11 Sep, 2018, 08:00 ET
A simpler way for landlords to protect themselves and for tenants to secure their ideal dwelling without tying up their savings
MONTREAL, Sept. 11, 2018 /CNW Telbec/ - Locnest, a new Canadian-based company offering Swiss-style residential lease guarantee services, is bringing the proven lease guarantee to Canada, offering landlords more security and tenants more options.
The 2016 census reported nearly 4.5 million households rented by tenants in Canada. In many jurisdictions, these renters are generally asked by their landlords to provide a security deposit – especially in highly competitive rental markets. Enter Locnest: a new service that solves a critical issue around housing access that occurs in communities with high rates of rentership. Locnest's lease guarantee can replace security deposits in jurisdictions where they are permitted (all provinces except Ontario and Quebec) and act as a guarantor or co-signer in jurisdictions where they are not.
Peace of mind for landlords
In most Canadian provinces, Locnest's lease guarantee can replace security deposits. In Ontario, where landlords are forbidden from asking for security deposits and where only last month's rent deposits are authorized, and in Quebec, where landlords have no protection as neither last month's rent or security deposits are allowed, Locnest can act as a guarantor or co-signer.
Locnest's lease guarantee insulates landlords from many of the risks of renting, reimburses them quickly in case of default or property damage and protects them for higher amounts. Whereas security deposits, where legal, often only cover up to one month's rent, a lease guarantee can pay up to $5,000 in case of default or property damage. It also reduces the administrative burden for landlords by assessing the solvency of prospective tenants through credit checks, by eliminating the administrative tasks associated with holding security deposits, such as opening separate bank accounts, saving landlords time and money. Landlords can benefit from this guarantee at no charge by asking their prospective tenants to get a guarantee through Locnest.
Peace of mind for tenants
Landlords request security deposits to help guarantee that their property will be well-kept. But tenants at every income level can find having their money tied up for the duration of the lease burdensome. Furthermore, tenants are required to pay a security deposit when signing a new lease, while having to wait to the end of their current lease to recover their previous security deposit, resulting in them having two deposits tied up for a certain period of time.
For the cost of a modest annual fixed-rate guarantee fee, and subject to a credit check, Locnest can act as a guarantor, freeing tenants from this constraint and leaving them with more money in their pocket. With its lease guarantee, Locnest helps reassure a prospective landlord, while providing tenants with easier access to their desired housing. As a Locnest lease guarantee is evidence that the solvency of a tenant has been vetted, prospective tenants guaranteed by Locnest have a competitive edge. And tenants are guaranteed that the money will only be paid to a landlord in the event of an enforceable judgment. With a very efficient online application process, Locnest's Certificate of Guarantee can be issued in 24 hours or less.
"In highly competitive housing markets, landlords are demanding more guarantees from their tenants," says Locnest President Sébastien Barrillier. "Locnest's lease guarantee service creates a win-win for both parties: landlords are guaranteed both a vetted tenant and security for their property, and tenants are able to access more housing options."
Launched in February 2018, Locnest's lease guarantee services are available to landlords and tenants across all Canadian provinces and territories.
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 Quebec, 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 80 per cent market share in Switzerland.
For further information: Michael O'Shaughnessy, H+K Stratégies, 416. 413. 4732, [email protected]
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