If you’ve ever secured a rented apartment in Lagos, you’ll agree that it can be a long, painful and intricate process.
This is true, especially with the bureaucratic way in which Landlords demand for exorbitant rental fees for one or two-year periods, coupled with the associated agreement/agency fees which are usually demanded from some of the Landlords, even though they are letting their property without the help of real.
For years, tenants in Nigeria have been unable to access affordable housing with flexible payment options as it is done in developed countries where monthly payments are accepted for apartment rentals.
That’s why RentSmallSmall.com is launching first in Lagos, before expanding to other cities, in order to eliminate the complexities that are associated with finding suitable, affordable apartments in Nigeria.
“Our business model works in a way that landlord gives us the base rent of the property on annual basis and then we mark it up by a certain little percentage and with that mark up, we break it down into monthly payment. The landlord gets 92% of the rent while we take 8 percent,” says Tunde Balogun, CEO & Co-Founder, RentSmallSmall.
Apart from offering an affordable and flexible payment option for as low as N50,000 per month (say for a N600,000 per annum apartment rental fee), the model provides tenants with insurance coverage which protects their contract with the landlord in case of their inability to pay rent as at when due, perhaps because of job loss, critical illness or accident.
For now, the platform features only a handful of properties for rent in the Eti-Osa and Lekki peninsula areas of Lagos State.
The startup is currently working with selected agents such as Estate Link, Nedcomoaks and Rydal News Ltd, and has also partnered with Furnisure Nigeria to provide ‘’Rent to own’’ appliances and furnitures for tenants to acquire furniture and appliances of their choice and make flexible payments.
Balogun, who graduated from Stanford University with a degree in Business Administration, said that the platform was borne out of a need to disrupt the market which has offered an impractical and inflexible model for renting apartments in the country.
He believes that in the coming months, the RSS model would be replicated in other states in the country as well as other African countries that currently do not operate this scheme.