Zenbase has partnered with VIDA to offer a flexible rent payment option to over 2,000 households in Nova Scotia, New Brunswick and Manitoba. Zenbase continues to be the leader in flexible rent payments across Canada empowering residents to split their monthly rent into two, stress free payments while building their credit. This combination creates a powerful financial tool that supports the ESG initiatives of multifamily owners and operators like VIDA.
Hugh Goodday, VIDA’s Chief Growth Officer said: “Zenbase has an impressive model that is perfectly aligned with VIDA’s objective of enhancing our residents’ financial wellbeing. We have received a wave of positive feedback since launching the program. Flexible rent payments that enable easier budgeting and decreased financial stress on the 1st of the month? What’s not to like! Simple, convenient and responsible.”
Koray Can Oztekin, CEO and Founder of Zenbase, said: “VIDA is an industry leader in their commitment to improve the financial position of their residents. We’re proud to partner with them to help their communities better manage household expenses. They have embraced our solution to empower their residents to make budgeting easier with increased cash flow for other expenses between paychecks while never having to worry about paying their full rent on the 1st of the month.”
About Zenbase
Zenbase, a leader in flexible rent payments, is committed to economic inclusion that fosters financial empowerment for renters. Our solutions improve the financial wellness of renters while improving operational efficiency for property managers. Rent is usually due on the 1st of the month but that doesn’t align with most people’s bi-monthly pay cycle. We’ve fixed that misalignment and provide other financial tools to help level the playing field. Learn more: https://myzenbase.com/
About VIDAVIDA’s mission is to revolutionize affordable communities around the world by providing socially responsible rental housing founded on four pillars: safety & security, cleanliness, opportunity and community. VIDA’s residents enjoy dignified rental accommodation that they are proud to call “home” and that helps them get ahead in life. Learn more: https://www.vidaliving.ca
Canadians from coast to coast are falling in love with not having to pay their full rent on the 1st of the month. We call it RENT DAY BLISS!
We asked our members on Instagram why they ❤️ Zenbase and being able to split their single biggest monthly expense:
I love it because it takes away unnecessary stress. It helps you create and stick to a proper budget.
Megan D.
The communication and ease of paying rent at your convenience with customer support that gets back to you ASAP!
Cam T.
The relief of stress and having access to more of our paycheck to pay bills and get groceries. It’s truly taken a lot of stress away day to day.
Debora A.
Stress relief of not having to juggle so many competing financial needs at the beginning of each month. And the custom service!
Candice P.
Zenbase is awesome! I love it because it gives us the option to pay other bills and just makes life so much easier.
Layne L.
The ❤️ for flexible rent payments doesn’t end there. Here are some of our most recent Google Reviews:
Zenbase’s mission is to ensure that no one is ever behind on their rent payments or gets evicted. Our solution enables the affordability of the primary need of every person, housing, which is why we built a solution that offers the most flexible rent payments ever. We also offer other financial solutions that empower residents to better navigate financial challenges that life may throw at them.
Calgary, AB – Zenbase has partnered with Mainstreet Equity (TSX: MEQ) to offer flexible rent payment options to all residents across its over 16,500 units across British Columbia, Alberta, Manitoba, and Saskatchewan. Zenbase is a leading provider of flexible rent payments, and their personal budgeting tool allows residents to split their monthly rent into two payments. This allows Mainstreet to offer even more value to their residents while reducing residents’ financial stress.
Trina Cui, CFO of Mainstreet Equity said: “Zenbase has delivered an easy-to-use and convenient payment option that has proven to be valuable for our residents, helping to relieve financial pressures by splitting rent payments throughout the month. Our residents are important to us, so Mainstreet will continue to explore innovative means to support the communities we serve and improve the housing affordability experience for our residents.”
Koray Can Oztekin, CEO and Founder of Zenbase, said: “We collaborate with like-minded companies who want to improve the financial health of their residents by offering our powerful budgeting tool. Mainstreet has embraced our solution to empower their residents to make budgeting easier with increased cash flow for other expenses between paychecks while never having to worry about paying their full rent on the 1st of the month.”
About Zenbase
Zenbase, a leader in flexible rent payments, is committed to economic inclusion that fosters financial empowerment for renters. Our solutions improve the financial wellness of renters while improving operational efficiency for property managers. Rent is usually due on the 1st of the month but that doesn’t align with most people’s bi-monthly pay cycle. We’ve fixed that misalignment and provide other financial tools to help level the playing field. Learn more: https://myzenbase.com/
About Mainstreet
Mainstreet is publicly traded on the Toronto Stock Exchange (TSX: MEQ). As at Q4 2022, assets were valued at CDN $2.9B. Since going public, Mainstreet has continued to grow its assets organically; its double-digit compounded annual growth continues today. Current holdings consist of over 16,500 apartments across western Canada (BC, AB, SK, MB). Along with this healthy balance sheet success, Mainstreet is a proud champion of affordable housing. Learn more: https://www.mainst.biz
According to Equifax, more than 7 million Canadians may have 2 or less credit accounts on their credit file, meaning they are considered to have limited credit history or are classified as a “thin” credit file. Therefore renter payment history reporting presents a great opportunity for both operators and renters(particularly for students, young professionals and newcomers) to kickstart an individual’s financial profile and help them secure other credit opportunities while improving timely payments. According to the studies conducted by Equifax:
70% of the GenZ and Millenial renters state that rent reporting would be a key differentiator when choosing their rental home. 73% of renters are more likely to pay rent on time if property managers reported rent payments.
Equifax
During this high interest environment, rent payment reporting provides residents the opportunity to build credit and reduce cost of financing.
Zenbase is SOC 2 Type 2 certified and integrated with all the major property management systems so there is no heavy lifting needed by operational or technical teams.
It’s in the best interest of all residents to have their payments reported since unpaid balances owed can be reported without needing the consent from the resident. By partnering with Zenbase, you can incorporate rent reporting into your new lease workflow and also onboard existing residents.
If you have any questions around rent reporting how it works with your existing systems please let us know.
As the cost of living continues to rise, it’s important for households to have a budget in place to manage their expenses. One area where a lot of households are feeling the pinch is in their rent payments which increased by 12% nationwide in 2022.
According to the 2021 Census, almost 5 million households rented the home they lived in last year—up from 4.1 million a decade earlier, approximately 36% of the population in big cities are renting. Rent is a significant portion of most household budgets, often taking up a large chunk of monthly income. 1/3 of the renters are spending more than 30% of their income on rent and they are considered to be in core housing need.
How can households manage this rent burden and still stay within their budget? Since we are already 3.5M units short in the housing supply and renters are not moving anywhere it’s unlikely that moving to a more affordable home is an option. Luckily it is still possible to optimize for the rent payments while staying in the same residence and here are three tips:
In addition to the increasing ratio of renters, Canada is also expecting 500K newcomers in 2023 who will most likely rent which will likely increase rent prices further since only about 260K new units are built per year. This means that we will continue to need tips like above to optimize for rent payments and stay on top of household finances.
According to Financial Consumer Agency of Canada 48% of Canadians say they’ve lost sleep because of financial worries, distantly ahead of personal health, work or relationships. Among the money worries, the sources of financial stress are listed as:
44% of Canadians say it would be difficult to meet their financial obligations if their pay was late.
Financial Consumer Agency of Canada
Rent is the biggest line item in a household budget, accounting for 30% or more in total expenses for millions of households. We asked Zenbase members how financial stress is impacting their overall wellbeing and how they feel about flexibility around their rent payment schedule. The results are below:
Personal finances are, well, personal. When life happens people may not feel comfortable or be embarrassed to ask for a lifeline including asking for a delay in their rent payment or asking for an advance from an employer or a friend. Flexible rent payments are designed to make it easier to budget while providing the safety net for timely rent payments and avoiding financial stress. Here’s what one of our members had to say about that:
Zenbase has literally increased my lifespan. My stress level has been reduced ten fold because I now do not have to worry about rent and payments. These guys give great service and will change your life. I promise you that!
Claude Thorimbert – Zenbase Member
Our property management partners allow us to offer flexible rent payments to their communities and deliver rent day bliss on the 1st of the month, boosting their ESG initiatives. In the current inflationary environment, all households are squeezed with rising cost of household expenses. With flexible rent payments residents have an option to split their rent payments when needed to free up cash between paychecks and avoid reliance on credit cards and other debt products.
Calgary, AB – Zenbase, a leader in flexible rent payments, today announced that it has partnered with Laebon Rental Communities, a premiere rental company, to offer flexible rent payments to its nearly 1,000 luxury rental homes in Central Alberta.
Zenbase enables the most flexible rent payments for Canadians by allowing residents to split their rent into two stress free payments and improve their cash flow. Residents can also budget more easily and avoid late fees which improves overall satisfaction and retention.
Koray Can Oztekin, CEO and Founder of Zenbase, said: “Zenbase aims to build partnerships with like-minded property management companies who are committed to improving the financial health of their residents while striving to get paid on time. Laebon Rental Communities saw an opportunity to deliver rent day bliss with a new level of rent payment flexibility and a meaningful reduction in financial related stress through improved budgeting. We look forward to continuing to offer flexibility and peace of mind to more of Laebon’s residents every first of the month.”
Matthew Lavergne, General Manager of Laebon Rental Communities said: “Laebon Rental Communities is always looking to add value for our residents. We offer such amenities as free coffee stations in our lobbies, community gardens, fitness centres and now flexible rent payments. Our goal is to provide a quality of life that is unmatched anywhere else in Central Alberta. We are proud to partner with Zenbase to offer more financial freedom for our residents which we hope in turn will improve their quality and way of life.”
About Zenbase
Zenbase, a leader in flexible rent payments, is committed to economic inclusion that fosters financial empowerment for renters. Our solutions improve the financial wellness of renters while improving operational efficiency for property managers. Rent is usually due on the 1st of the month but that doesn’t align with most people’s bi-monthly pay cycle. We’ve fixed that misalignment and provide other financial tools to help level the playing field. Learn more: https://myzenbase.com/
About Laebon Rental Communities
Laebon Rental Communities (LRC) provides tenants with safe, affordable, and well-maintained rental buildings throughout Red Deer, Sylvan Lake, Lacombe, and Penhold. When renting with Laebon you know you are renting with a name you can trust. The Laebon name has been known for their high standards and their commitment to quality craftsmanship, design, and innovation in Central Alberta since 1976.
LRC is committed to providing residents with not only the best quality in housing but an enhanced level of community. Each Laebon Rental Community is essentially a community within its-self. LRC holds social events, creates interactions between residents and staff, and always provides open lines of communication.
LRC strives to provide Albertans with a high standard of living and a place they are proud to call home. Learn more: https://laebonrentalcommunities.com
Housing supply is at its lowest level and vacancies are at record low, 3% nationwide. When residents are spending up to 50% of their income on rent, there is a significant need to expand on the “S” (Social) in ESG with solutions that improve the financial health of rental communities.
ESG is the acronym for “Environmental, Social and Governance” that has become crucial for investment considerations globally. Multifamily developments that invest in sustainable features (Environment) and/or provide affordable housing (Social) are more likely to find options from capital sources looking to meet ESG targets. With the current housing policies, it’s extremely hard to invest in “S” by building affordable housing though luckily it is possible to help tackle affordability challenges by offering alternative solutions.
A Equifax report published last week said:
“Credit card balances rose to the highest level since the fourth quarter of 2019 and the average credit limit on new cards is over $5,800, the highest it has been in the last seven years.”
Bloomberg
To avoid racking up credit card debt, paying late fees and being stuck between paychecks households need more flexibility in paying their bills, starting with rent.
Almost 40% of the households are spending 30-50% of their income on rent leaving them with very little buffer between paychecks to manage household expenses as a whole. Such affordability issue is creating financial stress for residents from all income brackets who end up with two options: a) find a new home or b) deal with it.
Apart from the mental, social and economical challenges around changing homes, current trends make it extremely difficult to find a new home
When finding a new home is not a real option, residents can do nothing but just deal with their rent payments and affordability issues.
We, at Zenbase are not housing developers therefore cannot fix the housing supply shortage and avoid affordability issues. However we can partner with property managers, owner & operators to help residents navigate affordability issues by splitting their rent payments and giving them flexibility & control to manage their household expenses as a whole. We think it’s unfair that the biggest expense of the month needs to be paid on the 1st while it takes at least 14 days to receive all monthly earnings to cover that expense.
Flexible rent payments is an effective option in the toolkit of our partners to boost their “S” initiatives in ESG and help improve their residents’ financial health with flexible rent payments. Learn more here.
When we launched Zenbase, our first members were trying out the service simply for a rent day lifeline. These members would not always have the full rent amount in the bank until the last day of the month and end up paying late fees and overdrafts. As inflation soared we started seeing a different member profile with higher income who used Zenbase to better budget and smoothen out their cashflow throughout the month.
Before we illustrate how flexible rent payments help with budgeting for all household expenses let us share some quick stats about the Zenbase members:
In the current inflationary environment, core household expenses including rent, food and gas increased more than 10% and started squeezing all households regardless of their income. Households turned to debt to manage the additional financial burden and according to Equifax consumer debt increased by 9% since May 2021 and we are seeing a 10% increase in credit card balances.
More than 50% are living paycheck to paycheck from all income levels and now dealing with a greater gap between two paychecks. Here is an example:
Flexible rent payments align the timing of his payments with cash availability. After splitting his rent payment Bob keeps $1,275(365% more) to cover all other expenses until he receives his next paycheck. By splitting his rent payment he smoothens out his cashflow and better aligns his cash with the timing of his household expenses.
Those with 30% ‘rent to income’ coverage ratio are assumed to be in core housing need or rent burdened: as a general rule, a healthy household budget should remain below that ratio. Unfortunately more households are now spending more than 30% of their income on rent and struggling with affordability. The risks due to rent affordability impact the rest of the household finances leaving very little room to manage other bills or any unexpected expense.
Flexible rent payments creates such room in the household budget and automates budgeting which all residents can benefit from regardless of their income level. Jordyn has been a Zenbase member for the past 6 months:
“It’s super helpful being able to split payments up, especially with everything going up in cost lately! Zenbase is easy to use, friendly. It’s a quick help, would recommend to anyone!”
Jordyn – Zenbase Member
Trent is one of the property managers responsible for more than 2,000 units:
“Being able to offer residents flexible, low/no-cost options that will make it easier for them to stay on top of their most critical living expense is valuable at any time; but in a era of inflation, and the consequent rising costs of living, it becomes ever more valuable.”
Trent – Property Manager
Flexible rent payments is the designed to free up cash between paychecks and avoid reliance on credit card and other debt products. It gives the control of their household finances to the residents and helps them do the right thing financially.
Times are changing, and the ways we pay are no exception. Consumers are demanding — and being offered — flexible payment options across the board and the property management business, an industry that’s been historically slow to embrace technology, is being left behind. Coupled with our current economic climate, this presents an opportunity.
The world today is not the same place it was even two years ago. The pandemic has changed consumer preferences and for many of us, our fortunes as well. In May 2022, the inflation rate in Canada reached a 33-year high, at 7.7 per cent while wages have only grown by roughly three percent in the past year. Coupled with a rise in interest rates, consumers are paying more for everything. With day-to-day essentials, like food, gas, and rent becoming more costly it’s no surprise people are looking for ways to make their money last the whole month.
The current environment has resulted in solutions like “buy now, pay later” or BNPL payment plans that offer greater financial flexibility for consumers. And BNPL is being applied to the housing industry to manage rents, too — a Motley Fool survey suggests over half of renters would “probably” or “definitely” pay more for flexible payment options in a rental property. This move towards flexible payments, which allows consumers to split their rent up into smaller installments throughout the month, is part of a growing demand for enhanced services, including digital rent payments, according to a report from insurance company Entrata.
Flexible Payments to Support Improved Financial Health
Flexible payment options benefit both property owners and renters. Renters have the ability to break up their rent payment into smaller installments, while property owners can maintain more reliable collections and better renter retention. The financial wellbeing index from LifeWorks, released in October 2021, suggests that almost 30 per cent of Canadians live paycheck to paycheck, and roughly 26 per cent say they can’t come up with $2,000 in an emergency if they needed to. Giving renters a flexible solution to pay their rent, even if faced with a sudden financial emergency, can help them avoid late payment fees, which can add up to $150 a month on a $1,200 rent. It also helps renters avoid the financial stress of falling behind.
Avenue Living Communities + Zenbase: A Benefit for All Residents
For Avenue Living Communities (ALC), a partnership with Zenbase is just another way to enhance the resident experience and provide exceptional customer service. ALC is focused on providing top-quality management to its residents across the Prairies, and offering a flexible payment service has been a key differentiator. For a small fee, Avenue Living Communities residents can use Zenbase to split their rent into two payments, dividing their rent to match their pay schedule. Zenbase covers the monthly rent up-front, and residents have an extended window to pay it back in full and avoid the service fee. Zenbase also offers a $100 cash advance, to provide support with groceries or other expenses on months when budgets are tight. “Splitting your rent into two payments is awesome,” writes Diane in a Zenbase Google review. “You don’t feel stranded at the end of the month.”
A Win-Win
“Rent is due on the first” is one of the last, albeit stubborn, remnants of the past, and we may be seeing the beginning of its extinction. Avenue Living Communities, in partnering with Zenbase, is offering their residents flexibility, freedom of choice, and another way to take control of their finances. We all deserve options, whether we rent or own our homes, and flexible rent payment services like Zenbase provide property managers with the technology to make those options a reality.
Learn more about Zenbase, and how we can help property managers offer exceptional customer service.