A new mobile app that pays landlords rent upfront for up to a year aims to revolutionise renting relationships.
Using Wectory, tenants still pay monthly, but landlords can choose to receive rent for six, 10 or even 12 months in advance.
After they sign up, landlords send an invite to their tenants who make rental payments via the app – on a monthly basis – but they get the funds paid directly to their account for a 12% fee.
CEO Mikhail Balabanov says one-touch payment and automatic recurrent payments means tenants won’t forget to pay rent on time.
Low on funds
Wectory also plans to roll out a feature offering renters short-term help if they’re running low on funds, where it can step in and cover paying the rent for a week or two, charging £50 for the first week and £100 for the second.
Balabanov hopes to emulate the huge success of Klarna – the buy now and pay later style of digital payment for online shopping, he tells LandlordZONE.
“The app will help eliminate so many of the tensions that can come to exist between landlords and tenants.
“By getting a lump sum, landlords might want to make renovations to another property and, as we aim to eventually extend the offer to 24 months’ rent in advance, that could even be the first payment on a mortgage.”
Wectory will have a soft launch in early November, starting with residential landlords, with plans to expand into the commercial sector.