Delivering on the promise of a totally new category in housing
October 20, 2020
When we set out to turn every renter into an owner, some people thought it was overly ambitious.
There were plenty of naysayers who said real estate has always been split into two asset classes—renting and owning—and that the status quo was too ingrained to create something entirely new by pulling from the best of both worlds. There was going to be too much friction, they assumed. Too much pushback to innovative ideas. “Property owners will never do this,” they said.
If you read about Rhove in Fast Company or in one of our Learn articles, however, you know we’ve introduced Rentership to the world. As you’re reading this, renters are becoming stakeholders in our communities and earning financial value from where they live.
You’re probably wondering how, in a mature, multitrillion-dollar industry, we created a brand new housing category. It’s a fair question.
Here’s how Rentership delivers on that simple vision—to make every renter into an owner—with a never-before-seen housing category.
The Business Model
We developed a creative solution that works for the multifamily sector, using financial incentives to turn renters into stakeholders without the headache of selling equity or debt. Simply, we took the best of renting, combined it with the best of owning, and discarded anything that wasn’t beneficial.
There are three key participants to make Rentership happen.
- Property Owners: Through a partnership with Rhove, a property owner creates a Rentership Pool. This pool represents a stake that is tied to the building value.
- Rhove: We automate and administer Rentership, serving as a liaison between renters and property owners. We make this relationship possible through technology and robust user experiences, managing account ledgers, facilitating all payments and transactions, and handling invoicing and reporting.
- Renters: From the Rentership Pool, renters claim a stake that appreciates along with the value of their community (literally the physical building itself). Renters can simply buy RNT from the Rentership pool and become a stakeholder anytime! They can sell their stake or hold onto it to earn an RNT Return monthly.
We’re able to provide our services through a small fee on transactions, which can be eliminated by setting up recurring buys, in addition to a monthly fee paid by the Property Owner.
Why Do Property Owners Like Rentership?
We couldn’t turn a renter into an owner without the help of our visionary property owner partners.
Why do they love Rentership? They’re able to attract, engage, retain, and inspire the next generation of renters while more deeply connecting with their communities.
- Attract: Decrease marketing and acquisition costs, turn concessions into an opportunity to transform lives.
- Engage: Better than a one-time offer, Rentership addresses the evolving needs of today’s renters.
- Retain: Promote longer tenancy with annual grants, turn renters into brand advocates.
- Inspire: Empower residents with an owner mindset, align incentives with the success of their property.
- Connect: Be part of the solution communities are asking for. Cultivate goodwill by turning renters into stakeholders.
Accelerating the Future of Housing
Similar to the way Tesla aims to accelerate the world’s transition to sustainable energy, Rentership is opening up access and opportunity in housing, turning every renter into an owner. We believe this is the direction where housing needs to head and we’re proud to lead the way.
The importance of democratizing ownership has been discussed for centuries, from Ancient Greek philosophers to America’s Founding Fathers. Only now do we have the digital tools necessary to truly make it happen.
The binary choice between renting and owning is no longer sufficient. In fact, it has left most of us without a choice at all. It’s time we make housing meet us where we are, just like we ask of every other industry. It’s time we demand from real estate a better and more inclusive user experience.
If you agree, join us.