Subscription bond service Bondable promises to shake up rental industry

Subscription bond service Bondable promises to shake up rental industry

Australia’s first technology-driven, subscription rental bond service, Bondable, has been launched to revolutionise the property industry and create a more affordable, transparent, and efficient rental system for tenants, agents, and landlords.

Powered by Australian-based fintech Hutly, Bondable is a standalone, innovative solution providing a new way to bond. For only $19.99 per month, the subscription service means a tenant no longer lodges a cash bond, providing a seamless, digitally enabled dispute mediation service with a complimentary bond guarantee, benefitting the tenant, property manager, and landlord.

Commenting on the solution, Bondable Founder Jeremy Hastings (pictured) said Bondable was designed to reward tenants with a good credit and rental history, whilst solving real problems in the offboarding process for both landlords and property managers.

“Bondable was created for the everyday Australian who wants to be a good tenant and do the right thing,” Hastings said. “With rising cost of living and soaring rental prices, locking away thousands of dollars can put a strain on household budgets or mean Aussies miss out on life’s small luxuries, like a well deserved holiday. For less than the cost of a phone plan, Bondable puts trust back in quality tenants, while ensuring agents and landlords are protected.

“Today’s renters are relying on a decades old bond system, which is creating financial strain for Australians, additional headaches for agents and landlords, and pressure on housing supply due to delays in offboarding tenants and re-letting properties. While traditional bonds still have an important role to play, we believe there is a clear need and rising demand for a new way to bond that says goodbye to hassle and hello to stress free renting,” Hastings added.

Through Hutly’s technology partnership with the Real Estate Institute of Victoria (REIV), the peak body for Victorian real estate professionals, Bondable has undergone 18-months of extensive Beta testing, with users reporting many benefits of the service including a more transparent rental experience and a freeing up of cash flow. Bondable is launching with the REIVs full support as a trial across their network.

Jacob Caine, President of the REIV, said, “The REIV is supportive of positive innovation in the industry and believes Bondable can play an important role in solving the affordability crisis in Victoria and bringing portability to tenant bonds. Data from the last 18 months of Beta tests with tenants and agents indicates this product is a positive step forward for all.

“We welcome Bondable’s entry into the real estate market and will continue to help educate the industry about the value Bondable represents as one of several options available for Rental Providers and Renters.”

Designed to save time, money, and inconvenience for landlords and agents through a more streamlined and efficient tenant offboarding process, Bondable conducts extensive tenant checks, ensuring it is only working with quality renters. Additionally, Bondable facilitates instant claims payments, absorbs financial and recovery risks of disputes, and is financially guaranteed by an independent insurer.

“Bondable gives landlords and agents peace of mind that they are financially protected,” Hastings continued.

“Agents can lodge a claim and use Bondable’s digital mediation service to efficiently offboard the tenant. In the meantime, landlords and agents can rest easy knowing Bondable will instantly pay the value of the claim, up to one month’s rent, while the claim is being mediated and settled between the tenant and landlord.

“Furthermore, Bondable is fully insured, meaning in the unlikely event Bondable was to stop operating, the existing bond guarantees would continue. This third-party assurance was really important to us as we wanted to give all parties, including the broader public and government, the confidence that Bondable is just as safe as a traditional cash bond.”

Powered by Hutly, Bondable benefits from the business’ deep industry expertise and networks. As an industry leading fintech platform facilitating interactive, end-to-end property contracts, Hutly services 4000 agencies through 1 million contracts and approximately $18 billion in rental value transacted every year.

“When I founded Hutly in 2018, my mission was to transform a traditional paper based property contract agreement into a Living Contract – an engaging experience that could be interacted with regularly, rather than a piece of paper collecting dust in a bottom drawer,” Hastings said.

“Through bringing contracts to life, our objective is to sharpen focus on a compliant, proactive, and productive relationship between all parties, resulting in less disputes and stress during what is typically an emotional time.

“Fundamentally, we believe every Australian deserves a safe, stable, and certain home, no matter their circumstance and this starts and ends by building strong relationships between people,” Hastings said.

Commenting on the genesis of Hutly and Bondable, Hastings said his passion for property stems from his own personal childhood experiences, which gave him a unique appreciation for home.

“Growing up as one of four children in a single parent household, the right to stable, secure housing was one I could not take for granted. I witnessed my mother carry the burden of worrying about having a roof over our heads, and the simple concept of raising maintenance issues came with the very real risk that this may result in further rental increases and moves. We moved 14 times before I went to university.

“Bondable’s digital mediation service aims to take the worry and stress out of ending a rental agreement, one of the areas of renting that creates the most friction, stress, and emotion for everyone. The complimentary bond guarantee also means quality tenants no longer have to lock away thousands of dollars just to get access to a home.

“It is a proud moment to deliver this solution that we believe will have far reaching positive impacts for the industry and everyday Australians.”

Bondable had over 80 per cent of tenants opt into its Beta testing and 100 per cent of trial participants have continued use of the product. Bondable is launching with tenants in Victoria, with plans for a staged roll out nationwide of the subscription service.