TORONTO, July 10, 2019 /CNW/ - Switzerland may be known for chocolate, cheese, and banking, but its latest export may be its best yet: the Lease Guarantee. It's a product that gives renters a competitive advantage, helping them save money and build wealth -- all in a market with less than 1% vacancy rate and an eye-popping projected rental price surge of 11%. While the current market disadvantages Millennials and newcomers, it intrigues the founders behind Canada's newest fintech company, Locnest, who saw the same thing occur in Switzerland 25 years ago, when rising rents priced too many renters out of the market. The Lease Guarantee became the solution that leveled the playing field.
A Locnest Lease Guarantee frees tenants from having their money tied up in deposits, securities and last month's rent for the duration of the lease, especially in those critical moving months where people are often on the hook for the last month's rent of the place they're leaving and the one they're moving to. That means they can keep more money in their pocket to save, invest, or use to settle into their new residence. Prospective tenants can also give themselves an edge by applying for a pre-approved guarantee.
"Think of a Locnest Lease Guarantee like the electric car; it saves money, it's better for everyone, and soon it will be everywhere," said Roger Giger, the Managing Director of Locnest, noting that "Lease guarantees are as common in Switzerland as Raptors fans are in Toronto."
Giger should know. He isn't just the managing director of the company; he's also a client. When he first came from Switzerland and had no Canadian credit history, he struggled to find somewhere to rent in Toronto. It wasn't until the company launched and he could get a Locnest Lease Guarantee that he was able to finally find a place to call home.
Landlords also love Locnest Lease Guarantees because it doesn't cost them anything, and it gives them more freedom to look beyond "which applicant has the very best credit rating" and choose the tenant who will best fit the culture of a building. A lease guarantee insulates Landlords from many of the risks of renting, including damage, which Ontario landlords are unable to legally collect from the tenant. It also reimburses them quickly in case of default or property damage -- and even protects them for amounts higher than one-month's rent.
About Locnest (locnest.com)
Locnest helps people get the apartments they want by providing lease guarantee services to Canadian landlords and tenants. This can replace the burdensome traditional security deposit in jurisdictions where they are permitted, and the company acts as a guarantor or co-signer in Ontario and Quebec, where they are not permitted. Locnest is the best legal solution, providing landlords with peace of mind, insulating them from many of the risks of renting, offering higher financial coverage and reducing the administrative burden. Locnest gives tenants with the opportunity to secure the dwelling they really want without tying up their savings. Built on a successful 25-year-old Swiss model, the Lease Guarantee model holds almost 30 percent of market share in Switzerland with different companies exploiting it.
For further information: Susan McLennan, [email protected], (416) 568-5974