August 30, 2024: RentenPe is introducing a Rent Credit Score and Residence Card (R-Card), developed with insights from market research conducted by Ernst & Young. This new platform is designed to acknowledge tenants who consistently pay their rent on time.
In India, nearly 50% of the population is under the age of 40, with many young professionals relocating from smaller towns to major cities. These individuals often allocate a significant portion of their income—up to 30%—towards rent while aspiring to own a home. Despite the importance of these payments, rent has traditionally not been factored into credit assessments, unlike credit card payments or loan EMIs.
The Rent Credit Score, created for the residential rental market, uses an advanced algorithm that takes into account various financial, qualitative, and quantitative factors. This score allows tenants to build a credit profile based on their rental history, potentially leading to better rental agreements, rent loans, pre-approved home loans, and savings on rent.
The R-Card, complementing the Rent Credit Score, serves as a digital rental identity, offering tenants benefits such as better rental deals, quicker approval processes, and possible rent discounts. Landlords, in turn, gain access to verified tenant profiles and early rent facilities.
Sarika Shetty, founder of RentenPe, said, “We believe that rent, a significant monthly financial commitment, should be recognised in the same way that EMIs and credit card payments are. Our Rent Credit Score and R-Card are designed to empower tenants, giving them the financial recognition they deserve and helping them achieve their long-term goals, including homeownership.”
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