Brazil’s QuintoAndar launches ‘Rent Without Administration’ contract

On Wednesday, August 31, QuintoAndar, a platform for renting, buying, and selling properties, announced the contracting modality ‘rent without administration’.

This way, the property owner signs a contract directly with the tenant without intermediation. The model’s objective, which excludes the monthly administration fee, is to contemplate a new client profile.

In an interview with Exame Invest, Caio Oliveira, Director of Rental Product, explained that the new product meets a demand from the Brazilian market.

“We decided to expand our business model to meet a segment of people who prefer to have a rental without the administration of third parties. Some owners, for example, who live in the same building and prefer direct contact with the tenant or owners who have many properties and already have a structure to do this property management.”

Only in the first ten days of the new product’s test period, QuintoAndar had a 7% increase in new properties within the “rent without management” modality.

The owner can choose the type of contract at the time of publication of the property, and the information will be visible to the tenant on the details page, along with other property characteristics.

He will advertise on QuintoAndar and use it as a platform for disclosure at no cost, with the same exposure as the properties managed by the company.

“After that, the process is the same. They get a professional photographer to take the photos for the ad. The owner of the property receives information that helps to make the property more liquid, that is, to work with them on the pricing of the property, the visiting conditions,” adds the executive.

In addition, the owner and tenant have online scheduling of visits, entry inspection, and signature of the digital contract.

In the “rent without administration” contract, the tenant needs to hire a “simple guarantee” from QuintoAndar as a rental guarantee, whose value varies according to the tenant’s credit profile and property characteristics.

The brokerage fee, in turn, follows the same model of the contract managed by QuintoAndar and is paid by the owner when the first rent is charged.

QuintoAndar is responsible for managing the contract, which involves making collections from the tenant, exit inspections, or handling any repair requests, for example.

This modality also includes unique benefits in the market, such as the rental guarantee assumed by QuintoAndar with payment of the rent on time even if the tenant is late; and the QuintoAndar Protection, which covers eventual damages to the property caused by the tenant up to R$50,000 (US$9,763).

With information from Exame