MAIN IMAGE: Ndaedzo Madume, CEO of GraceNineteen
Staff Writer
Rental deposits can be a sore point between tenants and landlords, despite the guidelines provided by the Rental Housing Act (RHA). GraceNineteen seeks to improve this aspect of the rental experience with its Rental Deposit Investment Product.
Co-founder, Ndaedzo Madume, recently spoke to Alastair Anderson from Property Flash, saying that “GraceNineteen is poised to disrupt the residential rental property market in South Africa through the delivery of a platform combining financial products and critical tools for both landlords and tenants”.
Anderson reports that GraceNineteen first raised R1.6m with the help of their family members in 2021. The momentum has continued and in 2023, with R3.3m raised from angel investors including Property 24. The company’s first product is a deposit investment product, which was launched in May 2023.
What does the Rental Deposit Investment Product do?
According to GraceNinenteen, this product ensures that rental deposits are invested and managed as per the Rental Housing Act (RHA). All rental deposits with GraceNineteen are invested with Investec Bank.
Tenants are protected against no deposit refunds, delayed deposit refunds, inadequate interest earned on rental deposits, and unfair deductions on rental deposits. This product also helps tenants to start thinking of their rental deposits as part of their investment portfolio.
Landlords do not have to worry about the admin of opening and managing tenant’s rental deposit investment accounts as prescribed by the Rental Housing Act (RHA), as the Deposit Investment Product takes care of that.
What are the costs involved?
First off there here is a once-off onboarding fee of R100, which is to be paid upfront by the tenant. Secondly, there is a Rental Deposit Investment admin fee = 1.5% (exclusive of VAT) paid yearly by the tenant.
What documents are required to activate the Rental Deposit Investment Product?
Proof of identity – the documents do not need to be certified for South Africans citizens and can be uploaded as a picture. Foreign nationals do require certified documentation.
Proof of address – not older than 3 months. If it is a lease agreement, it should not be older than 1 year. Must be certified for foreign nationals.
