Matt’s story from a friend highlighted a similar issue, for a long term rental deposit. Matt was on the phone with a friend who lives in Aspen, Colorado. His friend was in a difficult situation with a rental home security deposit that was not being repaid to him. It had been over a month since Matt’s friend had moved out of a rental home where had paid the owner a $3,000 security deposit and a $500 pet deposit. Now that the lease was over, Matt’s friend and his family had moved out, leaving the home in excellent condition. The problem was the owner had spent the $3,500 and did not have the money to refund the deposit. Matt’s friend was stuck. He could take the owner – who was also a family friend – to small claims court, but the owner simply didn’t have the money, because he had failed to deposit it in a secure, separate account as he should have. Poor accounting and money management cost Matt’s friend $3,500 and put his friendship with the owner at risk. The home eventually went into foreclosure and still, to this day, Matt’s friend has not received his deposit.
Alan and Matt kept coming across the same dilemma, especially in the vacation rental market – people were anxious about sending money for a rental they had never seen to someone they didn’t know, normally many months in advance. Alan and Matt called this Reservation Hesitation and set out to create a solution that would ensure the renter felt safe when making advance rental payments. When you provide peace of mind for the traveler, they will choose to book vacation rental properties more often. That directly and positively impacts the homeowners and agents that work hard to provide great vacation rentals. It is a win-win solution for everyone.
Alan and Matt did a lot of research and commissioned several market research studies that all showed there were no existing solutions to develop trust and offer transparency in the rental transaction. Instead, they found reports of scams, foreclosures and fraud – and many reasons that would make renters nervous about choosing a vacation home rather than a name brand hotel.
To resolve this feeling of Rental And Reservation Hesitation, they made sure to build a service that is easy to use and extremely safe offering both parties to get what they are after.
They created Renthome Insurance–a neutral, third party service that provides a secure way to handle property viewing, keys exchange, payments and refunds, the entire flow between renters and homeowners or agents.