Kuala Lumpur, 17 March 2021 - The Malaysian property rental industry has taken a large hit as a result of COVID-19. However, it must be noted that there has been a lack of technological innovation in past years, causing it to stagnate despite the advancement in cashless payments and contactless methods. To add, there is an estimated RM 3 billion in locked funds as a result of security deposits and additional initial rental payments required prior to moving in, according to a study by BlueDuck. Realizing this gap, BlueDuck was launched with the aim to make the rental experience more seamless and efficient, doing away with old and archaic methods through technology. BlueDuck achieves this through its Insurtech and Zero Deposit solutions, ensuring safety for landlords while saving thousands for tenants.
One of the long-standing issues that come with renting a new unit include the exorbitant initial fee. Traditionally, two and a half months worth of rental along with a deposit are required in order to move into a newly rented property. If for example, monthly rental costs RM 2,000, the amount of initial payment needed would be RM 7,000. Through BlueDuck’s Zero Deposit policy, a tenant would only need to pay RM 2,000 in advanced rental to move into the same unit. This is particularly important in today’s climate with the pandemic severely impacting the expendable income available to prospective tenants. Through BlueDuck, tenants will enjoy huge savings, unlocking funds for other purchases and in turn, spurring Malaysia’s economy. Not to mention, auto debit is also available to make automatic deduction an option for tenants should they go for the seamless payment option.
“The story of founding BlueDuck was inspired by my personal experience when I attempted to rent my first unit a while ago. While I managed to find a place for a reasonable price, it was not until later that I was aware of the additional costs incurred just to move in. On top of that, the process itself was very traditional, requiring ample paperwork. Fast forward to today and the process is largely unchanged, which sparked my interest in finding a solution, hence the birth of BlueDuck. Through our Insurtech and Zero Deposit solutions, we are truly hoping to make the lives of tenants and landlords much easier as we work with them and property agents to ensure faster and easier access of our solution, reaching a win-win solution for all parties,” added Earnest Wong, CEO of BlueDuck.
Besides tenants struggling to afford the initial fees associated with renting, the competition has undoubtedly heated up among landlords as the supply of units far outweighs the demand at the moment. Thus, a lower entry cost for property rental is one of the solutions that could encourage more tenants to commit to renting a unit. However, this may cause landlords to be more cautious as security deposits are waived, eliminating collateral in case a tenant defaults.
Understanding this, BlueDuck verifies tenants’ eligibility through first conducting a background CTOS screening, followed by e-tenancy agreement and e-stamping, eliminating the need for physical contact as more steps in the rental process are made contactless. BlueDuck takes this a step further, introducing BlueDuck Pay, a direct debit solution that turns monthly payments cashless. Together, these features allow for the whole rental process to be made digital, doing away with contact of any form and in turn, making renting safe in a time when efforts by other industries are being taken to curb the spread of the virus.
“The past few years have hit the property industry rather badly. Even before the pandemic arrived, the industry had seen a downturn. With landlords and tenants alike suffering, we were inspired to develop BlueDuck into the solution it is today, hoping to help as many people as possible. We are proud to say that we have more than 200 tenants across five states and have managed to save more than RM 600,000 for our customers. This level of growth in a short time is only made possible through our great relationship with property agents, as we’ve hit a new milestone of 2000 in our network from over 30 major property agencies. Through technology, we strive to constantly innovate and find new ways to make the rental process more efficient. In fact, we are currently working on ways to refine our Zero Deposit solution so stay tuned for that!” added Earnest Wong.
Moving forward, BlueDuck looks to continuously innovate and discover new ways to improve processes in the property industry, ensuring more tenants and landlords are able to make ends meet during these trying times. The fintech platform aims to elevate the rental experience as a whole through its solutions as it strives to drive technological innovation for years to come in this space. To find out more, please visit www.blueduck.my.
