Rent Advance™ is completely non-recourse to you if the tenant doesn’t pay. If the tenant stops paying, you will NOT be required to pay back the advance, nor will you need to extend the agreement, substitute a new lease, have your credit impacted, or anything else. When a tenant defaults on their rental payment obligations, property managers will start the eviction process in accordance with state and local laws.
Is the Rent Advance structured like a loan? If yes, what is the interest rate.
Rent Advance is not a loan, we are purchasing the future rent receivables from the owner. The offer will be 90%-94% of the total amount the owner would receive over the period of time outlined in the offer. The biggest factors that determine the discount will be the Rent Amount and the Length of the Advance. The higher the rent amount and the longer the period of time, the lower the discount will be.
Would an owner be billed for monthly fees or are those taken out in advance? Is utility income still direct deposited?
Maintenance fees will be billed and paid as opposed to withdrawn from the rent?
Monthly fees (mgmt. fees, tenanting fees, lease renewal fees, etc.) will be deducted prior to the advance offer being sent. See attached sample Transaction statement that is provided with every Rent Advance offer. Maintenance fees will be billed and paid by the owner as opposed to being withdrawn from the rent, that is correct.
If I opt in now, can I opt out at any point in time?
You can opt-out within the first 60 days of enrolling. Once the 60 days has passed, you are able to opt-out each time the existing lease associated with your rental until expires.
If a tenant violates or breaks the lease, but I have already received the rent in advance, would I required to pay back the amount of rent owed from the tenant?
No! Rent Advance is non-recourse and if you accept the Rent Advance offer, that money is yours to keep. There is no repayment obligation.
How do I know if my property qualifies for a Rent Advance™?
A property qualifies for a Rent Advance™ offer if:
- Minimum 6 months remaining on a new or existing lease
- The monthly rent amount is between $800 and $5,000 per month
- Rental payments are not subsidized by rental assistance programs (section 8 or others)
- Existing leases are scored using a proprietary algorithm that reviews a tenant’s payment history and leases with Non-sufficient Funds (NSFs) or late payments may not initially qualify for a Rent Advance™