CAN SMART CONTRACTS REPAIR THE REAL ESTATE INDUSTRY?

Smart Contracts are set to decommission dodgy landlords- here’s how.

Ah, the rental market. It is deeply flawed, and yet it absolutely thrives across the country. For decades, renters and landlords alike have dreamt of a fairer system where contracts are more reliable and funds exchanged are more secure.

If you’ve ever rented a home or space and found the exchange between you and the rental agency or landlord left something to be desired (your bond, for starters), you’d be forgiven for feeling apprehensive about trusting the intermediaries associated with rental contracts.  But for renters of the future, changes on the horizon look set to radicalize all of this. And here’s why:

Assuming you know what the blockchain is, you understand that it’s a technology that makes every involved party for complicated processes accountable. When we talk about accountability in the rental space, accountability is often paired with negative experiences – hence the roaring praise meeting proposals for rental agreements to be led by smart contract blockchain technology.

 What will Smart Contracts replace?

Picture yourself as a renter. You’ve applied for a home, and now, you need to prove you can afford it and prove you can live in the home responsibly. To do this, you need to:

  • Provide proof of financial ability
  • Provide proof of character
  • Provide rental histories
  • Provide proof of identity.

As a renter, you may be chasing forms and references for any number of days- days in which that home could be rented to another party or days where you simply don’t find time to tick all the boxes.

For landlords, this process is also riddled with problems. Fraud mitigation, the credibility of references, finding the right tenant on time- it’s a process that is time-consuming, in which multiple parties need to be involved and becomes backlogged very quickly, leading to high levels of dissatisfaction and frustrated applicants. It’s clear you need a solution.

Renting in the future.

Let’s say you apply for a home. Your application instantly triggers several automated processes that verify your position as a renter according to the listed renting prerequisites. As it’s an automated process, it’s almost instant, relies on zero intermediaries – and it’s completely secure.

The promise of less paperwork and hoop-jumping in the rental arena sounds great- but won’t the technology instantly discriminate against those who need housing most? This is where blockchain tech is truly beginning to shine. Earlier in the quarter, we posted about how Blockchain tech is being used to support refugees when they return to normalcy and need proof of identify and competency to support applications just like this. You can read more about it here:

Leasing in the future.

For landlords and agencies, smart contracts will offer much more than simplified application processes. For the first time ever, security deposits are beginning to look more straightforward. Rentberry, for example, offers to prevent security deposits from being unfairly disbursed or held – and it does this via an automated screening process that also includes automated logging of maintenance requests, screening of tenants, service providers and more.

Right now, across the globe, entrepreneurial companies and global giants alike are becoming increasingly engaged with Blockchain technology and what changes are due to come from implementing this tech into our everyday lives.

It’s evident that the real estate industry is due for this change- both renters and agencies stand to gain in lengths by it. If you’d like to know more about how these changes would benefit your business, contact the team of professionals at Blockchain Australia today for more information about the technology tipped to turn the rental industry on its head.

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