Tenants of apartments or houses typically pay a deposit of three months' rent. The landlord then deposits the money into a special bank account at low interest rates. The money thus sits idle and yields little return.
Garentii offers landlords a security deposit instead of a cash security deposit from their tenants. In the event of damage that would be covered by the deposit, insurance companies will step in and cover the damage. The tenant covers the costs of the security deposit in the form of a monthly fee.
“Garentii will make renting an apartment as simple and seamless as possible”
The reinsurer Greenlight Re, Elkstone Ventures and an unnamed German private investor are now investing 1.9 million in the Munich-based StartupThe capital is intended to secure the company's growth after its official launch in June. The company's initial target market is Germany due to its high proportion of tenants. Expansion into other countries is planned for this year.
Simon Burton, CEO of Greenlight Re, says:
"The security deposit replacement insurance model has already proven successful in the US market and can be perfectly replicated in other high-tenant markets. By developing its technology platform for processing and managing security deposit insurance policies, Garentii will make renting an apartment as simple and seamless as possible for both landlords and tenants."
