Startup, Rentlender Revolutionizes the Rental Market, Offering Finance Options for Renters

News provided by

Mar 06, 2018, 07:00 ET

NEW YORK, March 6, 2018 /PRNewswire/ -- According to a Harvard University housing report^¹, over 110 million Americans, or about 36 percent of households, now live in rental units — an increase of 9 million renters over the past decade — the largest 10-year gain on record.

Unfortunately, other records are being smashed too: the number of cost-burdened renters — that is, households paying more than 30% of their income on housing — jumped to 21.3 million. And a record 11.4 million Americans are spending more than half their income on rent. The news is even worse for New Yorkers, who last year spent 65.2%, or two-thirds of their total income, on rent^².

With upfront rental deposits and fees at move-in costing over $3,000 (more if you live in New York City, where comparable costs typically top $20,000); there has never been a greater need for finance options for renters.

Beginning today, New York City-based startup Rentlender is partnering with Upstart to provide modern financing solutions for renters.

Renters must meet a minimum set of requirements to qualify for a loan including having a minimum credit score of 620 and a maximum debt-to-income ratio of 45%. All loans are originated by Cross River Bank, an FDIC insured New Jersey state chartered commercial bank, and lending terms and fees are as follows:

Loan amounts: $1,000 to $50,000^³
Loan duration: 3 or 5 years
Annual percentage rate: 7.436.25% to 29.99%^⁴
Origination fee: 0% - 8% of loan amount
No prepayment fee

Renters can use these loans to ease the burden of renting in a number of ways:

Upfront costs - Pay first month, last month, security deposit and broker fees
Individual Months of Rent - Finance one or two months rent
A Full Year's Rent - Finance a full year's rent in addition to up-front costs

The loan application process is Powered by Upstart and provides renters with a fast, easy and paperless application process:

Check Your Rate - With a quick form, renters can see the loan options for which they qualify.
Submit an Application - Complete the application online and indicate the bank account where funds should be sent.
Accept Your Loan - Upon approval, log in and digitally sign loan documents. Funds can be available as quickly as the next business day.

ABOUT RENTLENDER
Rentlender uses technology to provide financial flexibility for renters by enabling them to finance their rental expenses and pay them back in smaller installments over time. The company was established in 2017 by Richard Passer.

¹^{http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/son_2016_200dpi_ch1.pdf}
²^{http://ny.curbed.com/2016/4/21/11477788/this-year-new-yorkers-will-spend-two-thirds-of-their-income-on-rent}
^{3 Loan amount will be determined based on applicant's credit, income, and certain other information provided in the loan application. Not all applicants will qualify for the full amount. The minimum loan amount is $3,100 for borrowers in Georgia, $6,000 for borrowers in Ohio and $7,000 for borrowers in Massachusetts.
4 The average 3-year loan on Upstart will have an APR of 16% and 36 monthly payments of $34 per $1,000 borrowed. There is no down payment and no prepayment penalty. The average APR on Upstart is calculated based on 3-year rates offered in the last 1 month. APR will be determined based on applicant's credit, income, and certain other information provided in the loan application. Not all applicants will be approved.}