Renting property is something most Europeans do at some point in their lives. Whether as a student, a young professional, or even a retiree – renting property is an incredibly popular way for Europeans to have a roof over their head. But – it’s increasingly becoming a problematic area. Inflation, rising deposits, and skyrocketing rental prices are just some of the big hurdles facing the millions of renters across the continent.
Aiming to fix this by making renting more inclusive, affordable and realistic, Munich-based Garentii has just scooped up €1.9 million for its specialised rental platform. The funding, which will help the young startup launch, was led by Greenlight Re’s Innovations arm and followed by Dublin-based Elkstone Ventures and German private investors.
Founded in 2021, Garentii offers an easy all-in-one tool that simplifies security deposit management for landlords whilst also making renting affordable and accessible. It was developed by finance specialist Michael Hazoume (CEO), real estate expert Dennis Stern (CBDO) and software expert Vitaliy Zhovtyuk (CTO).
CEO and Co-founder, Michael Hazoume, explained: “Paying cash deposit is just not fun. It is one of the most inefficient use of capital for renters and an admin burden for landlords. We want to make rental transactions simpler, more affordable and inclusive to everyone.“
The vision behind Garentii is to bring about a shift in renting behaviour, to use digital security deposit insurance to effectively ‘unfreeze’ the estimated €30 billion that sit as cash deposits in bank accounts in Germany alone.
Paying a rent deposit has never been an enjoyable experience. It’s a massive lump of money that then generally sits in a bank account without benefitting the local economy, whilst being a massive expenditure for the renter. In today’s context of skyrocketing prices and soaring inflation – it’s just not feasible and something has to change. Renters are increasingly demanding more flexibility and cash-light alternatives.
With Garentii, instead of the usual 3 months’ rent in a cash deposit, renters pay a monthly fee starting at just €3. The all-in-one tool replaces traditional rental deposits and, for landlords, simplifies the time-consuming process of managing cash deposits while providing absolute security in the event of damage or unpaid rent with 48-hour pay-out on claims.
The platform allows landlords to manage all their deposit policies in one single place without the typical administrative burden of a deposit. It lets renters find a place to live without the financial toll of a big lump sum.
CEO and Co-founder, Michael Hazoume, said: “We´ve built an embedded insurance solution that creates value not only for renters but for real estate landlords”.
Garentii will launch first in Germany, which is Europe’s largest housing market and 55% of its population is renting. The market launch is planned for June. The company plans to expand into other countries later this year.
Simon Burton, Chief Executive Officer at Greenlight Re, said: “Security deposit replacement insurance has already seen success in the U.S. and is a great product for replication in other markets. By developing a tech platform for landlords to distribute and administer policies, Garentii will make renting an apartment smoother for both landlord and tenant.“
Alan Merriman, CEO and Co-Founder of Elkstone also commented: “Garentii has the potential to tackle the inefficiencies of the rental market and lower the barrier to renting for both landlords and renters. The Garentii team has a deep understanding of the real estate market, and has built the digital platform it needs to execute on its mission to disrupt the rental system across Europe. Elkstone is proud to be support the team in its journey to realising this vision.”