Delivering on the promise of a totally new category in housing
January 21, 2021
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 a new category in housing 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 what a brand new category in housing even looks like. Afterall, hasn’t housing been the same since...forever? It’s a fair question.
Here’s how Rhove delivers on that simple vision—to turn every renter into an owner.
The Business Model
We developed a creative solution specifically for apartment complexes. The challenge we had to solve was aligning incentives for renters and landlords, allowing them to mutually benefit from the value of the apartment complex appreciating, and we had to do it without the headache of traditional equity or debt investments. It wasn’t easy, but it is a simple solution. 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 agrees to turn their renters into stakeholders.
- Rhove: We automate and administer the program, serving as a liaison between renters and property owners. We create robust user experiences, underpinned by a deep financial technology infrastructure to help us manage account ledgers, facilitate all payments and transactions, and handle invoicing and reporting.
- Renters: Renters can own a stake in their apartment, get paid every month as a stakeholder, and earn more if the value of their apartment complex increases.
We provide this service for a small fee on transactions, which we eliminate if you set monthly buys. In addition, we charge a monthly fee to the property owner for administering the program.
Why Do Property Owners Like Rentership?
We couldn’t turn every renter into an owner without the help of our visionary property owner partners.
Why do they love Rhove? We enable them to attract, engage, retain, and inspire the next generation of renters while more deeply connecting with their communities.
- Attract: Property owners decrease marketing and acquisition costs, and can turn leasing incentives into an opportunity to transform lives.
- Engage: Better than a one-time offer which is easily forgotten, Rhove addresses the evolving needs of today’s generation of renter.
- Retain: Promote longer tenancy with a differentiated offering, turning renters into brand advocates. Provide annual incentives of RNT to continue to live at a property.
- 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
Rhove is expanding access and opportunity in housing. We’re turning every renter into an owner. Empowering everyone to own a stake in our communities is where housing is heading, and we’re proud to lead the way.
The importance of ownership to our democracy 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 left most of us without any choice at all. It’s time we demand that housing meet us where we are, just as we ask of every other industry. It’s time we demand from real estate a better and more inclusive user experience, one that strengthens our communities.
If you agree, join us.