Rental-based financial services company Jetty has launched a new program, Jetty Rent, which will give more flexibility with late fees, according to a press release.
The service will take away the cost burden and give renters flexibility on when they pay rent.
Now, Jetty will set about paying rent for renters on the first of the month. Then, the renters will have until the 24th to pay rent to Jetty.
“It’s a tricky situation—property managers need predictable cash flow to meet their financial obligations, yet forcing renters to meet rigid, first-of- the-month payment dates doesn’t reflect the financial realities of today’s renter population,” said Mike Rudoy, cofounder and CEO of Jetty. “We solved this monthly headache with Jetty Rent, which gives renters more flexibility with payment while at the same time offering property managers the reliable cash flow they need.”
He said the company had been seeing robust demand for products such as this, with both renters and property managers asking for such a thing.
The press release says the epidemic of people failing to pay rent on time has not yielded, with 21 percent of renters failing to pay by the 6th of the month, according to data from the National Multifamily Housing Council.
The new offering was brought about with a new equity financing round worth $23 million from investors including Citi and Flourish Ventures.
In other news for rentals, the Consumer Finance Protection Bureau has rolled out a new way for both renters and landlords to search for ways to cover rent.
Read more: CFPB Rolls Out Rental Assistance Finder For Renters And Landlords
The idea is to help renters stay housed through connecting tenants and landlords with state and local programs. It also works with local programs giving out federal assistance.
“Millions of people are behind on their rent and at risk of eviction as a result of the pandemic,” said CFPB Acting Director Dave Uejio. “The Rental Assistance Finder will make it easier for renters and landlords to locate the financial assistance available in their area.”