Let me start with two personal experience .
I had newly moved to Bangalore in 2017 , so i thought of renting an apartment with my office colleagues. We searched online but got most of the listings from the agents. The deal was we have to pay the agent some amount so that he will help us finding prospective properties . On the weekend we paid the agent and started the hunt . We went to three different properties but we didn’t like it. So we thought of continuing on the next day. On the next day morning we tried to call the agent again but now we are scammed , he never received the call.
After lot of difficulties we found an apartment as we were bachelors it was really hard to find. The apartment was comfortable but it needed some fixes like switchboard , washroom tap and few paint jobs. The owner asked us to pay some advance so that he can finalise the deal and make the repairs. As we liked the house we paid around one month of rent as an advance. we promised him to pay the another month of the rent as security deposit on the day of move in.
We paid the owner security deposit and Finally moved into our new flat. But the repairs are still not done , even we found out more issues in that flat. We called our owner we reported right away. He promised us that he will fix those as soon as possible but that day never came. The days passed we fixed those issues with and asked the owner to make the rental agreement at least. Oh fish , three months passed but the rental agreement never happened. Due to all these issues there was always clash between us. One fine day , suddenly he asked us to move out forcibly and didn’t even returned the security deposit.
I know many readers can relate to my stories. Someone really said
“Necessity is mother of invention.”
We have came upon a really good idea which can solve this particular problem. We can use escrow for property rental to avoid those kind of scam.
What is Escrow ?
In Layman’s term tenant deposits the cash to a trusted third party Plomor , when the owner delivers the house as per the expectation and with paper work the amount will be transferred to the owner. To know more about escrow you can click on this link.
lets see how we could have saved our money using escrow.
We could have deposited the agent fees to neutral third party Plomor . When the agent would have found a house of our choice ,then we could have released the payment. In this way both the tenant and agent would have been saved from fraud.
In the same way we could have deposited the advance money to the neutral third party Plomor. When the owner would have completed all the repairs and paper work , we could have released the advance money. In this system owner is safe because there is no fear of payment delay or negotiation or repairing cost after tenant moved in.
How Plomor helps in property rental ?
Plomor is totally made in India , escrow management service. The escrow charges are really less which is only 2% ,lowest in industry. You can get free escrow per request when seller refers buyer to the website.
1.Creating a request and inviting the owner
Fill the request form and submit. Posting a request is absolutely free in Plomor. Invite your owner to the request. Don’t forget to mention all the terms and condition before moving into the house while posting a request.
2. Making a proposal
Owner prepares a quote and bid on the request. Tenant accepts the bid .
3. Creating milestone
After the request is accepted, owner creates milestones
ex : Let total advance is given Rs. 10,000. Owner creates two milestone
- Milestone 1 : House repair Rs. 5000
- Milestone 2 : Ownership transfer – Rs. 5000
After milestones are created ,tenant pays the money which is going to be stored in Plomor. And the owner gets the notification of payment
4.Delivering the house
Owner delivers the house as per the condition ,both were agreed before .
5. Tenant releases the money
Tenant gets a window period to verifies the property and asks Plomor to release the fund.
6. Owner gets rating and review
Rating and review are a great way to get more customers and reputation. Always ask your tenant to give you reviews .
Plomor will be really helpful renting commercial property . Agents can find lot of potential customer as this is a marketplace . They can grow their business with good reviews and ratings.