Renter financial services startup Jetty has launched a new product to help both renters and property managers combat issues that arise from late rent payments.
Jetty Rent is a new product the company announced on Wednesday that will allow renters to choose when they want to pay their rent each month, up until the 24th. Jetty will pay rent for renters on the first of the month, and then renters can repay Jetty in their own time, either through one payment or in installments. The service does have a nominal fee for renters of a few dollars.
The product was established and brought to market through the backing of a $23 million equity round that included Citi and Flourish Ventures as investors.
During the first six months of 2021, an average of 21 percent of renters did not pay rent by the 6th of the month, according to the National Multifamily Housing Council. After that date, late fees typically begin to accrue from property managers. With the CDC’s eviction moratorium now no longer in place, many renters will once again be charged fees for late payments, Jetty’s press statement noted.
Mike Rudoy
“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,” Mike Rudoy, co-founder and CEO of Jetty, said in a statement. “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.”
In partnership with Cortland, a real estate investment, development and management company, Jetty has now rolled out Jetty Rent across a number of its portfolio properties. The startup has a landlord and property manager client base that owns about 2.2 million rental units.
“At Cortland, we’re focused on improving the resident experience, and the process of paying rent is a massive part of that,” Jonathan Kim, director of ancillary services at Cortland, said in a statement. “Jetty Rent makes life easier on our residents and takes the burden of rent collection off our shoulders — it’s a true win-win.”
In addition to Jetty Rent, the company also offers renters insurance (“Jetty Protect”) and a security deposit replacement (“Jetty Deposit”).
At the start of the pandemic, Jetty laid off about 40 percent of employees, and according to The Real Deal, the new funds will be used to bulk up staff numbers and deploy Jetty Rent nationally.