Pioneer of Security Deposit Insurance also launching Credit+, a Free Credit Reporting Service
NEW YORK, Nov. 16, 2022 /PRNewswire/ -- Rhino, which pioneered security deposit insurance in 2017 and today services a six million home partner network, has entered into a definitive agreement to acquire the technology and assets of Deposify, a portfolio company of Sunriver Ventures, a cash deposit collection and compliance company for landlords and property managers across the U.S. A combined offering, set to launch imminently after the transaction closes this year, will bring to market the first end-to-end deposit management and compliance platform to service more than $45 billion in cash deposits and security deposit insurance for 43 million rental homes nationwide across the entire rental industry.
Increasing trust and transparency between renters and landlords has always been a core part of Rhino's vision. To further advance this mission, Rhino is also launching Credit+, which will provide renters at partner communities with a means to build credit through on-time rent reporting. On the heels of a recent TransUnion report that found over 45 million U.S. consumers unserved or underserved, with little to no credit history, Rhino's new service will be available exclusively to renters through partners that use Rhino's end-to-end deposit management platform, and will be free of charge to renters and property managers.
"Today's announcement is a direct response to hundreds of conversations with renters frustrated by waiting for deposit refunds and landlords and property managers struggling with time-consuming operations, looking for more cost-effective ways to handle cash," said Paraag Sarva, Rhino Co-Founder and CEO. "While renters and landlords alike are enthusiastic about our work to introduce a new way to secure a home with Rhino's deposit insurance product, the reality is cash deposits will continue to be used for some portion of transactions, and we're in a unique position to solve those challenges. We're going to give renters a world-class, technology-first experience regardless of how they choose to move-in: with deposit insurance or with a cash deposit."
In just five years, Rhino's innovation and leadership saved renters over $1 billion in upfront move-in costs and helped drive down operational costs for over 2,500 landlords and property managers nationwide, a network managing six million rental homes and over 14% of the U.S. rental market. There is growing demand from landlords and property managers to further reduce the friction and challenge of cash security deposits.
"We founded Deposify with a goal of bringing cash deposit collections, refunds, and compliance out of the stone age," said Jon Bayle, Founder and CEO of Deposify. "With our platform, cash deposits can be paid instantly and refunded instantly, dramatically improving the customer experience for renters and reducing operating and compliance costs for landlords and property managers. I'm excited to partner with Paraag and the Rhino team on the next chapter of our journey together as we double-down and expand our reach and vision with the incredible momentum they have."
"Securing rental housing continues to be an archaic, cumbersome process, where the costs of unnecessary inefficiencies are ultimately borne by millions of low- and moderate-income renter households," said Jordan Moss, Founder of Catalyst Housing Group, a mission-driven housing provider addressing wealth and income gaps with pioneering capital solutions. "I applaud Rhino for taking a leadership position in the multifamily industry, and continually pursuing technology-driven innovations that uplift both renters and owners. Catalyst is excited to pursue future partnership opportunities with Rhino as they tackle the management and compliance of cash deposits, and other antiquated business lines."
"New York has challenging building management regulations," said Joe Strasburg, President of the Rent Stabilization Association, America's largest regional housing owner's association. "It's incredibly difficult for our 25,000 diverse members to keep up with always changing statutes and demands. We've proudly endorsed Rhino's deposit insurance program for years now and are enthusiastic to see them continuing to leverage technology to make building management more efficient for owners and tenants alike."
Both small property owners and the largest enterprise operators in America want to provide strong customer service and a tech-enabled experience more easily and efficiently. Inflation and a potential recession are creating challenges for the 110 million renters in America, as well as property managers and businesses of all sizes. By launching the industry's first end-to-end deposit platform servicing all stakeholders in the rental ecosystem, Rhino is aggressively responding to the most pressing needs of renters and landlords alike.
Rhino was founded to give renters everywhere greater financial freedom to plan and enjoy their lives. In 2017, Rhino pioneered security deposit insurance, replacing cash deposits with smart, affordable insurance so renters can maintain control of their cash. Instead of a large upfront cash security deposit, renters pay Rhino a small fee, and Rhino insures the property owner for damages that might occur and lost rent. In addition, Rhino today also offers Renters Insurance, giving renters a simple and affordable way to purchase contents and liability insurance which is often also required by landlords at move-in. As of 2022, we are offered in over two million homes with a six million home partner network, and we have saved renters over $1 billion in cash.
Deposify was founded in Ireland in 2014 by Jon Bayle and Dave Brennan and has U.S. offices in Boston and New York. Its primary product is a cash security deposit management technology platform which is utilized by property managers across the U.S. Deposify is a portfolio company of Sunriver Ventures, a Dallas-based investment firm providing structured debt and equity capital to companies that bring technology to traditional industries like real estate, construction, and insurance.