"Actually, the issues that arise during the rental process need to be addressed as a whole, considering the entire process from start to finish. This requires continuously learning from experience and adapting to changes in the market," explains Alain Aun, CEO of the secure rental platform Rendin.
A rental agreement alone doesn’t protect you
Aun expands the idea of dealing with the holistic problem further. “People often have the misconception that they just need to get one thing right to secure their rental relationship. The rental agreement is a good example. People often think the agreement will protect them should anything happen,” he says.
“That isn’t wrong - a rental agreement is an important part of the package that guarantees the safety of the parties should something happen. However, the answer to guaranteeing a secure and painless renting experience is a bit more complex. And there are many steps along the way that can go wrong.”
According to Aun, for the system to work effectively, every step involved in the rental process must be well thought out and properly executed. In other words, in addition to the rental agreement, attention must also be given to the tenant background check, the handover of the property, the payment process, and much more.
“Let’s once again take the example of the rental agreement. If something happens the agreement will just say what terms you agreed to with the other party. It says nothing about the state of the property at the moment of giving it out for rent or the possible damages or doesn’t give you an actual next step on how to solve any problems,” he says.
The handover protocol helps resolve disputes
In Aun's view, not preparing a handover protocol is one of the biggest mistakes made during the rental process. "In practice, we often see that even if the handover protocol is created, it is filled out with very incomplete information (lacking pictures and descriptions) or using promotional photos taken by the real estate agent. Landlords often rely on their memory and believe they will remember exactly what the rental property looked like when the tenant moved in. In reality, that’s not the case," he adds.
"Our legal team recently dealt with a similar case where the landlord found defects in the rental property after the lease ended and demanded compensation from the tenant. By comparing the photos from the handover and termination reports, we discovered that the damage had already been there before the tenant moved in, making the landlord’s claim unfounded," he explains.
"This is precisely why it is crucial to document the condition of the rental property as thoroughly as possible when moving in and out. Otherwise, it becomes nearly impossible to determine whether the defects were caused by the tenant’s actions and who is responsible. In such cases, the tenant may face baseless accusations, or the landlord may miss out on rightful compensation," Aun emphasizes.
Read more: how to correctly execute the handover act?
An example of a common handover protocol that does not contain enough information.
Learn once and help others
"Today, tens of thousands of landlords and tenants have joined the Rendin platform. This allows us to quickly adapt to the complex challenges of the rental market and continuously learn how to solve them over time," says Aun. He points out that both the refugee crisis triggered by Russia’s invasion of Ukraine and the COVID pandemic were good examples of how their quick adaptability and risk management helped platform users.
“In 2022 when the war started, many people wanted to accommodate Ukrainian refugees. However, the situation at the market was hazy at best. Nobody knew what legal status these people had, what kind of formalities needed to be done so that they could live in the properties etc. Every single landlord on the market had to learn these things alone," he explains.
"The Rendin community had to learn it once and we could advise every one of our landlords who wanted to do this based on this knowledge. Moreover, we could even advise the Ukrainian tenants on how they should proceed, what kind of documents they should acquire, where they should turn to and so on,” Aun says.
It is necessary to adapt to changes in the rental market
Although the previous example was extreme, Aun notes that they actually gain similar smaller lessons every week, if not daily. "This is indicated by people's rental behavior—what they are looking for, the questions they ask us, and their biggest concerns. We share this information with our landlords and advise them on how to adapt to changes in the rental market," the Rendin CEO clarifies.
Aun also highlights that this learning has been particularly valuable when it comes to different types of rental agreements. "Rendin launched just two days after a state of emergency was declared due to the COVID pandemic. At that time, we saw many requests for early termination of fixed-term contracts, coming from both landlords and tenants. As a result, we made the decision to modify the rental agreements offered by Rendin. We realized that a termless rental agreement allows for quicker responses to changing situations," he explains.
Every landlord needs protection that helps
The rental expert notes that landlords often underestimate the importance of small details and assume they won’t face any issues during the rental process. "For example, many find drafting a handover protocol or conducting a tenant background check tedious and unnecessary at first. We also see landlords turning a blind eye when they discover, through our background checks, that a candidate has payment issues," says Aun.
"In such cases, landlords might bypass the Rendin platform and sign a contract independently, asking the tenant for two or three months' worth of security deposit to feel more secure. Unfortunately, many of these rental relationships end in significant financial losses for the landlord—losses that could have been easily prevented," Aun explains, adding that the background check requirement at Rendin exists for a reason.
Secure rental agreement from Rendin
According to Aun, a detailed handover protocol, a proper rental agreement, and a thorough tenant background check can prevent many issues. All of these tools are provided by the Rendin platform. "Landlords don’t have to figure out how to draft rental documents themselves or worry about whether they are properly and legally formatted. Rendin users can use document templates prepared by our legal team, and they only need to fill in the required fields," the rental expert explains.
"What makes Rendin’s service special is that we take responsibility for our promises, and this is something our landlords value the most. Today, many companies promise a secure and worry-free rental experience. However, Rendin is the only one that compensates landlords for debts or damages in case of problems and not only pays out money but also actively helps resolve the issues. Our goal is to offer our clients a comprehensive solution that includes everything—from legally sound documents to giving advice to the parties and mediation," Aun explains.
