Gurugram-based integrated real estate startup Square Yards introduced a ‘Zero Deposit Program’ for property renters through its subsidiary Azuro, which provides rental and property management services.
According to the official statement, the zero deposit program entails a residential rental bond, which will act as the guarantee for the landlord. It will be used to compensate the landlords in case the tenant defaults on his obligations under the tenancy agreement.
The startup believes the program will provide relief to home-seeking tenants from paying huge security deposits.
Tanuj Shori, Founder and CEO, Square Yards, said:
“For too long, large deposits have been a burden for the home finders. With our new innovative product, tenants now don’t need to cough up deposits and can seamlessly move into professionally managed homes without taking personal loans and withdrawing their savings.”
“Through this disruption, we are looking at a future where deposits will become a thing of the past. We aim to close 10,000+ rental transactions through this program by the end of next year,” he added.
According to the startup, the program will also institutionalise the renting business in India and help landlords with credit-verified tenants backed by an institutional guarantee from Azuro.
Founded in 2014 by Tanuj Shori and Kanika Gupta Shori, Square Yards is a proptech brokerage and mortgage marketplace. It recently announced its Q1 FY22 results, clocking Rs 100.8 crore revenue. Its gross transaction value (GTV) stood at Rs 2,197 crore, up 80 percent year-on-year.
Last month, Square Yards raised $25 million in a growth financing round from ADM Capital.
“With the Model Tenancy Act, approved by the Union Cabinet, set to overhaul, the legal rental housing framework and create a vibrant, sustainable, and inclusive rental housing market in India, the launch of Square Yards’ Zero Deposit Program will provide a sound fillip to the landmark Act by solving the discord in landlord and tenant equation and plugging the housing deficit, at a time when about 11.09 million homes are lying vacant in urban areas,” the official statement noted.