Published on December 1st, 2021
Selling and renting out property has always been challenging for property owners. Property owners have to deal with potential homeowners and renters who take their time to make up their minds and then all parties have to deal with the lengthy process of transferring the home over or getting a tenant into their new home. iBuying made selling properties easier, and now iRenting is doing the same thing to rental properties.
What Is iRenting?
IRenting is a relatively new concept in real estate where a property owner transfers their property over to a company. The iRenting company uses AI and data to find tenants for the property and the property owner is assured of a reliable and regular cash flow from their property.
Property owners get the services of a professional company, assured income, and the peace of mind of not having to manage their property themselves.
To better understand iRenting and why it is such a huge deal in the commercial property sector, UpperKey, one of the pioneers of the iRenting concept, has put together a list of 10 things you should know about it.
1. iRenting Increases Your Revenue
The traditional leasing process that many property owners currently use has lots of hidden costs. These include agent fees, fees associated with the property staying empty between tenants, tenant concessions, and other costs. These costs can reduce the effective rent (the net rental income after deducting expenses and costs) by up to 35%.
iRenting reduces these costs thus increasing a property owner’s effective rent. Owners end up receiving a lot more per unit rented for each unit of time (per month or per year).
2. Property Owners Do Nor Have To Deal With Tenants
One of the most challenging aspects of being a landlord is dealing with tenants who are late paying rent and having to go through the process of requesting this rent or getting these tenants out of the property. The iRenter becomes the tenant and the first way they avoid all this is by finding tenants who will not be troublesome.
They do this using AI, data, and software developed in the Proptech space to “weed” out tenants who present a credit risk. Additionally, iRenters can find long-term tenants for your property to reduce the amount of time the property sits empty between one tenant leaving and another renting the property.
3. iRenting Allows Property Owners To Rent Their Properties More Efficiently
For property owners, the offer from an iRenter is quite compelling; the property owner leases their property out to the iRenter and the IRenter, in turn, guarantees monthly rent.
The iRenter does this by ensuring each of the units is booked consistently throughout the year. Also, the tenants who end up renting your property are reputable and high-quality tenants interested in renting a flat in London.
To attract these types of tenants, the iRenter makes sure that the property is decorated and designed to fulfill all the needs of a potential tenant.
By ensuring everything is in order, the iRenter reduces complaints about any aspect of the property such as the paint peeling off or the wallpaper being outdated.
4. iRenting Helps With Property Maintenance
Also, some iRenters will take maintenance out of a property owners’ hands. In these cases, the property owner does not have to think about modernising or maintaining their property.
The iRenter takes care of this so that they return the property to the owner at the end of their contract the same way they received it. The only downside is that iRenters who do this might offer you less rent to cater to these needs.
However, the fact that you do not have to deal with these headaches is seen as a fair trade-off.
5. iRenting Increases The Value of Your Property
One of the best ways to see how a commercial property investment is performing is to look at the occupancy rate as well as its income.
The occupancy rate signals to an investor that they can recoup their investment in a short time should they decide to invest in a new commercial property, such as a furnished apartment for rent in London.
This is because there are already tenants occupying the units in the property. It also shows an investor that they do not have to incur extra costs advertising the property to attract tenants hoping to rent a secondary home in London.
By reducing the costs associated with renting a property, an iRenter increases its income. Income is another indicator used by investors to see how long it would take to recoup their investment.
High-income properties usually attract the best investors who can pay the asking price. There is also the potential for the iRenter to keep increasing the income from the property, and this is also very attractive to investors.
6. iRenting Takes Advantage Of The Latest Technology To Ensure Occupancy And Income
Some aspects of assuring income like using Ai and data to only rent to tenants with low risk have already been explored elsewhere in this article. Another technology that iRenters use to increase occupancy and income is virtual tours. Technology now makes it possible for tenants to view a property without having to visit it.
Tenants can use these virtual tours to experience and explore everything about the property, from the paint on the wall to the type of heating used in the home.
The good thing about this technology is that the property can be viewed by numerous people at the same time. If someone requests a physical tour, an iRenter can make a digital key available to them to view the property.
This ensures more efficient house tour scheduling and has been shown to reduce the amount of time it takes for a property to be rented.
7. iRenting Is Not A Property Management Service
Property management services take a cut from what a tenant pays them. This is the same model that is used in Airbnb property management Paris or London. These management outfits use the property as-is and try to get the most out of it in this state.
This model does not work very well for a property owner, especially when you consider the percentage cut these property management services take out of the final rent.
On the other hand, iRenters like UpperKey finish the property they rent out to enhance the experience of your guests and tenants. All of this is included in the agreement and is the best way to get the highest rates for your property.
8. You Get Human Customer Service
A new hospitality trend is using AI to handle customer services. Many people feel this is impersonal and is why iRenters strive to provide customer service delivered by a real human. They do not leave all your concerns to be handled by their IT departments or AI chatbots.
Any property owners who have any concerns or would like anything addressed can talk to a real human. While some of your issues may be logged and managed by an efficient system, they are always followed up by a real human with real interest.
9. iRenting Provides Your Tenants With A Life Of Luxury
We are moving towards where people are perfectly OK not owning everything they need. The modern renter has the same thinking in that they want to live in a home that has the best furnishings and that is luxurious without saving for the furniture and other luxuries that come with their home.
An iRenter can make this possible for tenants by providing everything they need before they even move into the house. This includes everything from furniture and appliances to bedding and toiletries.
This arrangement is especially appealing for business people who might move around a lot and do not want to deal with the hassle of moving everything once they decide to change residences. They will appreciate a furnished apartment for rent in Paris or London.
People who would prefer this option are high-end tenants, the types of tenants you want occupying your property.
10. Property Owners Are Always In Total Control
With all the benefits that come with letting an iRenter handle your property for you, many property owners can become excited about the freedom and peace of mind such an arrangement gives them. However, there is always the fear of losing control and getting in too deep.
The beauty of this concept is that most iRenters allow you to take a trial if you wish. You can enter a trial that is as long or as short as you would like. Many iRenters give you the option of 2-3 year leases to see how you feel about their services.
Also, some can make an offer for property management services instead of guaranteed rent. This way, you might not be guaranteed 100% of your rental income, but you still get to enjoy the services of a professional property management company.
While iBuying is a well-known concept in the commercial property sector, a lot of property owners do not know about iRenting. iRenting offers property owners lots of benefits, including the fact that they never have to deal with agents and tenants ever again.
The iRenter leases your whole property and guarantees rental income. They then handle everything about renting out the property including finding tenants, advertising the property, and taking care of it.