The old rental deposit model has been a problem for years for both the tenant and the landlord: tenants were forced to freeze significant amounts of money, while landlords must solve complex, non-trivial risks. One Malaysian fintech startup founded by Mr. Earnest Wong has come up with a solution to this vacuum with a novel approach. BlueDuck Zero Deposit, launched in 2020, is the improved method of receiving rental deposits instead of large sums of money, based on insurance services for tenants and property owners. It has successfully revamped over 2,000 tenancies, making BlueDuck one of the fastest-growing fintechs in Malaysia during its initial years of operation.
The BlueDuck’s Zero Deposit is revolutionary in the market for rental real estate. Developed in partnership with Liberty Insurance Malaysia Berhad, this product was meant to offer a deposit for the tenants while protecting the landlords’ assets. BlueDuck thus assists landlords in getting relatively more tenants and occupying their houses with ease within a shorter time, hence enhancing their cash flow, while on the other side, the tenants do not pay a lump sum deposit but are required to pay insurance. The opportunity to access the amount usually locked-in rental deposits benefits all parties involved; the landlords are shielded and tenants become liquid.
In this feature, BlueDuck goes further to have a tenant profiling system that ensures landlords are matched with the best tenants. For example, by using CTOS, a credit reference agency, BlueDuck studies tenants’ payment behavior, current indebtedness, as well as credit worthiness. Such transparency provides the landlords with a higher degree of certainty when choosing potential tenants who have the best characteristics of a paymaster. Well over 4,200 users have availed of this tenant profiling process to ensure that landlords get only the best potential tenants who are willing to pay for quality tenancy, contributing positively to raising the standard of tenancy across Malaysia.
The new technologies implemented also apply in the commercial area with Smart Commercial Packages by BlueDuck. Firms are cash strapped because most of the cash is used to pay for rental deposits, renovation and utility expenses. Through the BlueDuck Zero Deposit option, the money can be freed up and used better elsewhere, such as to hire more people, buy new merchandise, or even expand campaigns and operations. This model shows that cash is critical to business development since it enables firms to alter how they invest their funds for improved results without affecting leases.
In today’s fast-paced digital era, modernisation is essential for businesses to stay competitive. BlueDuck’s insurtech solutions represent a modern and sustainable approach to asset management, providing a secure, efficient platform for landlords and tenants. By integrating technology into its offerings, BlueDuck not only enhances convenience but also ensures the security of transactions, making it easier for businesses and landlords to adopt this forward-thinking rental model. With its innovative solutions, BlueDuck is leading the way in transforming the rental market and setting new standards for property management in Malaysia.
