can help find you the perfect rental home.