How this prop-tech start-up is disrupting the SA rental market

HouseME, a disruptive property technology company, has been making waves in the South African rental market with its innovative solutions. The company, often described as the 'Airbnb for long-term lets,' has attracted significant attention from investors who have injected millions into the digital platform. HouseME's Co-Founder and CEO, Ben Shaw, recently sat down with CNBC Africa to shed light on the company's groundbreaking approach. One of the key features that sets HouseME apart is its Deposit Free product. This product allows tenants in South Africa to rent apartments without the need for a traditional security deposit held in a trust account. Instead, tenants pay the equivalent of one month's rent as a deposit. HouseME handles the vetting process, credit checks, and other administrative tasks, providing a seamless experience for both tenants and landlords. Shaw explained that the company's mission is to create a transparent and efficient market that benefits both parties involved. By leveraging technology and data-driven algorithms, HouseME is able to offer its services at a fraction of the cost compared to traditional agencies. Landlords are charged a fee of 2.5%, significantly lower than the industry average of 10-12%. Meanwhile, tenants can enjoy the convenience of renting without a hefty deposit, paying only a monthly fee. The Deposit Free product has garnered significant interest, with nearly 50% of eligible tenants opting for this option. Shaw emphasized that there is a clear market need for such solutions, especially as consumers face economic pressures. With stories of reliable renters unable to afford traditional deposits, HouseME's Deposit Free offering has been a game-changer. The company has also introduced additional products like rental insurance and eviction coverage to further support landlords and tenants. Shaw highlighted the positive feedback and loyalty from HouseME users, with over 75% expressing interest in multiple products offered by the platform. Despite the challenging economic climate and property market conditions, Shaw remains optimistic about HouseME's impact. The company has already managed a portfolio of nearly a thousand properties across the country, a testament to its success in a relatively short period. Shaw pointed out that HouseME's technology-driven approach has reshaped the rental market by empowering landlords and tenants alike. By providing tools like the 'place me' feature, which enables tenants to negotiate rental prices directly, HouseME has fostered a more efficient and transparent leasing process. In the current market scenario, Shaw emphasized the importance of addressing supply-side pressures, which continue to impact pricing and availability. While some expect a quick recovery, Shaw believes a more gradual improvement may be on the horizon, with supply outpacing demand in the residential rental sector. This trend has contributed to depressed prices, particularly in regions like Cape Town, where average declines have reached up to 18%. Looking ahead, Shaw urged landlords to explore negotiation strategies and leverage platforms like HouseME to navigate the evolving market dynamics. In conclusion, Shaw shared insights into HouseME's success in mitigating risks for landlords and ensuring a smooth rental experience for all parties involved. With a strong focus on data integrity and customer satisfaction, HouseME has positioned itself as a key player in the South African rental market, poised to drive positive change and innovation in the industry.