Given the rising cost of housing, a growing percentage of the UK population has shifted towards renting in recent years (becoming known as ‘generation rent’).
In the past decade alone the number of young people between the age of 25-34-year-olds who are renting has risen to 46%.
As a result of these shifts, ‘Generation rent’ is creating opportunities for new services within the rental property sector that meets the needs of this burgeoning market. For example, high rents and the need for 6-8 week deposits creates a significant upfront outlay for renters. Innovative startups like Canopy effectively replaces the deposit with an insurance premium to help support these emerging segments.
Tenants increasingly expect a seamless onboarding experience when it comes to renting a house and in a highly competitive market, if a letting agent wants to stay ahead of the competition they need to ensure they continue to exceed their customer expectations.
Simultaneously, the property sector has been under increasing regulatory scrutiny due to changes arising from the 4th Money Laundering Directive as well as other legislation. Hence, the challenge that many letting agents face, is the need to improve customer experience when onboarding whilst ensuring they remain regulatory compliant
What do Canopy Offer?
Canopy helps renters and landlords work more effectively together. Canopy has created RentPassport™ to simplify the tenant application process and the management of ongoing tenancies by providing both residents and landlord with a secure and streamlined way of exchanging details.
The RentPassport™ solution generates a digital rental history that scores a tenants’ profile so that current and prospective landlords can see a tenant’s ability to pay rent and their overall reliability as a renter.
The Canopy service also reduces the administrative burden for tenant applicants and residents, allowing a shorter turnaround times for new contracts, renewals, and a faster return of their security deposit.
In short, Canopy has created a rental ecosystem which improves renting for all parties concerned – renters, landlords and letting agents.
What Did Canopy Need?
Canopy were looking to provide a streamlined onboarding experience that saved renters both time and money, whilst ensuring that property owners had a reliable level of security.
To ensure regulatory compliance, Canopy needed to carry out comprehensive due diligence checks on both renters and landlords, checking and storing multiple ID documents, credit and fraud checks.
This created a real challenge for Canopy who sought to ensure compliance but didn’t want to make their onboarding process too onerous for clients.
“NorthRow’s flexibility and ability to customise the data sets and risk scorecards to meet different use cases and challenges from the client are a great match; by leveraging technology, we’re improving operational efficiency and helping them to reduce fraud and ensure regulatory compliance.”
Richard Ingles, Head of Client Development, NorthRow
Canopy has partnered with NorthRow to fast track document verification and Right to Rent checks on both Renters and Landlords.
Real-time checks streamline the onboarding process whilst ensuring the highest compliance obligations are met and are carried out using the NorthRow API to verify clients eligibility to rent property in the UK.
For Landlords and Agents, this becomes a record of credibility which stays with the renter; evolving into a trusted reference portfolio as renters build their own rental history.
In summary, the NorthRow solution helps Canopy determine the ‘Right to Rent’ of potential clients with real-time checks on identity documents and secondary documents as required.
Canopy turned to NorthRow for an automated document verification solution to ensure that their renters were legally eligible to rent in the UK. They used the NorthRow “Right to Rent” solution to analyse, authenticate and retain candidates’ identity documents, and to confirm the individual’s “Right to Rent” in the UK. This has enabled Canopy to make crucial data-driven decisions, instantly, about whom they do business with and ensure they remain compliant with latest regulations.