South African real estate company Quorum Holdings accepts Bitcoin for rental deposits, with profits going to tenants and losses to landlords.
South African real estate company Quorum Holdings, which focuses on affordable housing and student accommodation markets, has started accepting cryptocurrency for rental deposits. Tenants can now use Bitcoin or Ethereum to pay their deposits, which will be held in Quorum Holdings' account. Upon the tenant's move-out, the deposit will be returned, and all profits belong to the tenant, while the landlord will bear any potential losses.
Table of Contents
Quorum Holdings stated that this move would allow tenants to benefit from their cryptocurrency deposits. Tenants' cryptocurrency deposits will be held in an account at Luno, South Africa's largest cryptocurrency exchange, managed by Quorum Holdings, with the deposit being equivalent to one month's rent paid in local currency.
If this trial is successful, Quorum Holdings plans to expand this payment option to other properties in Johannesburg and Cape Town.
The legal department of Quorum Holdings mentioned that this choice of cryptocurrency deposit for rentals represents innovative use of cryptocurrency and a new way of doing business. Since Quorum Holdings' tenants are mostly young professionals familiar with cryptocurrency, they may want to store their deposits in a different way.
Quorum Holdings is exploring this new operational method because they believe that cryptocurrency will become mainstream. With a comprehensive regulatory framework established in South Africa, the cryptocurrency market is expected to further develop.
This article is authorized for republication from Horizon News Network