New Delhi, 29 March 2023: Eqaro Guarantees, a technology led financial guarantees company, announced its partnership with Rent Ok, a super app for residential renting that enables you to advertise your property, schedule visits, complete tenant KYC, rent agreement and police verification, automate rent collection and accounting. The partnership will enable zero-deposit homes to young professionals and students across the country.
Over the next decade, an estimated 300 million Indians will migrate to the top 100 cities in the country, leading to a robust growth in rental yields, creating the need for fractional investments and resulting in quicker property turnover periods among tenants. This will be fueled further by the growth of the millennial and Gen Z populations across India. This generation has found it increasingly difficult to rent properties due to the large security deposits ranging from 2-12 months of rentals. The partnership involves building a comprehensive ecosystem of landlords and tenants and making available zero deposit homes at over 12000 properties in more than 220 locations across the country. The Zero deposit homes will be powered by Eqaro’s Rental Bond, a guarantee that protects the landlord in the event of a default by the tenant. The rental bond acts as a replacement to the security deposit & covers unpaid rent, lock-in period if any, damage to the property and unpaid bills as set out in the lease agreement.
Mr Pankaj Bhansali, Chief Operating Officer of Eqaro Guarantees said while reflecting on the partnership, “We are delighted with our partnership with Rent Ok. Rent Ok has a wide spread presence across the country including key markets like Delhi NCR, Hyderabad, Bangalore, Mumbai & Pune. The partnership envisages a holistic and a growth partner approach to the residential rental segment. While rental bonds provide the landlord with a credit verified and an assessed tenant resulting in faster occupancy with higher rental yields, our customized guaranteeing solutions will help the landlords and co-living operator partners get access to finance by way of advance against rent receivables or collateral free loans. The tenants on the other hand get access to their dream home without the need for security deposit. For the first time in India, the tenants will also be able to carry forward the benefits of their good tenancy track record on to their subsequent tenancies.
Srijan Raj, CEO of RentOk said: Srijan Raj, CEO of RentOk said: Our partnership with Eqaro aims to make renting easy for millennials and Gen Z when they move away from home to study or start their first job in a new city. Our goal is to offer the largest collection of zero-deposit homes to tenants across the country while helping our customers (co-living/PG operators, flat owners) find creditworthy tenants backed by an institutional guarantee. Right now, we add 15,000+ new tenants every month. With Eqaro, we want to make sure that these new tenants do not face the challenges of dealing with high security deposits. This partnership also enables collateral-free working capital loans for property owners, allowing them to scale their operations without putting up any collateral. We have also introduced the concept of advance rental for co-living/PG operators in India, whereby they can get their rent in advance through Eqaro’s lending partners to meet their working capital requirements.