US real estate

Jetty makes sure you never pay a rent check again


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A New York-based fintech startup aims to solve a common anxiety that landlords and tenants often experience on the first of every month: paying rent. Landlords wonder if they will receive it and renters wonder if they can afford it. Jetty offers a solution.

What’s the scoop?

Jetty recently raised $ 23 million in a funding round co-led by Citi and Flourish Ventures, which represents $ 78 million of the total funding raised by Jetty since its founding in 2016. Other investors who participated in this round are CreditEase and K5 Ventures.

What is Jetty doing

Jetty uses the “buy now, pay later” (BNPL) model, an alternative to credit cards. BNPL acts like a point-of-sale loan where buyers – or in this case, tenants – pay for their purchase in installments. BNPL is a $ 100 billion industry.

Renters who sign up with Jetty pay the company a monthly subscription fee that ranges between $ 15 and $ 25 per month, depending on the renter’s credit profile. What clients get for their money are guaranteed on-time rent payments every month.

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Jetty pays the client’s rent to the landlord or property manager, and clients have until the 24th of the month to repay it, either in one go or in installments. If the tenant chooses Jetty by default, he will not be able to borrow for the following month.

At first, Jetty only offered her service to residents of Cortland properties. It now also works with AMLI Residential and is available to the public, while providing insurance to tenants (also making Jetty an insurance company) and replacement of security deposits. It offers its loan service through Cross River Bank.

Why tenants do this

Landlords generally do not accept installment rents. Therefore, if the tenant does not pay in full, usually on the first of the month, they face late fees and possibly eviction. The amount of late fees depends on the lease and sometimes state law. But it’s safe to say that the late fees are usually higher than what Jetty charges her customers each month.

Even if the landlord doesn’t charge a late fee, a tenant who usually pays their rent late may not be asked to renew when the lease renews, and tenants generally understand this.

Millionacres net profit

Jetty provides a service that benefits both landlords and tenants. It is not the only company of its kind. Flex, for example, does the same. Flourish’s Emmalyn Shaw says that over 70% of Americans live paycheck to paycheck, and that’s Jetty’s market. According to the National Multifamily Housing Council, 72% of apartment households paid rent on September 6 this year, compared to 94% who paid in August. These numbers also illustrate that there is a market for people who need help paying their rent on time.

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