Blogs

BEHIND THE SCENE OF SERIES OF MARKET EDUCATION

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This is gonna be a longggg article. So bear with me.

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Just kidding.

The Launch of BlueDuck Zero Deposit

As the year marching to an end, we are very grateful of how far we've come. When BlueDuck Zero Deposit was in creation stage, we realized that there were huge market gaps. Throughout the discussion with the insurance company, it is all about maximizing the benefits for the policy holder, and yet mitigating risk, ensuring the sustainability of the product. After a long one year, finally, our BlueDuck Zero Deposit is officially launched in Q4, 2020 (kudos to our Founder, Mr. Earnest Wong).


BlueDuck Zero Deposit, a landlord insurance co-created with Liberty Insurance Malaysia Berhad, designed to replace traditional deposit, yet protecting landlord's interest unlock the cashflow in the market, providing a winning scenario for all parties.


In the past year, with the pandemic and lockdown happening. The industry has striven its best in adapting and adjusting to the new norm. There were a lot of virtual meetings and events happening and in BlueDuck, we’re proud to be part of the journey. We know that this is the time, the time to educate the market.

Educating the Market

What’s memorable was the first sharing on Instagram. We’ve been engaging our audiences through Facebook Live. In a different space, different audience, I must say we’re thrilled! From the session with @Propview, we spoke about this new norm in the Rental Market to the landlords and tenants. The session was hosted by the ever engaging and entertaining Adam. Such a great experience.

 

First Instagram Live: BlueDuckxPropview: The New Norm in Rental Market


 

Through the effort of connecting with our audiences, it is also our pleasure to be part of the RE:Connect, organized by Unissu to speak to the International audience. Malaysia, being the first in Southeast Asia to have launched Security Deposit Replacement Scheme, not only that our in-house developed tenancy system is worth discussing as it has been one-of-a-kind tenancy system with Fintech solutions embedded with white-label solution.


First International Reach


First International Reach: RE.connect: The Old School Tenancy Management Post Pandemic Transformation


At the beginning of the year, it is all about the transition or transforming from offline to online tenancy management especially during this unprecedented pandemic. And it was indeed thrill to see many short-term accommodation players are transitioning their business model to hybrid model (offering both short and long term accommodation) and begin to incorporate systematic approach to the business through subscription of tenancy management system.

By the end of the year, we’ve also participated in Asia Pacific Proptech Summit 2021, organized by Malaysia Proptech Association 2021 as panel speaker to speak about the digitization on tenancy management processes.


An interesting question was asked during the session about the market disruption with technology. With Facebook introducing metaverse, it is exciting for all to look forward to where it is leading us. But again, will technology disrupt the market? Or, are we incorporating technology into the business and disrupt the current process flow and leads to a transparent, and streamlined experience? It was a great session with fellow real estate players and good to meet a Hong Kong proptech enthusiast Mr. Vishal.

First in PropertyGuru: Asia Largest Online Property Portal Group

Last but not least, huge pleasure being able to share about Zero Deposit insurance in the POV of a landlord. In the session, we have discussed about the initial idea of collecting a deposit. Not only a market practice in Malaysia, but everywhere in the world.

In Europe, it is a norm for tenants to move in by getting an insurance for the landlords in order to lower the initial move-in cost, and protecting landlords’ interest.

However, is it sustainable? A copy of the session was uploaded into YouTube and you should definitely check it out: https://www.youtube.com/watch?v=5KDPZYQDIWI


 

All in all, Zero Deposit solution, a modern rental solution that we’ve been advocating. An enabler translating to faster rent out, reduce vacant units to promote cashflow for all parties in real estate. We’ve faced many questions; doubt of the product sustainability and credibility and it is all due to the lack of education and speed of information delivery.

With that, we’re working closely with real estate agents, the frontliner in the market to deliver this piece of exciting market info to their landlord. And we are already seeing landlords offering this solution! Amazing.

With all said, I believe that everyone of us, the market players, are ready to continue to educate, and progress. Oh hey, we’re launching our Commercial Zero Deposit in January 2021! Stay tuned.


“Innovation is taking two things that exist and putting them together in a new way.“ - Tom Freston (born 1945), Co-founder of MTV


It has been great year in 2021, and we're looking forward to a even better year in 2022! I am super honored to be able to speak in several platforms for BlueDuck and I just can't wait to share more of our updates. Do like, share and follow for more exciting news from BlueDuck here: https://www.facebook.com/BlueDuckMY/


Cheers,                                                 

Cassandra Wong,

Chief Revenue, BlueDuck Malaysia.

 

 

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WHY BEING A CREDIBLE AND QUALIFIED GOOD PAYMASTER IS IMPORTANT

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Written by: Putri Nurazmina
BlueDuck Community Executive

In your journey to apply to rent a rental property, you must have heard the word “paymaster” or “credit profile” but had no idea what it means. Well, to explain simply and briefly, “paymaster” is a word that usually refers to a person who pays for something to happen or whose job is to pay their company’s employees’ salaries. However, in this case, the term “paymaster” is referring to yourself; a person who pays their own dues and debts. On the other hand, a “credit profile” is a record of your credit activities. All those things that you pay (does not matter if it is successful or not) with your debit card or credit card are all recorded. How you spend your money and how much you have, creates your credit profile. All those activities, especially ones where you pay your dues and debts are what shape and determine whether you are a good paymaster or not. 


So, in the process of choosing a tenant, agents or landlords usually carry out their own screening process and the most common one is to find out the tenant’s credit profile. By having the tenant’s credit profile, the landlord will gain the confidence that the tenant will be able to pay rent on time. Thus, you can be ahead of the crowd by buying your own credit profile from BlueDuck, also known as the Tenant Profile, for only RM1 (limited time) at https://www.blueduck.my/tenantprofilesignup.


So, why is it important for you, tenants, to get certified and qualified by BlueDuck and receive your own credit profile certificate?


        1. GET ACCEPTED ALMOST IMMEDIATELY INTO YOUR IDEAL UNIT

Landlords may be brave for renting their property to a total stranger 24/7 for a long period of time, but that does not mean that they are not concerned with WHO they are renting their place to. All landlords are concerned about it because it determines whether their investment and their cash flow will be successful or not. Ideally, they will want a tenant who can pay their rent on time, take good care of their property until the end of their tenancy, and ones who avoid brewing up trouble that could lead to an income loss. 

In European countries such as the United Kingdom and the United States, landlords also use a tenant’s credit profile to check whether they have previous criminal records or eviction history. Even though it was reported in 2016 by Credit Bureau Malaysia (CBM) that over 95% of Malaysians are good paymasters, one can never be too careful.

Thus! Once you have passed our BlueDuck Tenant Profile screening, it guarantees that you will be accepted by any landlord into their rental property because you have proven yourself to be a good tenant before they could even ask.

        2. ESTABLISH A STRONG TRUST WITH YOUR LANDLORD

One of the most essential elements in establishing a strong relationship with someone is by having trust between the two parties. From the point of view of the landlord, there will always be an underlying fear where tenants will not pay their rent on time or even maliciously damage the property’s items. Thus, the Tenant Profile can be a solution to reduce or even eliminate the landlord’s fear. By proving yourself to be a good paymaster through the Tenant Profile, a small yet strong trust between the landlord and you, the tenant, will be established. 

        3. PEACE OF MIND

Another benefit you can get by being a good paymaster with a good track record is having peace of mind. For both you and the landlord. Imagine being stress-free from overdue rent. Getting verified and qualified by BlueDuck and passing your Tenant Profile certificate from your first meeting with the landlord can elevate that great feeling, from both you and the landlord, faster without waiting for it to come gradually after being gauged by the landlord in the early months. 

Thus we have come to the end of our discussion. Getting a Tenant Profile can have its own unique benefits and there’s nothing to lose in trying as we are currently giving out a promo code that enables you to buy it for only Rm1!! You can buy your own Tenant Profile at https://www.blueduck.my/tenantprofilesignup. When selecting a package, choose “Tenant Profiling Only” and put in the promo code “ZeroDepositBD”. 

Once you have bought it, your information will be run through our system. In the Tenant Profile, your basic details, verification status, credit profile, and residential history will be included. In one day time, you will get something like the sample below! 



Don’t forget to follow our social media pages for the latest updates! 

https://www.facebook.com/BlueDuckMY/

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BENEFITS OF USING ZERO DEPOSIT INSURANCE FOR YOUR RENTAL PROPERTY

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Written by: Putri Nurazmina
BlueDuck Community Executive

BENEFITS OF USING ZERO DEPOSIT INSURANCE FOR YOUR RENTAL PROPERTY


The world is changing fast whether we like it or not. This includes the technological advancement in the 21st century where the Industrial Revolution 4.0 is currently happening. One of the most obvious things that we can see is the trend of offering an alternative solution using the latest technologies to traditional systems that have been long used in industry and one of them is the BlueDuck Zero Deposit Insurance solution.


BlueDuck Zero Deposit is an insurance solution that has been co-created by BlueDuck and Liberty Insurance Malaysia Berhad. It aims to replace the costly traditional security rental deposit that tenants must pay before moving into their new rental unit or room and unlock landlords’ cash flow. However, new things are not always welcomed, right? Especially when it has been used in the real estate market for a very long time. So why should landlords use our Zero Deposit? Let us tell you some of the benefits!

        1. ATTRACT TENANTS UP TO 5X FASTER

During this difficult time of COVID-19 and an unstable economy, people are looking for any alternatives that can save them extra money. Despite the abundant supply of houses in Malaysia, most Malaysians opt for renting as many could not afford to buy a house as prices are reaching an all-time high. However, another dilemma faced by tenants is when they need to pay a high upfront cost before moving in. Thus, this further delays their final decision on whether they would like to move in or not. By using BlueDuck Zero Deposit, tenants can save up to 75% of their money instead of having to pay up to 2.5 months of security rental deposit. This eliminates the high upfront cost AND attracts tenants to rent your rental property faster! 


        2. UNLOCK LANDLORDS’ CASH FLOW

Rental properties have been a way for people to generate income for decades as it generates good cash flow and it gives extra income in the landlord's pocket each month. However, this is a story for when a landlord’s rental property is rented by a tenant. If a landlord’s rental property is not rented, it means that their cash flow is stuck and they will be facing loss instead. So, the second benefit in using our BlueDuck Zero Deposit is directly linked to the first benefit. By getting tenants faster, landlords can unlock their cash flow faster. Less loss on the landlord's side by not having to continuously pay the bank the full amount of the rental property.


        3. LANDLORD WILL GET MORE COVERAGE THAN TRADITIONAL RENTAL DEPOSIT

Let’s say that your rental property’s rent is RM2000 per month and the tenant must pay 2+1 months before they move in. This means that your security rental deposit is limited to a total of RM5000 traditionally. BUT, with BlueDuck Zero Deposit, the landlord will be getting at least 2x more coverage than that! Taking one of our packages that can cover up to RM10,000 sum assured, in case of a runaway tenant, the landlord can claim up to 2 months of unpaid rent, up to 2 months of the latest unpaid utility bills, and malicious damage. For utility bills, traditionally its claim is limited to only 1 month, but with Zero Deposit insurance, unpaid utility bills can be claimed up to a maximum of the latest 2 months (T&C Apply). In addition to that, landlords can even claim fire insurance for building and content. Do you feel more secure now?

 

All in all, with the ever-changing world, there’s nothing to lose by trying out and using new things that can truly benefit you. Competition is at an all-time high! So, you will need to step up your game or you will be swallowed by other people’s waves in the same field. Be the first landlord to offer an alternative to the traditional rental deposit to tenants and get a good cash flow! Sign up now as a landlord at https://www.blueduck.my/registration/landlord.

Don’t forget to follow our social media pages for the latest updates! 

https://www.facebook.com/BlueDuckMY/


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Claimable Malicious Damage in BlueDuck Zero Deposit

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Written by: Sardish
BlueDuck Operation Assistant

Claimable Malicious Damage in BlueDuck Zero Deposit

In the rental business, not all deals end with both sides being satisfied/happy. There might be events in which the tenant decides to lash out their disagreement towards the items on the property. When a property is protected by BlueDuck Zero Deposit Insurance (https://www.blueduck.my), the landlord will have one less issue to worry about but Landlords always have the misconception that all damaged items are claimable uncertain if it’s a wear & team items or malicious damage.


Malicious 

The definition of malicious is showing spite or intentionally wanting to cause harm to someone. Besides that, malicious intent means the person acted willfully or intentionally to cause harm, without legal justification. An example of malicious activity is bending or damaging the blades of a ceiling fan. 


Damage 

Damages imply physical harm that impairs the value, usefulness, or normal function of something. Damage "does not necessarily imply total loss of system functionality, but rather that the system is no longer operating in its optimal manner". Damage to physical objects is "the progressive physical process by which they break" and includes mechanical stress that weakens a structure, even if this is not visible. 


Malicious Damage

Malicious Damage of Property can be defined as intending to cause damage to the property, or an intending to destroy it. Damage can mean defacing, marking, removing the property or even causing it to be broken. It can be as simple as kicking a door or punching a wall. The damage does not have to be permanent. The intention behind damaging the property can be either reckless or intentional.


Types of Claimable Malicious Damage In Zero Deposit



Types of Non-Claimable Malicious Damage


Common Misconceptions About Malicious Damage Claim

Missing Keys/ Access Card

Might not be considered as the tenant might have misplaced it unintentionally.

Stolen Items (Ex: TV) 
Non-claimable if the item is stolen by the tenant. It will be accepted as a claim only if proven that it was stolen by a non-key holder. (Ex: Break In)
Broken Pipe Line (Internal)
Non- claimable as it might be caused by improper fittings during installation.
Wallpaper / Paint
Non- claimable as it can be claimed for it would mean to purchase and install/repaint the entire wall which is unnecessary.
Wear & Tear Items
Non-claimable as wear and tear items are designed to break/damage after a certain period of time or excessive usage.
Electrical Appliances
Claimable with supported by a technical report stating that the damage was done by the tenant (not by a lightning strike, or old age).
Broken Kitchen / Wardrobe door
Cabinets with loose hinges or worn-off hinges would not be considered malicious damage.
Rubber Items (Washer in pipes leaking)
Non-Claimable as rubber materials are considered a part of wear and tear items and might get damaged due to many other circumstances.

Conclusion

It is always necessary for the Landlord to understand the difference between Malicious Damage and Wear & Tear Items. This would help in speeding up the claiming process in which there will be less hassle when no wear & Tear items were included in the claim. Besides that, by replacing the items that might have been damaged by Wear & Tear item, the Landlord would be able to gain a good reputation and a good relationship with his previous tenants. 

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Renting without Deposit: Hoax or Genuine?

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Does a question arise whether is it true that the landlord can rent the house without the deposit required? Amazingly yes, it is true! A deposit is requested by the landlords to cover any property damage that may occur throughout a tenancy. It is a rare case where the landlord doesn’t ask for a security deposit, but requiring an upfront sum can cause prospective tenants to rule out your property. However, if you look at the zero-deposit solution, you might think that it is the most advantageous for tenants only. But if you think about it further, you will realize that there is a lot to be gained from property owners as well. So, when there is another alternative to help attract more tenants and faster rental to your house, why not give it a try right?




With no deposit required as an option, there will be more people interested in your property. This will attract a wider pool of tenants as many people will be more responsive to a zero deposit than a traditional margin offer. In other words, you will attract more tenants and get your rental income much faster. Furthermore, it will help to protect your interest as a landlord. The zero deposit can provide you with security and insurance for up to 2 months of rental loss, unpaid utility bills, malicious damages, and also the fire insurance for the building and content, that is to say highly protected and a fair judgment.


So, what are the best alternative to help you attract more tenants and faster rental? The Zero Deposit Solution from BlueDuck Malaysia has the answer for you! As a landlord, the goal of renting your house is to have a consistent flow of rental income. Other than that, it will reduce void periods by hopping into this modern solution. An extraordinary method to promote your property to potential tenants in this competitive market. This new type of rental is an alternative to the traditional deposit; faster rent out, cashflow increase, and high protection by insurance.  


So, a new renting solution has been implemented to attract more tenants with keeping your cash flow running, and also reduce the stress associated with collecting funds for deposits, facilitating and accelerating this process for the tenant and the landlord. So as a landlord, what can you do next? Inform the agent, rent out with zero deposit, get protected!

Thanks to this solution, the renting market has been improved to a higher level. Visit our website at https://www.blueduck.my/ for more information, if you wish to have your tenants screen through do have your tenants to get verified & qualified via https:/www.blueduck.my/tenantprofilesignup today! Enjoy a RM14 discount with promo code: ZeroDepositBD apply.

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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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