More than 40% of Americans are renters, and a quarter of them spend more than half their income on rent.
It leaves them little room for error when they get hit with large, unexpected expenses, like medical bills.
Domuso, a Santa Monica, Calif., startup, created a payment portal that provides renters with a line of credit that allows them to cover their late rent payments and repay the loan over six or 12 months.
Fees aren’t cheap, but they’re about in line with credit card interest rates and more accessible than bank credit, according to the company. (Tenants can get approved almost immediately based on a “soft” credit check, like past payment history.)
Renters can still use Domuso’s platform to make payments even if they don’t need a line of credit. (In May, 20% of Domuso’s 20,000 registered tenants were using the credit option.)
The company has raised $5.8 million from investors; its latest round was largely backed by large rental owners who use the platform to collect rent.