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Rhino, a company that seeks to provide services to renters, announced this week it had entered into an agreement to acquire a company that works with landlords on collecting and managing security deposits.
The acquisition of Deposify will offer landlords an end-to-end compliance and deposit management platform, the companies said in a statement announcing the deal.
The acquisition is expected to close before the end of the year.
“While renters and landlords alike are enthusiastic about our work to introduce a new way to secure a home with Rhino’s deposit insurance product, the reality is cash deposits will continue to be used for some portion of transactions, and we’re in a unique position to solve those challenges,” Rhino’s CEO Paraag Sarva said in a statement.
Instead of paying a large cash security deposit up front, renters pay Rhino a fee. The company then works with landlords to insure the property owner in case of damages or lost rent.
“We’re going to give renters a world-class, technology-first experience regardless of how they choose to move in: with deposit insurance or with a cash deposit,” Sarva said.
Rhino also unveiled a way for renters to build their credit by reporting on-time payments to credit agencies.
Rhino says its main product has saved renters $1 billion in upfront move-in costs. The company said it also helped save landlords and property managers in operational costs.