TapHomes' "Rent-to-Own" Concept Allows Users to Rent Homes While Installing Down Payments

The low number of home ownership is one of the reasons why startup proptech TapHomes is here. To DailySocial, Victor Ramli Kwan as co-founder revealed, currently there are still many people who lose the opportunity to own a house. And he sees this as a problem that affects many people in Indonesia.

TapHomes applies the concept “rent-to-own” as a bridge to help customers get homes. That is, it allows users to pay rent while at the same time installments the process of buying a house at the same time.

Victor said, customer TapHomes most are new home owners who are unable to obtain traditional home mortgages; most of the issues are due to not being able to pay a down payment or to pay a mortgage deposit of at least 15-20% of the house price.

Through this application, prospective buyers only need to pay a 2% down payment, then TapHomes will buy the desired house. The customer will then start living in the house and pay the rent every month starting from 1,2 million Rupiah. The cost is allocated 70% for rent and 30% for home ownership savings.

Regarding the type of house, the TapHomes team will conduct an analysis according to the ability of potential buyers. Because it has been purchased, during the rental process the house can be modified or renovated according to the wishes of the residents.

The lease period is 3-5 years; and at the end of the lease, customers will have savings with a total value equivalent to 15% deposit funds for home purchases. They can continue to buy the house in cash or through a mortgage.

If at the end of the program the customer cannot continue with the plan to purchase a house, TapHomes and the customer will sell the house to a third party. The proceeds from the sale of the house will be divided according to the proportion of home ownership between TapHomes and customers.

"We make it easier for new families to buy their homes with affordable down payments and regular homeownership development, so that in the next 3 years our customers can apply for a mortgage at the bank," said Victor.

Develop technology

Currently, TapHomes claims to have processed more than 2 thousand prospective customer submissions. Later, a curation process will be carried out for customers who are entitled to receive services.

Regarding technology, TapHomes is developing an Automated Valuation Engine that makes it easier for the platform to evaluate the value of homes more efficiently.

There are several plans that TapHomes wants to achieve, including expanding to big cities in Indonesia. Currently, TapHomes' focus is still on the Jabodetabek area, especially in Bekasi, Tangerang, and Depok.

"We've got seed funding from a VC and previously operated with founder funding. TapHomes is also currently undergoing the Accelerator Program from SYNRGY by the BCA group within batch 3 and Plug & Play Accelerator inside batch 7," said Victor.