Blogs

Impact of Zero Deposit on Rental Market

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Written by: Sardish
BlueDuck Operation Assistant


Renting, otherwise termed leasing or letting, is an agreement where an installment or monthly payment in terms of cash is made for the entire duration of using a property possessed by another individual or agency.


Reasons of Renting

The most important reason when it comes for a tenant to rent a property or just a part of the property ( for ex : Room ) is to minimize the monetary usage due to depreciation or purchasing costs, particularly for land or a property which may only be required  for a short period of time. (eg: working & studying ).


Apart from that,  renting can possibly generate a constant stream of income for the owners of the properties. As the saying goes “The more the beat (the occasions the property is rented) the higher the pay”. Ultimately, the rental income surpasses the property purchasing value and the payments of rental then would turn into a profit for the landlord. 


History of Zero Deposit

Co-founded by Jon Notley, a former Commercial director at Zoopla,Gavin Wiseman and Ben Austin, Zero Deposit is the trading name of Global Property Ventures Limited and is partnered with insurance industry leader Munich Re.

The Zero Deposit is a choice rather than the traditional rental payment, in it is compulsory for the tenant to pay an upfront of two months rental even more in some cases. Rather than paying the deposit with their hard earned cash, tenants pay an amount equivalent to 10%-30% of the customary deposits to move into their new home just by purchasing an appropriate insurance package. The property manager / Landlord will be protected against rental loss up to the worth of about two months of rental.

Impact of Zero Deposits in Rental Market

Reduced dilemma for Landlords

Rental collections can make waves in the traditional rental system. Landlords would have to wait for hours begging their tenants for the rental payments. As some tenants are really adamant on not paying the rental on time or on the agreed amount, this can cause a real headache for landlords who sometimes depend on the rental for their livelihood. 

Zero deposit schemes have proven to remove the conflict that may arise between the landlords and tenants as the scheme providers are a liaison for collecting the rental from the tenants and passing over the rental to the landlord. The tenants who signed up for the Zero Deposit scheme would have to sign up for the Direct Debit rental deduction which may ease the workload as the deduction will happen automatically at a preset time and amount. This would be an advantage for the Landlords as they will be able to collect the rentalon time with ease and wouldn’t even think twice on renting out any additional properties they have through Zero Deposit schemes which would increase the rental market economy.


Increased rental return for Landlords

                                                                   

Figure 1: Rental price differences between Traditional Deposit and Zero Deposit. 


Figure 1 shows the result of a research on rental prices differences conducted by BlueDuck, a provider of Zero Deposit scheme in Malaysia. As there is no deposit payment involved during a rental period, Landlords and agents are able to increase the rental prices of their properties. This increase in rental prices would not be a burden on the tenants as the tenants could enjoy the rental without forking out their hard earned cash on deposit payments (which is done in traditional deposits). This could be a helping hand in improving the revenue of the landlords in the rental community.


More CashFlow into Economy

In the traditional rental, where the landlord collects a deposit payment usually made up of a couple month’s rental. In the case of renting a unit with a high rental price would cause the tenant to have an added burden as they would have to cough up a great deal of money in order to pay the deposit for the property. This scenario can be completely avoided by both parties as the tenant could secure the desired property with just a mere insurance premium payment. Meanwhile, the landlord will have the advantage of renting out his/her property faster and enjoy the monthly payment rental received. With the implementation of zero deposit schemes, the cashflow into a nation’s economy can be increased as there will be vacancies in the Zero Deposit agency, rental fee deductions and the purchase of insurance for their property thus increasing the cash flow in this industry. This would not only increase an individual’s net worth but also to soar our nation's economy.


Improved confidence for Landlords

In the rental industry, not all rental ends with both sides being a happy camper. Some rental property landlords could not have a good sleep at night thinking about the circumstances of the furnishings in their rented property. With the Zero Deposit insurance, Landlords could have a better sleep at night as the furnishings are protected by insurance. In the case of a tenant who had a rough day at work and decides to vandalize the furnishings / appliances in the rented property, the landlord would be able to claim the price of the damaged items (proven that it has been done with a malicious intention). Besides that, Landlords would also be able to get a claim in the case of a tenant run away leaving behind a series of unpaid bills. With the Zero Deposit insurance coverage, the landlord would be able to sleep peacefully which brings to the saying happy sleep = happy life.


In Conclusion

Zero Deposit schemes ( https://www.blueduck.my/)  has a lot of positive impact on an individual’s and our nation’s economy. Due to a worldwide Covid outbreak, added with the burden of  layoffs, more and more property owners are making a livelihood based on their rental incomes and tenants would be able to enjoy a rent without deposit. Zero deposit schemes are able to boost the rental market prices, bringing in more revenue to Landlords, Property Developers and Shareholders thus carving a path to make Malaysia greater.


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Penyewa! Sewa lebih Mudah, Cepat dan Adil dengan Deposit Sifar BlueDuck

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Written by: Eliza
BlueDuck Content Creator

Anda mesti pernah dengar deposit 1+1, 2+1, atau 2+1+1 kan? Apa maksudnya? Maksudnya di sini, penyewa perlu bayar deposit 1 atau 2 bulan harga sewa. Semestinya anda perlu keluarkan duit yang banyak untuk berpindah ke rumah baharu. Istilah deposit sebenarnya boleh disama ertikan sebagai cagaran atau jaminan untuk sesebuah rumah sepanjang tempoh penyewaan. Jadi, jika berlaku sebarang masalah selepas tempoh tersebut, wang deposit tadi yang akan dijadikan sebagai cagaran atas kerosakan yang berlaku. Risiko yang selalu dihadapi oleh tuan rumah jika tidak mengambil deposit sebelum tempoh penyewaan adalah kerosakan barang rumah, bil-bil tertunggak mahupun penyewa melanggar kontrak tempoh sewaan.


MASALAH

Ramai orang terutamanya penyewa runsing untuk mencari duit bagi membayar deposit sewa rumah tambahan pula apabila dikenakan bayaran yang tinggi. Bukan sahaja anda perlu bayar sewa bulan pertama, malah perlu juga bayar deposit sekurang-kurangnya 2 bulan mengikut kadar harga sewaan rumah tersebut. Dengan keadaan ekonomi sekarang yang tidak menentu, tambahan pula pandemik Covid-19, pasti situasi ini amat sukar bagi sesetengah penyewa yang ingin mendiami rumah idaman tetapi tidak mampu untuk mengeluarkan duit yang banyak. 


PENYELESAIAN

Jadi, kami BlueDuck ada penyelesaiannya. Penyewa kini dengan sekelip mata sahaja dapat berpindah ke rumah baharu dan membelanjakan hanya sedikit wang untuk bayaran permulaan sewa. Anda tidak perlu lagi pening kepala untuk mengumpul duit yang banyak hanya untuk menyewa sesebuah rumah. Kenapa? Sebab sekarang kami boleh bantu kurangkan bebanan anda untuk berpindah ke rumah dengan cepat dan selamat tanpa deposit. Simpan duit anda untuk kegunaan harian atau pada masa akan datang seperti barangan keperluan rumah, barangan runcit, langganan Netflix, mahupun bayaran ansuran kereta. 


Proses untuk daftar profil penyewa juga amat mudah dan adil dengan melakukannya di website kami, isi butiran yang diperlukan dan daftar dengan menggunakan emel anda untuk tujuan pengesahan serta membeli pakej Deposit Sifar bermula dari harga RM450 sahaja setahun bagi sewa bulanan RM2000 dan setaraf. Cara ini sangat jimat kerana anda akan mempunyai wang yang banyak di tangan berbanding deposit tradisional iaitu bayaran deposit 2 bulan setengah sewa ditambah lagi dengan sewa bulan pertama. Cuba anda kira dan memang diyakini jimatnya di situ.


Berapa banyak yang anda akan jimat? Baiklah.

Contoh: Sewa bulanan RM2,000

Deposit tradisional: RM5,000 (cagaran) + RM2,000 (sewa bulan pertama) = RM7,000 

Deposit Sifar (ZD): RM2000 (sewa bulan pertama) + RM450 (pakej ZD) = RM2450

:- Jimat sehingga RM4550 berbanding deposit tradisional. Lebih tinggi nilai harga sewa bulanan, lebih banyak yang anda akan jimat.


Fikir-fikirkanlah.   

Oleh itu, daftar dan “Buy Now, Use Later” dengan kami sekarang di website, klik www.blueduck.my/tenantprofilesignup .

Pilih pakej yang anda mahukan dan nikmati Deposit Sifar yang kami tawarkan dengan sangat berbaloi. 


 


Bye-Bye deposit sewa. Deposit Sifar, ingat BlueDuck.



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Three Deposit Replacement Schemes Dispelled for Property Agents

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Written by: Timothy Woon
BlueDuck Business Partnerships Executive

Rent your ideal property faster than before! Landlords, get protected! Tenant, no need forks up hefty deposit!
A “BlueWave” of Zero Deposit is entering the residential and commercial renting market and promising awesome advantages to landlords, agents and tenants.
In the world of renting, traditional deposit and zero deposit can seem confusing. We are here to dispel some common illusions about zero deposit.



Illusion 1: Zero Deposit is Unpopular

Reality: The zero deposit market is booming! Our BlueDuck Zero Deposit mean tenant do not have to pay a hefty of their savings upfront for their rental deposit. Meanwhile, landlords get enhanced protection and agents get a great alternative solution to help them stand out from competitors. We have over 2,000 property agents trained in BlueDuck product and system and that number’s growing all the time!

 
   

 Illusion 2: Damage is more likely to be created by tenant if no deposit collected
Reality: Some people worry about zero deposit tenants will leave the property in bad condition because they think the zero deposit provider will pay the bill. In reality, tenants are just as liable for damage and unpaid rent as they would be with a traditional deposit. We make sure our partner agent is well trained and brief tenant their responsibility when they buy their BlueDuck Zero Deposit package. In fact, the landlords we work with have greater protection because we give up to 6X higher coverage compare to traditional deposit.



 Illusion 3: I will enter into a mis-selling scandal if I sign up for Zero Deposit 

Reality: If you are worried that zero deposit could lead to financial claims further down the line, you do not need to be. Bear in mind with all business decisions: do your research! Make sure the providers have a good reputation. At BlueDuck Zero Deposit, we are collaborating with Liberty Insurance Malaysia, a license insurance provider regulated by the BNM, which means we are legally obliged to protect the rights of our landlords and treating tenant fairly as in verifying and qualifying based on their credit history or documents submitted. This authorisation gives our trained agents being transparency when explain to landlord.

In conclusion, Zero Deposit helps tenant to save their cash while still holding tenant responsible. Apart from that, as we have ongoing training for agents making sure that their zero deposit knowledge are updated to reduce on mis-selling. Because collaborating with an insurer does not guarantee that mis-selling will not happen. However, maintaining relationships with agents, being attentive to their problems, and committing to providing the necessary training to equip them with knowledge are all important. We hope this helps make clear about zero deposit easier. Still confused?


Book a slot via calendly.com/blueduck/zerodeposit for Zero Deposit training or call 016-6117154, we'd love to help clear up your queries!


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Should Landlords Take Zero Deposit Insurance?

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Amirah Mahayadin
BlueDuck Operation Associate


Deposits are the main thing that landlords should be concerned about when they want to rent a house or rooms. Upfront deposits for house rentals are mandatory as they give protection to both tenant and landlord. 


In Malaysia, it is hard enough to find a landlord that rents a house without a security deposit. Most of them provide security deposits to the tenants. Tenants usually pay a security deposit of two to three months’ gross rental and another ½ month of rent as utility deposit. Rent is usually paid one month in advance. With a BlueDuck Zero Deposit Solution, the landlord did not have to worry anymore about renting property after this. 


BlueDuck Zero Deposit Insurance

BlueDuck Zero Deposit Insurance is designed to replace traditional security deposits with high value protection. It gives high security to the landlord and tenant during the rental period. This zero deposit solution replaces the need to pay cash deposits for tenants and give ease to the landlord.


3 Reasons Why Landlord Should Take Zero Deposit Insurance 


1) High Protection and Coverage


BlueDuck offers 4 personalized insurance packages for units and rooms that landlords can choose. Landlords can get the coverage of up to 2 months for loss of rental, up to the latest 2 months of unpaid utilities bills and malicious damage, totaling up to selected packages. Landlords can be rest assured when taking zero deposit insurance from BlueDuck.This zero solution is secured to the landlord as all the processes are done online with proper documentation. Moreover, this is underwritten by Liberty Insurance Malaysia Berhad. This insurance is to replace traditional deposits. If a tenant flees and the landlord has purchased zero deposit insurance, the landlord can file a police report and the insurance company will reimburse the landlord for up to 2 month’s rent.


2) Direct Debit Service 



This Zero Deposit Insurance comes out with Direct Debit service that allows the landlord to collect rental automatically every month. Reminders to pay the rental will be sent to the tenant once no rental is received from the landlord. For tenants, monthly rent is collected directly from a savings account or credit card. In order to ensure the claim process is smooth and faster, BlueDuck will be a third party to verify whether the tenant has made payment. All tenants need to use BlueDuck E-mandate by FPX system to make rental collection faster. 


3) Mitigate The Risks



Most landlords will have to deal with troublesome tenants at some point, and it is never easy.

BlueDuck will run a credit check with the credit agency if they have previous runaway records, BlueDuck will not accept them. BlueDuck reserves the right to blacklist tenant’s CTOS. Besides, the landlord can avoid a void period. A void period means when the property is left unoccupied with no rental income for the landlord. By using the Zero Deposit solution, landlords can speed up the rental process by attracting a wider audience of prospective tenants.


BlueDuck Zero Deposit Insurance offers great benefits to tenants and landlords. If you’d like to find out more or would like to offer this zero deposit solution on your property, visit our Landlord page on https://www.blueduck.my/.


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BlueDuck in collaboration with Dreamvest Realty offers Rental Insurance for Secondary Market

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In BlueDuck, we are pleased to announce on this collaboration with Dreamvest Realty. Our two companies share a passion for bring the real estate industry up to speed by offering landlord insurance to the market.


Led by a team of vibrant and energetic leaders. Dreamvest Realty is formed by three directors with combined over 20 years of experience with over 200 active real estate agents across Klang Valley. Dreamvest Realty is experienced in various fields including residential high-end condominiums, industrial and commercial properties.

“With so much potential for rental insurance to grow big in this country, we at Dreamvest Realty feel the time is ripe for us to get involved in it,” Charles, Executive Director of Dreamvest Realty.

 “We aim to commercialize rental insurance to the secondary market to do away the high initial rental deposit. Through this collaboration, and with the full support of these key stakeholders, it can leverage its strength on reaching out to the newly VP properties owners.” Earnest Wong, Founder of BlueDuck added.

Currently, Dreamvest Realty target area are in Setapak, Wangsa Maju, Old Klang Road, Bukit Jalil and Sri Petaling mainly on residential condominiums and focusing on the newly handover buildings like Citizen 2, Pinnacle, etc.

With that, Dreamvest Realty – the achiever in real estate is now extending its services on tenant management by providing end-to-end tenant management through technological systematic rental collection using FPX system that is aimed to be launched in June 2021 in having tech partnership with T+, the leading tenancy operating system in Malaysia, product of BlueDuck.

BlueDuck Truck has just ended its roving tour by having its last stop at Old Klang Road yesterday. Stay tune to announcement of the top 3 winners in the Snap, Share and Win contest tomorrow on BlueDuck Facebook page at www.facebook.com/blueduckmy.



BlueDuck, the Fintech in Malaysia is the exclusive distributor of Zero Deposit, underwritten by Liberty Insurance Berhad. Aiming to make rental experience better and commercializing rental insurance for the secondary market. Its next in line product is the Zero Deposit in commercial properties. We connect with agents to offer this Zero Deposit solution. Buzz us!


For Zero Deposit information, reach out to http://wa.link/a13qcw or check out www.blueduck.my.
For leasing of your VP properties, reach out to Dreamvest Realty at 03-9054 2525 or check out https://www.dreamvest.my/.

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Sharp Rise in Number of Agents offering Zero Deposit

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Sharp Rise in Number Agents offering Zero Deposit

There has been a significant of increase in number of letting agents are offering Zero Deposit and many are benefited from it mainly for 2 reasons – faster enquiry, solving the concern of tenant and landlords.

BlueDuck Zero Deposit – designed to unlock deposits to increase cashflow for property industry. This insurance policy – BlueDuck Zero Deposit was introduced back in September 2020. It was initially rejected by many due to lack of understanding from agents – mainly they were afraid that this is to disrupt their sales process. After rounds and rounds of educating the market, it is proven that BlueDuck Zero Deposit is here to enhance the property market.



Tenant Remain Accountable

Under the term of Zero Deposit, tenants remain accountable for any damages, unpaid rents, and outstanding utility bills. And many may ask how? This will be recorded in tenant’s CTOS report. Banks decline your loan application based on how you have behaved in the past – whether you paid your bills/loans on time, and that will affect your credit scores.

With this, irresponsible tenants will be filtered in this 12-24months while a group of responsible tenants will be combat with people’s tenant’s bias. Creating a healthy rental market for all the players – landlord, property agent, and tenant.

Landlord Gets Protected

BlueDuck Zero Deposit underwritten by Liberty Malaysia Bhd which allow landlord to have their rental risk by covered by insurer up to 2 months rental, unpaid utility bills and malicious damage by tenants. This can address landlord’s concern of unlocking their cashflow yet being protected at the same time.

Our message is clear - If agents are offering Zero Deposit as replacement of deposits, it is vital that landlord gets protected by insurance which go up to extra 100% protection compared to collecting traditional 2.5months of security deposits. Also, agents remain at service for their landlords.

For more information, check out our website at www.blueduck.my

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