61% increase in demand for rental guarantees from consumers spurs the introduction of the B2B product
We've launched a B2B version of our tenant guarantor product, Homeppl Guarantid, designed for businesses. The introduction of the new service is in response to a nearly 10-fold increase in tenancy fraud from 2020 to 2021.
Tenancy fraud and the demand for guarantees from letting agents, landlords and Build to Rent properties (BTR) has dramatically increased, driven largely by an increased need to rent due to rising house prices and shortage of housing. Our latest data reveals a sharp rise in tenancy fraud from 2020 and particularly at the start of this year with a 75% increase in tenancy fraud from January to February. The two most common types of tenancy fraud include creating fake financial documents and falsifying employment references.
To address this rise in tenancy fraud and demand for guarantors, and to allow businesses to say “yes” to more new tenants, we developed Guarantid. Homeppl Guarantid utilises Open Banking, Machine Learning, instant decision engine, fraud detection tools and behavioural analysis, to offer rental guarantees.
After previously existing as a consumer product, Homeppl Guarantid is now available for businesses, where we guarantee the rent of any tenant that we have approved, ensuring the full rental income for that business. With Homeppl Guarantid, we secure rent for landlords, offering instant payout for rent in default. For letting agents, landlords and BTR properties, the service offers same-day payments and covers any rent amount. And with our approval rate of 96% it allows businesses to provide tenancies to more people and improve revenues.
Alexander Siedes, our CEO and Founder, said: “After the success of our consumer service, it became abundantly clear there was an increasingly acute need for a product of its type for businesses as growing fraud makes it harder to onboard tenants. With Homeppl Guarantid businesses can say yes to more prospective tenants, guarantee the rent of that tenant while dramatically reducing fraud.
“By giving both consumers and businesses the ability to rent, when they may otherwise have struggled to, we’re well on our way to achieving our mission of creating financial inclusion for all.
“And at the same time, we’ve made the crucial step of bringing our two brands - Homeppl and Guarantid - together to underscore this mission. This will see both the brands merging to come under one umbrella of Homeppl.”
This new B2B offering comes as the two sides of our business merge, with Homeppl and Guarantid previously operating as separate entities. We previously focused on preventing rental fraud and qualifying tenants, working with letting agencies, online marketplaces and Build to Rent Companies, and Guarantid licensed our technology to offer rental guarantees to people who require guarantors. Now, the two offerings will both fall under the Homeppl brand.