Nigeria has been battling housing issues for years. According to experts, only about 20 percent of Nigerians own houses. Consequently, there is an estimated 28-million housing deficit, which requires about N21 trillion to tackle. So, Tope Adewoye, a professional with a wealth of experience in the financial and technology sectors, has established an initiative known as Rentease. He said that it was born out of the need to help people to get affordable rentals. Before it was established, Adewoye who is the managing director at Rentease said that the team visited Kenya, South Africa, and Ghana to conduct some simulations.
In the exercises, Europe was exempted because the team wanted to compare what they were doing in Nigeria and what their counterparts in other African countries were doing. The discovery was that rentals in these countries were monthly. In Nigeria, it was different. A lot of people struggled to pay their rent, running helter-skelter when it was time (usually at the end of the year). This was what brought the idea of the initiative. “We want to bring a system where people will now be used to a monthly contribution for rent,” he said.
Plan is to instil the culture, then facilitate monthly rentals.
So, because it was (and still is) not the culture in Nigeria at the moment, the company is bringing in finance first. Once the team brings in finance, they instil that culture in the tenants to finance the annual rents, while people pay back monthly. What Rentease is doing, in essence, is building a monthly culture of rental payments into people. As time goes by, the firm will become like a partner between tenants and landlords.
Once the culture is built, people who are already used to monthly rents will then be facilitating monthly rentals in Nigeria. Adewoye reveals that this is the bigger picture for the company. But for now, finance needs to be brought in to harness that. On what he meant by “bringing in finance,” he denies partnering with banks but said that the firm has liquidity which is being used to support the project. He said that landlords were not used to monthly rentals, but the company wants to build a culture step by step. And then, the team would go to the landlord and start educating them on the importance of monthly rent. Once that is done, Rentease will offset annual rentals, while the tenants pay back monthly.
Systems put in place targets salary earners for now.
Concerning the standard of rentals, Adewoye said that the company has all categories of standard houses on its platform as far as it suits customers’ style. According to the director, properties put out on the platform are standard properties. “There are some properties that when you look at them, you know that they are not suitable for a salary earner, which is our target audience for now,” he said. The company is targeting the salary earners at the moment.
Furthermore, in terms of default and securities, the company has put systems in place. This is because it is a representative of both the tenant and the landlord, and the tenancy agreement on the platform is signed between the landlord and the firm. As a result, Rentease is the subletter. In basic terms, the firm is the tenant of that property, who then sublets it to people for monthly rentals. That is the arrangement we have with the landlords and the tenants. Adewoye said that a time would come when a customer has to sign a sub-tenancy agreement with them because they had already pre-signed an agreement with the landlord posting their properties on our platform.
Insurance is included in customers’ deals when renting.
Also, the properties are insured by insurance partners that the company works with. Therefore, Rentease gives its customers insurance coverage in case of death, sickness and critical illnesses. Finally, the firm’s internal staff, which are called Super Agents, have been given a target to get a direct mandate from landlords. They source properties from the landlord directly. The company has also engaged some partners who are members of the Association of Estate Agents in Nigeria so that they are provided with workers which the firm recruited on its payroll. These people have the job of uploading the properties directly. In terms of salary, the company does not discriminate but advise customers based on their debt-to-income ratio.
Related Link
Rentease: Website
Firm helps build culture of monthly rentals. – Rentease boss says initiative is to ease monthly rental payment in Nigeria. – Express your point of view.
That’s really interesting to hear about the initiative to build a culture of monthly rentals in Nigeria. It’s great to see companies like Rentease taking steps to ease the burden of monthly rental payments for individuals in our country.
Monthly rentals can provide more flexibility and convenience for tenants, especially those who may have varying income streams or prefer shorter-term commitments. This initiative can help address some of the challenges faced by individuals in accessing affordable housing and managing their finances.
By promoting a culture of monthly rentals, Rentease is contributing to creating a more inclusive and accessible rental market in Nigeria. This can have a positive impact on individuals and families, allowing them to have more control over their housing expenses and potentially improving their overall financial well-being.
I’m excited to see how this initiative unfolds and the potential benefits it can bring to tenants across the country. It’s a step towards making rental housing more affordable and accommodating for everyone.
Rent Ease seems to have taken a fantastic initiative there. The strain of paying rent in Nigeria can be significantly lessened with monthly leases. It will be easier for more people to find housing without having to worry about making large initial payments if monthly rentals become increasingly common.
Monthly renting culture is fostered by the firm. Aiming to facilitate monthly rental payments in Nigeria, Rentease CEO said the effort is part of a drive to encourage monthly rentals in Nigeria. It’s great that Rentease is trying to alleviate the financial burden that comes with monthly rent payments for individuals in our country. Monthly leases offer tenants the benefit of greater flexibility and ease.