Breaking a lease can cost renters serious cash and cause a hassle for property managers or landlords.
Flip is out to save both parties the headaches. The app hosts a marketplace where renters can buy and sell rental leases.
Sebastian Delmont, co-founder of StreetEasy, a New York City-focused listing portal owned by Zillow, has dubbed Flip an “entirely new kind of product and service for renters,” according to a testimonial posted on leaseflip.co, the startup’s website.
Flip prequalifies renters who join its network by requiring them to provide answers to a series of questions along with proof of employment, income, a credit report and application fee of $50.
Renters who pass muster can then peruse leases posted for sale by people seeking to move.
Leaseholders who connect with renters through the platform can forward a renter’s “package,” which is generated by Flip, to their landlord or property manager for review.
Flip takes a back seat in the transaction after that.
The landlord or property manager can reject a lease transfer proposed by a tenant using Flip. But if they choose to go along with a transfer, they can reassign the existing lease to the new renter or have the new renter sign an entirely new lease.
Renters must sign into Flip though Facebook so that the startup can verify that a renter is who they say they are and is not a real estate professional, some of whom might use the marketplace to hunt for leads.