Rendin, An Estonian PropTech startup that seeks to improve the home rental experience, offering no deposits, has raised € 1.2 million in seed funding. Supporting the round are Terra Ventures, Iron Wolf Capital, Trueit Ventures, Atomico’s Angel Program, and Startup Voice Program.
Launched in Estonia in March this year and currently expanding in Poland, Rendin operates a long-term rental platform that promises to smooth the process between landlords and tenants. Its title feature is an insurance-backed solution meaning that no deposit is required from tenants.
The broad premise is that by further digitizing the rental process and adding an insurance layer, further trust can be created between the parties, hence increasing occupancy rates.
For landlords, Rendin has created a “settlement agreement service” with some guarantees and insured those risks through a partnership with ERGO Insurance SE (Munich Re Group). So, for example, if a tenant causes a loss or ends up in a loan, the owner of the property is covered. The agreement is handled through the startup’s app and platform that plugs into the rental marketplace and real estate CRM on the backend to provide a fully digital experience.
“We publicly launched in Estonia on March 10, 2020, two days before we went into an epidemic lockdown,” Rendin co-founder Ellen Aun told me. “It really seemed like the world was falling apart and the risks of renting a house were high. We had to reinforce parts of our product insurance very quickly to accommodate the changes around us.
“Suddenly we had encouraged tenants to lose their income, to leave the country in a hurry, and more. Our learning curve was tremendous. We felt, if we can keep it alive, then we can keep anything alive. The last eleven months have been consistent evidence for us that the concept of Rendine can be tolerated.
For a long time, Rendine has been building what Owen describes as “a new standard in house rent.” The first step is to manage the risks of the rental process to help establish trust between landlords and tenants. This has seen proctec startups dealing with “end-to-end-end value chains”, contracting, evidence-based handovers, preventive insurance flows, loss control, and claims handling.
Aoun says that Reindin’s insurance product provides more protection to landlords than regular deposits, while also including some risks for tenants. “Insurance is a tool that helps Rendin solve real life, often in the event of renting, there are complex situations for both landlords and tenants,” he explains. “In the Reindin platform, tenants do not have to pay security deposits, but this is only a feature, not a core product. Trust is the name of the game ”.
To generate revenue and cover insurance costs, Rendin charges 2.5 percent of the monthly rent. This can be paid by the tenant or landlord. “More and more landlords choose to pay the Rendine fee because it helps to find new tenants faster,” Aoun says.
In competition, Rendin is not competing with real estate listing sites or agencies, and instead can be thought of more as a plugin that can be easily integrated into the business processes of listing sites and agents .
The co-founder of Rendine claims, “similar at first glance,” although there are some no-deposit startups around their business model, it is completely different. “Most of them are essentially set up Credit business That collects interest from tenants with real estate agencies to serve the demand for them, but they actually do nothing to help reduce the risk for the parties [involved]”.