Proptech

Choosing a home to live or build a family is always a huge decision. To those awash with cash, their taste or, should we say, lifestyle is a primary consideration. To most of us, however, financial health is always the main issue.

To some financially healthy, ownership is an investment, it builds their equity. More importantly, ownership, they say, brings about intangible benefits. It is a status symbol, especially when it is inside a posh subdivision. It affords them some bragging rights, it seems.  Of course, that feeling of stability or security also comes with it as nobody can kick them out of their abode. Well, if it is mortgage-free. 

On the other hand, while renting comes as the only option to those who can ill-afford to own one, it has its own benefits too. That is why even those who are financially sound are opting to rent than own. To them, renting offers them flexibility. Meaning, if they don’t like the place, they can simply find another one. Moreover, unlike ownership, expenses are more predictable.  We experience that lately in Cebu. As typhoon Odette wreaked havoc, renters were not saddled with huge repair expenses.

Undeniably though, since time immemorial, we’ve been told that ownership is still better than renting. That is the reason why the first thing an OFW does when he is able to earn enough, he builds his own house. However, we have to keep in mind that renting doesn’t mean you are wasting your money and that owning will always build your wealth in the future. 

To the more advanced countries, with property technology (or proptech) startups now sprouting, deciding on whether to buy or rent shouldn’t be difficult anymore. Proptech, by the way, is defined “as the usage of technology and software to assist in today’s real estate needs.”  This is so prevalent presently in the office sector in the USA and UK. To owners and possible users of office spaces, “this could mean everything from digitally facilitating unique workplace experiences, to offering advanced data and analytics capabilities for real-time feedback, to even helping them purchase, sell, and manage their assets.” Plainly, proptech’s main goal is “to make everything about owning, leasing, or working in a building unique, easier, and more efficient.”  Simply put, it also means that “it’s not just for those who own and manage real estate, but the people who lease and work inside the buildings.” The key takeaway is that, even if you are just leasing a few square feet, you will surely have incomparable experiences in such workplace. 

To those wanting to just rent a home, a UK-based proptech startup is answering such call.  Flarfair, “aims to become the first digital tenancy mediator whose mission is to ease the pain of tenancy or rental deposit.”  Its “innovative rental solutions mean that tenants can secure a new home with a small check-in fee instead of paying for a costly deposit, whilst giving landlords up to double the protection of traditional deposits.” In this scheme, Flatfair is just right at the middle, assuring the owners that the tenants can pay whatever are supposed to be paid once they gave up the leased property. In moving in (tenants) right away, the owner doesn’t have to wait for months to earn something from his property. Indeed, a “win-win” situation.  

Also, to make the lives of owners and renters a lot easier, Oliver Space, a California, USA-based start-up is leveraging technology to give buyers convenience and flexibility in owning furniture. Using its platform, customers can find curated furniture (sourced direct from the manufacturer) that they can rent on a monthly basis with flexible ownership options.  Then, they can use “Room Builder” to view pieces together or start a live chat with Oliver Space for room ideas. Then, they choose between short-term, long-term or upfront plans, all with no interest. Then, they can pick a white-glove delivery date for as soon as three days in advance.  Once they have the items and see how they work in their space, they can swap them, schedule a pickup or keep the favorites. More importantly, all payments go toward ownership. In simple terms, it is rent-to-own.

These startups’ business models are not difficult to replicate. One thing that we must not miss is the fact that condominiums, subdivisions and office buildings are also sprouting in our midst. Don’t you think these property owners and their potential customers need good platforms to visit when they decide to buy or rent? They do.