Fintech startup Traity has partnered with landlord insurance specialist Terri Scheer Insurance to launch Trustbond.
Through Trustbond, tenants can pay a comparatively smaller fee upfront to cover the protection their landlord requires, rather than locking their savings into a traditional rental bond.
So how much does it cost? The Trustbond website says for a rental bond of $1500 the fee would start from $190.
The fee is calculated considering your ‘TrustScore’ – a measure of trustworthiness using online data including networks, ratings and reviews from Facebook, Twitter, LinkedIn, Airbnb, eBay and Uber, reports Property Observer.
If you renew your lease your Trustbond renewal is half the original fee and third and subsequent renewals are free.
Landlords have 90 days after your lease ends to make a claim for damage or unpaid rent. Payments of claims take a matter of days, according to Trustbond and there’s no need to go to a tribunal.
But Trustbond believes the ability for landlords to rate and review tenants like an Airbnb or Uber rating will provide an incentive for tenants to leave the property in good condition.
So what’s the catch?
Unlike a bond, the TrustBond fee isn’t refundable. Also, Trustbond is currently only available in South Australia. But they plan to roll it out in other states.