Homeownership and building wealth is the end-goal for many Americans. Today’s startup Up&Up is creating a new way to rent, giving renters an opportunity to build towards homeownership and savings.
⚾ The Elevator Pitch
Most Americans spend their first 15 years after college renting. This means they spend the majority of their disposable income on paying monthly rent - hundreds if not thousands of dollars each month never to be seen again.
Up&Up aims to change that by providing a new renting model that allows renters to build wealth over time – and even eventually buy the homes they’re renting from. With their model, renters have a stake in the home they rent, which means renters accumulate wealth when the real estate market appreciates or as their rental home generates income, which renters have direct control over by paying rent on time and keeping property expenses low.
Per U.S. census data, 34% of total U.S. households were rented in 2021. Of that 2/3rds were planning to move again within the next three years, with 48% intending to move to another rental. Yet all that money spent on rent over the years doesn’t go towards accumulating wealth or buying a home. Up&Up is providing an alternative model that helps renters accumulate wealth as they rent – while not increasing the cost of rent.
🌾 Large market and space
There are key booming housing markets across the US right now – Atlanta, St. Louis, Phoenix to list a few. At the same time, there is always a large pool of applicants looking to rent at any given time. Up&Up has a large market and consumer space to work with, and has taken advantage of the fact, purchasing homes in these key areas.
🏠 Rent-to-own
While Up&Up does not tether down its renters to buying their homes, they do provide the option to do so. At the end of their lease, renters have the option to convert the money they have accumulated into a down payment to purchase the home they are renting. And if that’s not the right fit, they can simply cash out and take their money elsewhere!
