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Property manager Quorum Holdings has announced it is testing and accepting rental deposits in the form of cryptocurrency from tenants.
The company announced on 17 August that it is testing the payment method with Forest Views, one of its latest developments in Bramley in Johannesburg.
“Our typical tenants are young professionals, who are familiar with crypto and may want to use theirs as a deposit instead of the standard deposit practice,” Group Legal of Quorum Holdings, Saul Mayers, said in a statement.
How will tenants pay rental deposits in cryptocurrency?
According to Mayers, tenants can secure their leases using Bitcoin or Ethereum.
Quorum Holdings will hold the deposits on the South African cryptocurrency exchange platform, Luno.
Tenants will deposit amounts directly into the company’s business account.
At the end of the lease, they will receive their cryptocurrency deposits back regardless of their value at the time.
“The risks associated with the price volatility of crypto are still there, but all gains are for the tenant when they leave the development, with the landlord being prepared to shoulder any possible losses,” Mayers explained.
Depending on the test’s success, Quorum Holdings will expand the payment method to other properties in Johannesburg and Cape Town.
The company expects its property portfolio to grow to include 3 000 residential units in Johannesburg over the medium term.
It also expects to add another 5 000 beds in student accommodation through its subsidiary, Urban Circle.
Featured image: Supplied/Quorum Holdings