London Real Estate Startups Canopy and Fronted Partner to Launch Lifetime Deposit

Canopy, the real estate eco-system whose mission is to make life easier for renters, landlords and agents, has signed a deal with Fronted, the London-based companies announced Thursday (April 14).

The partnership, launched to make life easier for renters, will allow tenants to transfer their deposit from one property to another, providing a solution to one of the biggest challenges leaseholders’ face.

Prior to their collaboration, renters were required to provide a new deposit before they could get a refund of their previous one. Typically, this amounts to 1,228 pounds ($1,611) for a five-week deposit.

Fronted’s lifetime deposit allows renters to transfer their surety from one landlord to the next. At the same time, the estate agent or landlord are not required to adjust their workflows, making the process much more seamless, the company said.

To qualify, tenants must deposit the security deposit in one of three protection arrangements. Once Fronted confirms the deposit, the company pays the new landlord or agent on behalf of the tenant. The previous deposit, after any deductions, is returned to Fronted to cover the new deposit.

This offering joins Fronted’s Deposit Loan on Canopy’s platform. It was developed to solve the problem of gathering funds for a renter’s first deposit.

This week, PYMNTS reported managing apartments is a full-time job with screening tenants, collecting rent and handling maintenance requests 24/7.

See also: Independent Landlords Adopt Technology to Streamline Property Management

Many landlords are juggling property management with their other full-time job.

“For them to be able to automate a lot of the manual tasks in a way that still gives them all of the oversight … is really important for them,” RentRedi Founder, CEO and Chief Technology Officer Ryan Barone told PYMNTS.