Rentals without borders
This page uses Argentina as an example, where StellarRent will launch its MVP, but its solutions are designed to tackle global rental market challenges. StellarRent, a decentralized platform on the Stellar blockchain, addresses key issues like high costs, inflation, and lack of trust, offering a fair, accessible, and transparent system for landlords and tenants worldwide.
Key Rental Market Challenges
Landlords face significant hurdles in Argentina, many of which resonate globally:
Deposit Restrictions: Deposits limited to one month's rent are often insufficient to cover damages or non-payment, reducing financial security for landlords.
Costly Inflation Adjustments: With high inflation (around 211.4% in 2024), landlords must return deposits adjusted to the final month's rent value, impacting their liquidity.
Disputes and Unfair Deductions: Conflicts over damage deductions are common, leading to legal costs and time loss, with many deposit-related complaints reported.
High Commission Costs: Real estate agencies charge up to 5-10% of monthly rent, cutting into landlords’ net income.
Lack of Traceability: Manual deposit management, without clear tracking systems, increases dispute risks due to lack of transparency.
Key Challenges for Landlords
Challenge
Impact
Deposit Restrictions
Reduced financial security, risk of losses from damages.
Costly Inflation Adjustments
Must return more than received, affecting liquidity.
Disputes and Unfair Deductions
Legal costs and time spent resolving tenant conflicts.
High Commission Costs
Reduced net income, especially with real estate agencies.
Lack of Traceability
Higher dispute risk, difficulty proving deposit use.
Why Landlords Face the Biggest Challenges
High agency commissions erode their income, and lack of traceability heightens costly conflict risks.
High inflation turns deposit adjustments into a financial burden.
Tenants, meanwhile, face distrust in direct rentals due to unclear deposit return guarantees, a critical issue in high-inflation markets.
How StellarRent Solves These Challenges
StellarRent leverages the Stellar blockchain to deliver practical, globally scalable solutions:
Lower Costs: Eliminates intermediaries, charging only a 3% platform fee compared to 5-10% from agencies, maximizing income for landlords and tenants.
Stable Payments: Uses USDC, a dollar-backed stablecoin, to protect against inflation, with fast transactions (3-5 seconds) and minimal costs (~$0.00001 USD). This is crucial in Argentina, where inflation adjustments reached up to 178.68% in 2024.
Secure Deposits: Soroban-based smart escrows hold deposits until both parties confirm conditions (e.g., property condition), reducing disputes and ensuring fairness. In case of conflicts (e.g., damage claims or non-compliance), funds can be frozen, and the case is escalated to a partnered legal entity or arbitration service, following jurisdiction-specific clauses embedded in the contract.
Total Transparency: All agreements and payments are recorded on Stellar’s public ledger, ensuring traceability and eliminating fraud risks.
Inclusive Access: Compatible with digital wallets, it enables unbanked users to participate, ideal for Argentina and global markets with limited banking access.
Benefits for Landlords and Tenants
For Landlords:
Savings: Lower fees boost net income, surpassing agency charges of up to 10%.
Stability: USDC payments and deposits avoid inflation-driven losses, critical in Argentina.
Fewer Conflicts: Smart escrows and blockchain traceability reduce legal disputes, addressing complaints about unfair deductions.
For Tenants: StellarRent is ideal for those seeking direct rentals, especially international travelers. For example, someone arriving in Argentina can pay in USDC and secure their deposit in a smart escrow without needing a local bank account. This ensures a safe and transparent process, fostering trust in direct rentals, whether for short or long stays, in Argentina or globally.
Conclusion
StellarRent transforms the rental market by addressing high costs, inflation, disputes, and lack of trust. With low fees, stable USDC payments, secure escrows, and blockchain transparency, it offers a fair and accessible solution for landlords and tenants in Argentina and beyond, making it the future of global rentals.
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