Has anyone ever come across Trustbonds before? (basically a commercial bond offering where tenant doesn't fork out the entire bond upfront). I didn't know they were available in Australia until I came across this article https://www.propertyobserver.com.au/forward-planning/119-trustbond-the-end-of-the-cash-rental-bond/75337-costly-rental-bond-outlay-foregone-in-fintech-trustbond-revolution.html Its an Australian clone of Rhino bonds http://www.businessinsider.com/kairos-ventures-rhino-lowers-millennial-housing-costs-2018-2 Which got a lot of Cnbc/Bloomberg press when launched.
Sounds very sketchy ... it's a surety bond. Their website is very light on details (I like things in writing, I'm not watching a youtube video!) 1. "Our automated eligibility process is based on your online reputation. Through this we make an assessment that if you are a good online citizen, you will also be a trustworthy tenant." What the heck is a good online citizen??? What do they assess - photos of your dinner? Your opinion on current affairs? Canteen duty? Bullying? 2. "What happens if there is a claim? If there is a claim, we pay the landlord. If there was bad faith or intentional acts, then there may be recovery from a tenant. But we fully cover any accidents or financial hardship, unlike cash bonds today. If you have a claim from bad faith, your TrustScore may go down and you might not be eligible for another Trustbond." So there "may be recovery from a tenant" ... whose job is it to do the recovery?? What is the definition of accident or financial hardship?
