A new mobile app that pays landlords rent upfront for up to a year aims to revolutionise renting relationships.

Using Wectory, tenants still pay monthly, but landlords can choose to receive rent for six, 10 or even 12 months in advance.

After they sign up, landlords send an invite to their tenants who make rental payments via the app – on a monthly basis – but they get the funds paid directly to their account for a 12% fee.

CEO Mikhail Balabanov says one-touch payment and automatic recurrent payments means tenants won’t forget to pay rent on time.

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Low on funds

Wectory also plans to roll out a feature offering renters short-term help if they’re running low on funds, where it can step in and cover paying the rent for a week or two, charging £50 for the first week and £100 for the second.

Balabanov hopes to emulate the huge success of Klarna – the buy now and pay later style of digital payment for online shopping, he tells LandlordZONE.

“The app will help eliminate so many of the tensions that can come to exist between landlords and tenants.

“By getting a lump sum, landlords might want to make renovations to another property and, as we aim to eventually extend the offer to 24 months’ rent in advance, that could even be the first payment on a mortgage.”

Wectory will have a soft launch in early November, starting with residential landlords, with plans to expand into the commercial sector.

Find out more.

6 COMMENTS

  1. I can understand the financial model that is being used to launch this business, it aims at those landlords who want to have access to money in advance of rental payment and tenants who need short term loans to bridge rent shortfalls. Maybe a good model but will be aimed at those on the margins. Will see how it develops with interest.

  2. 12% interest for advance payments. Well get a loan. It’s cheaper.

    It still does not resolve the issue of evictions.
    It is time for 24 hour evictions. Miss your rent and you are out in 24 hours. This is fair.
    A landlord is not a charity. If the government wants to extend time, they should pay rent and damage.

    Hi, Tesco I cannot afford the food. I will walk in take what I want and then let me do this every say. You cannot prosecute me for 2 months.

    • I would suggest the Australian eviction system is the most effective one.

      LL have the option to remove rent defaulting tenants 14 days after 1st rent defaulting tenants assisted by Police if tenants refuse to vacate.

      Now just because Oz LL can evict after 14 days doesn’t mean to say they would.

      But tenants knowing this could occur wonderfully concentrates the mind of rent defaulting tenants.

      Many tenants will do whatever it takes to pay the rent precisely because they know they face a pretty quick eviction if they don’t.

      But LL are better able to manage things.
      Rarely would an Oz LL evict in 14 days.

      They will mostly try to work with the rent defaulting tenant.

      It is usually far easier to have a rent defaulting tenant endeavour to come up with a resolution to their rent defaulting than be evicted.

      But the mere threat of early eviction will motivate the tenant to resolve things.

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