MONTREAL, June 3, 2019 /CNW Telbec/ - With the annual moving season on its way and at a time when there is a shortage of rental housing, many potential tenants are facing a worrying situation: they still don't know if they will be able to find a quality dwelling by the traditional July 1 moving day. Often, these prospective tenants have not been "chosen" by landlords who are currently enjoying a market where demand is higher than supply.
Landlords, for their part, are often facing the opposite situation, with outgoing tenants leaving a dwelling in a deplorable condition requiring major upkeep.
Locnest, a Canadian company based in Montréal, offers an attractive solution for dealing with these issues. Its residential lease guarantee service offers both landlords and tenants more security because the guarantee replaces security deposits, which are not permitted in Québec.
"Tenants who are unable to find an apartment by this time are often the most financially vulnerable," explains Patrick Gisiger, President and co-founder of Locnest. "Landlords, who are often spoiled for choice, will tend to choose tenants who offer them the most financial security. Our solution protects landlords by providing a guarantee against possible non-payment of rent. That enables them to open their doors to potential tenants whose financial situation they were unsure of."
In this way, Locnest protects the landlord-tenant relationship not only throughout the duration of the lease but also upon its termination, when the occupant moves out of the residence. The guarantee can be applied to any damage sustained by the dwelling.
This lease guarantee can pay up to $5,000, assuring the landlord of better protection than a security deposit would offer. Fast reimbursement in case of default on rent payment or damage to the apartment provides landlords with additional peace of mind.
The annual fee, payable by tenants, is 8% of the guarantee amount—for example, a cost of $160 a year to a tenant for a $2,000 guarantee.
Locnest also frees landlords of burdensome administrative costs and saves them time and money by assessing the solvency of prospective tenants through credit checks and by eliminating the administrative tasks associated with holding security deposits, such as opening separate bank accounts. Landlords can benefit from this service at no charge by asking their prospective tenants to be guaranteed by Locnest.
Offered since early 2018, Locnest's lease guarantee service is available to landlords and tenants across all Canadian provinces and territories. Locnest's sales have tripled since early 2019.
Locnest provides lease guarantee services to Canadian landlords and tenants, replacing the burdensome traditional security deposit in jurisdictions where they are permitted, and acting as a guarantor or co-signer in Ontario and Québec, where they are not permitted. Locnest provides landlords with peace of mind, insulating them from many of the risks of renting, offering higher financial coverage and reducing the administrative burden. Locnest provides tenants with the opportunity to secure the dwelling they really want without tying up their savings. Built on a successful 20-year-old Swiss model, the lease guarantee model holds an 20% market share in Switzerland. To learn more, please visit www.locnest.com.
For further information: Valérie Gonzalo, 514 626-6976, [email protected]