How BNPL fits into the red-hot property rental market
It’s no secret that housing costs are skyrocketing. Soaring inflation and other macroeconomic factors have increased the average monthly rent in the United States to $1,849 in May – a nearly 16% increase from the prior year. A supply/demand discrepancy can be blamed for the record-breaking 15 month-in-a-row increase.
The average monthly rent in Manhattan surpassed $5,000, with people renting rather than buying because of the increasing mortgage rates. Now with the start of school right around the corner, college students and recent grads are struggling to afford to rent an apartment with only 35% of college students able to rent an apartment in their college town.
Rising rents are just one piece of the puzzle. Moving into a new apartment is getting to be quite expensive as well. Besides the first month’s rent, most rental agreements require a security deposit, on average equal to one month’s rent. This can be a significant financial burden for most renters regardless of whether it’s their first apartment after college or a move for a growing family.
As rent continues to climb, there is an incredibly significant demand for a solution to this growing problem. Splitit has partnered with letus (formerly RentMoola) to bring our Installments-as-a-Service to its cloud payment platform for the property rental market. Together we are providing a way for renters to spread the cost of their security deposit and rent over time without creating new debt.
letus is one of the largest payment platforms in the property rental market – a $229 billion market in the U.S. alone. Together we are able to reach thousands of landlords through a single technical integration and deliver a much-needed tool for renters to manage the costs of their new apartment.
Unlike legacy buy now, pay later (BNPL) providers, instead of originating new loans, Splitit unlocks existing consumer credit on credit cards. Because any credit card is automatically pre-qualified to use Splitit, there’s no application, additional interest or hidden fees and no changes to their credit report making it a simple solution for renters and property managers alike.
The ability for Splitit to branch out into new markets is a testament to the strength and flexibility of our platform. Our white-label BNPL platform’s single global API makes Splitit’s Installment-as-a-Service the easiest pay-later option to adopt, integrate and operate.
Whether a retailer or a service provider, Splitit provides a flexible platform with the ability to support higher ticket purchases and can offer installment plans over longer time periods (up to 24 months), versus the limitations of a pay-in-four.
We are excited to see our partnership with letus thrive and look forward to opening the door in other exciting industries. If you are interested in learning more about Splitit or to become a partner, let us know. We’re always happy to see how Splitit can help your business grow.
