An Overview of Blockchain Powered Real Estate Rental Services
Posted By : Asha Devi | 31-Aug-2018
The blockchain technology is indeed touching every people and business creating a revolutionary transformation within a short span of its advent. Let us find the ways how blockchain could be integrated with real estate rental business in the marketplace.
The blockchain, though started as a digital payment system, is influencing the major industrial segments today where minimal two parties are involved and there occurs a transaction of assets with increased efficiency, reduced cost and time.
Real estate is one segment where blockchain is creating the disruptions in land conversions, creating land records, purchasing or selling of lands, leasing, mortgaging, rentals, co-ownership, and, etc.
Of these business niches, let us emphasize on rentals, a trust-based marketplace where blockchain plays a significant role. The Blockchain is bringing a giant stride in real estate rental business with a promising efficiency, standardization of the processes, data security, and, etc.
The Current Rental Market Scenario without Blockchain:
The current rental market is indeed a riddle. The information is broken with middlemen or the digital agencies around leading to higher pricing of land on rentals, inappropriate commissions, brokerage, and, etc.
One of the main reason is that the landlords who own several rental properties are into other businesses in addition to this, and the related companies have rental businesses as one of their partnership business, and, so forth.
This leads to less dedicated time and more dependence on the middleman, where there is every chance of mistrust, fraud, loss of money, and other related problems. The other associated problems include impersonification like rental gets contracted to one person, while another unknown family may be residing in the said location; the actual transacting parties might have never met and are strangers to one another, and, so forth.
The main affected people are the owners and the tenants like the students, paying guests, immigrants, business floaters, and, etc.
How to manage this efficiently?
The simple solution is nothing but the blockchain.
The Promising Rental Market Scenario with Blockchain:
Blockchain acts as an adept solution here and plays a key role in managing these controversial situations. The participating members may have a trustful transaction without any glitches or the middleman. Let’s see how.
- Smart contracts automate the conditional transactions without dispute among the participating Parties.
- Once the smart contract gets executed, the tenant would get the smart key automatically and access for the property as per the terms and conditions mentioned in the contract.
- As the transactions stored in the blockchain are immutable or could be deleted, it paves the way for creating an online reputation for both the parties involved.
- The involving parties are able to pay via cryptocurrency wallet.
- It leads to economic and competitive rental pricing as the charges involved for middlemen gets waived off.
- In addition, asset tokenization helps for clear ownership, auditing, and, verification of the owned property.
Further, blockchain-based streamlined process paves the way for less fortunate people to invest in real estate.
Further Reading: 5 Promising Features of Blockchain in Agriculture
In a nutshell, the blockchain-based property ownership and rental services have a promising future. It has its extended role in accommodating students on rents, accommodation in hotels, hospital stay, hostel accommodations, renting shopping complex, and, etc.