Square Yards’ ‘Zero Deposit Program’ entails a residential rental bond that acts as a guarantee in favor of a landlord that will compensate him in case the tenant defaults on his obligations under the tenancy agreement
Square Yards, India’s largest integrated real estate platform today introduced a novel ‘Zero Deposit’ program for property renters through its subsidiary Azuro, which provides Rental & Property Management services.
Square Yards’ ‘Zero Deposit Program’ entails a residential rental bond that acts as a guarantee in favor of a landlord that will compensate him in case the tenant defaults on his obligations under the tenancy agreement. The tenant on the other hand pays a nominal fee, which is a small percentage of the actual amount of the bond, to the bond issuing authority, issued in favor of the landlord, instead of a security deposit; a win-win situation indeed for both the tenant and the landlord. This innovative move will provide the much-needed respite to millions of home-seeking tenants from huge security deposits, making the search for their dream home easier, faster, and fairer.
Tanuj Shori, Founder and CEO, Square Yards said,” For too long, large deposits have been a burden for the home finders. With our new innovative product, tenants now don’t need to cough up deposits and can seamlessly move into professionally managed homes without taking personal loans and withdrawing their savings. Through this disruption, we are looking at a future where deposits will become a thing of the past. We aim to close 10,000+ rental transactions through this program by the end of next year”
With the Model Tenancy Act, approved by the Union Cabinet, set to overhaul the legal rental housing framework and create a vibrant, sustainable and inclusive rental housing market in India, the launch of Square Yards’ Zero Deposit Program will provide a sound fillip to the landmark Act by solving the discord in landlord and tenant equation and plugging the housing deficit, at a time when about 11.09 million homes are lying vacant in urban areas. Besides, the program will further institutionalize the renting business in India and help landlords with credit-verified tenants backed by an institutional guarantee from Azuro.
Source: Business World