Zumper, a residential rental marketplace, has introduced a premium feature for small landlord-advertisers that compensates them when tenants miss rent payments.
The rent-guarantee product, rolled out amidst the economic uncertainty of Covid-19, covers missed rents for up to 12 months, subject to certain conditions.
Zumper is branding it as a premium feature of Instarent, the company’s free leasing product. Instarent lets landlords conduct a variety of transactions with tenants and prospective tenants online, including tour bookings, background checks, the signing of lease agreements, and rent collection. The rent guarantee feature will be available for a fee equal to 2% of the property’s monthly rent.
“With more than 80% of landlords experiencing missed rent, and only 63% of them ever getting reimbursed, the need for a fully digital leasing solution with payment support is needed now more than ever,” Zumper said in a news release. “Zumper’s Rent Guarantee is the latest and most timely feature in Zumper’s Instarent proposition.”
The product is targeted at small landlords, which the company describes as owning between one and 10 rental units. Zumper says there are eight million such landlords in the U.S., owning half the nation’s rental stock.
With about 11 million monthly visits in July, Zumper’s traffic is far below Zillow, the top real estate site in the U.S. Last month, Zillow had 297 million visits. The leading rental specialist in the U.S., Apartments.com, had 45 million visits last month.
Zumper, founded in 2012 and based in San Francisco, calls itself the largest privately-held rental marketplace in the country. It has 200 employees and has raised a total of $140 million in funding.