- Requests for rent advances have quadrupled in the wake of the covid-19 crisis.
Barcelona, March 18, 2021 – Advancing advances in the diversification of its business and launches its own rental collection insurance for homeowners. This new service, called Advancing Month to Month, aims to protect the landlord by guaranteeing the collection of rents at the beginning of every month while eliminating the risk of non-payment by the tenant. In addition, the insurance offers coverage against other economic damages derived from incidents with the tenant such as unpaid utility bills, unpaid community fees or material damages to the contents and/or building caused by vandalism, among other protections.
This service joins the portfolio of products marketed by Advancing, along with service which provides a 1-year advance on rents. This product, also known as real estate factoring, consists of a 12-month advance on rents in a single payment that allows landlords to obtain immediate cash flow. Currently, more than 750 real estate agencies collaborate with Advancing in the marketing of this product, including franchises such as Remax, Alfa and Realty Plus.
“The launch of the rental collection insurance allows Advancing to move one step further in its mission: allowing landlords to rent their properties with security and receive their rents in the way that best suits their needs,” says Rafel Saurí, CEO of the start-up. Furthermore,” adds Saurí, “Advancing Mes a Mes is not only a policy to cover possible risks arising from the relationship with the tenant, but it is also a pre-authorization which enables the landlord to request an advance on the rent for the months that the policy is still in force at any time during the insurance period.”
The impact of covid-19
The economic crisis unleashed by the covid-19 pandemic has caused the solvency of many tenants to deteriorate. Specifically, according to FIM data, in November -the last month with available data- residential rental defaults reached 5.9%. This represents an increase of 68% over the values recorded in September (3.5%), although below the peak recorded in May (12.6%). Advancing – which is a start-up created by Mutter Ventures – aims to help landlords mitigate the impact of non-payments on their rents through its new service.