QuintoAndar, which translates from Portuguese to English as “Fifth Floor”, is an end-to-end solution for long-term rentals with the goal to provide a seamless experience for tenants that removes the need for a guarantor, large security deposit, or rental insurance while also providing landlords the best liquidity in the market and fully guaranteed rent.
A marketplace that lets users search, book, rent, and advertise rental properties in Brazil. The site manages listings and visits, as well as transaction processing between tenants and landlords, and houses the digital contracts that bind these agreements. QuintoAndar also developed a credit analysis system that negates the need for co-signers, deposits, and rental insurance — barriers that have historically blocked deal flow in this industry.
Long-term rentals in big cities like São Paulo and Rio de Janeiro are throttled by bureaucratic policies that enforce expensive deposits, co-signer requirements, and skyscraper-high insurance fees with a terrible customer service experience for tenants, along with wasted hours of apartment hunting.
Gabriel Braga (CEO) and André Penha (CTO), came up with the idea for QuintoAndar after getting their MBAs at Stanford University. As many startups do, the company was founded out of Braga’s personal nightmare of experience in renting an apartment in Sao Paulo.
The search process was difficult as there was not enough information available online and renters are forced to provide a guarantor, or co-signer, from the same city or pay rent insurance. Overall, it was a very inefficient and fragmented process with no transparency or technology creating high friction and high cost involved, just real tangible problems to solve.
André Penha suffered from the other side of the story. His apartment in Campinas was stranded for months, in the hands of a traditional real estate company. When he took charge of the process, he managed to rent the property in two weeks.
When an owner advertises on QuintoAndar, the company sends a professional photographer to the property to create an ad. Potential tenants use the website or app to make an appointment at the desired time. Visits are accompanied by brokers affiliated to CRECI (Regional Council of Realtors). After the visit, the potential tenant and the property owner negotiate directly through the application; when the negotiation is closed, the company conducts the tenant's credit analysis and, if the credit is approved, the parties receive a digital contract for signature.
The company manages the lease for the entire term of the contract and, in the end, insurance of R$ 50.000 () protects the property against possible damages caused by the tenant. The company has a payment mechanism that ensures that the owner receives the rent, even in case of delay or default by the tenant.
QuintoAndar pays all the fees that the insurer charges and the owner remains insured throughout the lease.
The difference with traditional insurance is that the startup pays the insurance premium - that is, the amount that the tenant would pay if they contracted it directly. The policy is issued by BNP Paribas Cardif and serves as a lease guarantee pursuant to article 37-III of the Tenancy Law.
QuintoAndar keeps insurance active while the tenant is living in the property and while managing the lease. The insurance covers rent, condominium, property tax, water, electricity, and piped gas up to an amount equivalent to 30 times the monthly rent.
Although Quinto Andar's main USP is to use technology to simplify processes and create new business opportunities, Braga intends to strengthen ties with real estate companies. One of the goals is to offer the platform and benefits of startup automation to them, to serve customers who do not yet want - or fail to - follow the digital wave.
“Netflix studies its data on what people see. Based on that, he created his own original content. We did the same with information about what people rent or not ”, says Marcus Andrade the new director of Originals, a project to carry out efficient real estate reforms on its platform. Owners rent their properties faster, while residents see more quality in properties registered at QuintoAndar.
There are two ways for real estate to participate in Originals: either they are already in QuintoAndar's standard and are automatically certified, or they accept the reforms suggested by the startup.
Changes can be basic, intermediate, or ideal. All are based on the rental history and preferences of QuintoAndar users and prioritize only renovations that enhance the property and speed up your rental, without putting the whole house down.
In the basic reform, the objective is to review floors, paintings, and electrical and hydraulic repairs and include mirrors and shower cubicles in the bathrooms, for example. In the intermediate reform, the materials used are of higher quality and there is the installation of household appliances. Finally, the ideal renovation includes all the furniture in the apartment or house.
Rua Girassol 555, São Paulo - São Paulo, 05433, Brazil
This is Beta! Help us out. Please share it out and give some feedback.