London based start-up, Homeppl, has raised $2million to continue its expansion in the UK rental market.
The tenant referencing platform assesses the UK’s 15 million tenants’ real risk level. This enables letting agents to safely fast-track growth without the risk of fraud, default, or the delays that restrict lets from the 1 in 3 tenants blocked by current archaic processes.
Rather than relying on outdated and unfair tick-box assessments, Homeppl says it is different in that it leverages Open Banking, proprietary behavioral analysis and fraud detection tests to assess the financial situation of potential tenants and ability to afford rent.
With COVID-19 putting pressure on personal finances there is an increased risk of defaults and frauds, confidence is now a key concern for many agents and landlords.
Homeppl say its approach means that up to 5 million tenants who are currently rejected by the system would be able to pass checks. These “invisible” consumers include the self-employed, international students and expats.
Simultaneously, Homeppl also boosts the security of landlords and tenants by ensuring no good tenant is rejected and catching the 1.5% of applications that are fraudulent.
Alexander Siedes, Homeppl co-founder, comments: “The rental market has used old credit check methods to assess whether a tenant can afford to pay. We need to stop imposing an unfair “tenant tax” on consumers and stop giving landlords false confidence – it’s time the market used a solution that’s fair for both sides and prioritises giving an accurate assessment. The pandemic is compounding this problem and has reinforced the need for a robust due diligence tool.”