Landlord Helps Tenants Cope With Rent Hikes

Multifamily investor and owner/operator Gelt has launched a new online platform to help apartment tenants manage payments. Domuso, as the platform is called, allow tenants to either finance monthly payments or send a certified payment without the hassle of going to the bank. The platform has raised $3.1 million from other real estate vets, and already has a roster of high-profile owners and operators as users.

“We saw a real problem with the rental payments on our properties. It was very fragmented and there were not a lot of options for the residents to manage their residents, and operators weren't given tools to help deliver financial options. You know, rent is due on the first and late on the third with a huge late fee, and by the fifth there is an eviction notice on your door,” Damian Langere, CEO of Gelt, tells GlobeSt.com. “I believe that we can do better than that as an industry. We can deliver modern financial technology that is built for the rental payment, where we are delivering financial options for the residents.”

Domuso offers two payment options to users, either online certified payments or payment financing plans that are meant to help tenants with limited on-hand cash to make the payment. “Tenants today have a stringent date in terms of the type of payment and the date of that payment,” says Langere. “Landlords require a certified payment when you move in, and the only way to do that is to get a certified check from the bank. Domuso has an online certified payment that allows tenants to deliver an ACH banking payment certified to the owner/operator. Essentially, the resident will have a new payment method to choose from on their online payment portal check out and make that payment all online. The second product that we offer is a point of sale installment product, which allows the resident to finance the payment, if they like. They don't have to. It is an option that they have. We are really looking at the payment of rent a little differently and building some financial solutions and flexibility.”

The goal is not to help decrease evictions, but rather to provide financing solutions, says Langere, who started the program after seeing the extreme increases in apartment rents in Los Angeles. “The goal is to offer flexibility. If people have an intention of paying their rent and are getting an eviction notice, that is different than someone that has no intention of paying their rent,” he adds. “We want to deliver to rents options if they have a tight month, and now they can mange their cash a little bit better.

The major benefit is for the tenant, but Langere says that landlords also benefit because “they are getting what they need: a certified payment.” The interest from landlords, however, shows that landlords see the benefit. David Kim of Bascom Group and Moss & Company are among the users of Domuso. “We have a few owner/operators that have invested into Domuso, because they see the value,” says Langere. “Myself, as an owner/operator, I see that people want financial options.”