No one wants to fall behind on rent, and being evicted for default would be a catastrophic event for the 40% of Americans who rent their homes. Presenting today as part of the Disrupt NY Battlefield, Domuso offers more flexible rental terms for tenants, while helping landlords and property managers collect rent more efficiently.
Up to 60% of Americans live paycheck to paycheck and lack the savings to face a serious illness or work stoppage. When these life events occur, tenants may find themselves unable to pay rent, which is usually the biggest expense they face.
Meanwhile, landlords don’t have the right tools to collect rent payments or deal with tenants who are falling behind. Many continue to collect paper checks and send out paper notices in the mail when rent is not paid on time. Worse, with little flexibility in the terms of most leases, eviction notices can be sent as soon as 10 days after the rent default.
Domuso provides a modern digital rental payment collection platform, allowing landlords to accept credit and debit card payments, ACH, and digitize paper checks. This means much faster payment processing for rent payments made on time.
But for times when tenants might fall behind, Domuso also provides installment loans that allow residents to pay over time and reduce the costs associated with eviction for both tenant and landlord. The finance option is also convenient for new tenants who might not have the initial cash to pay the first month’s rent, last month’s rent, and the security deposit at the same time.
CEO Damian Langere founded the company after spending years investing in real estate. Starting with a single property, he began acquiring and renting multi-unit residential properties and learned first-hand the challenges landlords face in collecting rent from tenants.
The company is targeting property managers who oversee more than 50,000 multi-family units in the U.S. It is specifically looking to list those who control portfolios of 50-500 properties and could better utilize large-scale digital payment and financing options. .
Since the platform was first released in beta, Domuso has signed more than 100 multi-family properties that use its platform. By the end of the year, Domuso hopes to have more than 500 multi-family properties listed, which would bring in more than $ 100 million in monthly payment processing volume.
Questions and answers
Q: Where are you in terms of launch?
A: We have 20,000 users on the platform.
Q: How was the reimbursement?
A: Building a reimbursement model takes time. At the end of this year, we should be profitable.
Q: How many users until you hit breakeven?
A: We think we could achieve profitability at 100,000 tenants. Everywhere you go in the world it is a pain point.
Q: Do you need tenants and owners?
A: We serve both, but the customers are the landlords who then make that available to their tenants.
Q: What percentage needs to pay late?
A: We have 4,000 payment users. Of the 20,000 cohort, 4,000 use the credit portion to make payments.
Q: How do you profile a person who loses their job?
A: We already know the tenant, we have their payment history. We know he intends to pay. It’s just a matter of giving him flexibility if he doesn’t have the money for a month.