How Relatefacts technology could save hundreds of billions dollars for worldwide rental market
The Illuminates platform will restore order in the real estate market, make it transparent and with secure transactions. Using Relatefacts technology, each user will be able to have access to real data, reviews about objects, sellers, buyers, owners and tenants. Moreover, the platform will massively simplify the decision making process of renting real estate for sellers and buyers, they will be able to directly make transactions on mutually beneficial conditions. In turn, it will help to reduce the number of intermediaries, and the commissions for their services.
How to solve real estate problems with Illuminates
We can view at simple examples and the main problems associated with rental housing, which the Relatefacts technology and Illuminates platform as one of a platforms its using can be solved.
Problem 1. Reliability of facts: Jim wants to spend his vacation in another city and plans to rent an apartment. He finds an sticker, explores house characteristics and the provided photos. Jim has a positive initial impression of the apartment and he agrees with the landlord to rent a house. Upon arrival, it turns out that the conditions of the apartment are not relevant to its sticker description. Jim is upset because as minimum he will live there wish each day bad mood and disappointment, as much he know that money was paid for nothing.
Solution: The idea of the platform is to provide true information to users about all the objects and participants of the system. By working through Relatefacts it’s not possible to falsify data, correct reviews, or provide fake information. Users value their reputation and misleading others is not reasonable. After registering on the Illuminates platform and confirming his identity, Jim can view the housing base, read reviews from other guests, learn more about apartment/land owner and know for sure that the information is true.
Problem 2. Intermediaries. Everyone knows intermediaries take a considerable commission for linking the buyer and seller. Jim decides to rent a house for permanent residence, but is faced with the problem that all proposals for housing are somehow connected with realtors. Jim is not ready to pay a high commission. What is the solution in this situation?
Solution: The goal for Relatefacts and Illuminates team for second main task is to save users from intermediaries in rental matters. If Jim is registered in the system, he will not have a need to deal with realtors in the process of finding housing. The platform does not take commissions for transactions, unlike realtors, so Jim will be able to directly negotiate with landlords of real best match properties without intermediaries.
Problem 3. Fraud: Karl decided to rent an apartment, and choosing the right option, he makes a deal. Under the terms of the contract, Karl should to make an initial deposit as a prepayment. Karl fulfills his obligations, transfers the required amount of prepayment, but the landlord abruptly disappears. Karl realizes that he was caught by scammers, whereafter lengthy processes of proceedings take place, during which it becomes clear that he is not the only victim. Thus, this seller has already deceived several potential residents.
Solution: In the case of Karl, if he transferred the prepayment through the platform, this amount would be “frozen” until the landlord had fulfilled his obligations. Any transactions on the Illuminates platform occur only after confirmation of the fulfillment of the previous conditions in the smart contract. Thus, users like Karl are protected from fraud by real estate landlords Relatefacts KYC.
It should be noted that not only landlords, but also tenants are faced with issues of rental housing.
Problem 4. Unscrupulous roomers: Bob decides to pass his apartment for rent. Using realtor services, he finds a tenant and concludes a lease agreement. During three months period Bob receives delayed housing fees and receives regular complaints from his neighbors about the roomer. In the result, Bob decides to evict the tenant. After the eviction, Bob discovers that the furniture and appliances in his apartment are spoiled. Bob calculates losses, as the guest does not want to compensate for them.
Solution: Each case of fraud and misconduct is recorded in the user profile of the Relatefacts system and on the deal smart contracts. It is impossible to change this information, therefore, each participant must take care of his reputation in advance. Thus, selecting tenants, Bob will be able to explore their reputation and, in the case of a large number of negative reviews, not conclude a contractual relationship with them.
Problem 5. False reviews: David rents out an apartment. After a while, a false negative review from tenants appears on the site, who claim that the conditions in the apartment do not match the information provided by David. A low evaluation affects the overall ranking of the landlord. How to act in this situation?
Solution: On the Illuminates platform, each user has the opportunity to dispute negative reviews by attracting the Relatefacts Oracle. The role of the Oracle is played by an independent expert who analyzes the controversial issue and makes a decision. Oracle services are paid by the losing side. Thus, David will be able to understand this situation due to the expert’s assessment. The Oracle is explores the case, concludes that this review is unreasonable, which means that its assessment will not be taken into account in the David’s total rating. Also, the time spent by the Oracle will be paid by the user who left a false review.
How the real estate rental process is implemented
Tom is the owner of the property. At some point, Tom decides to put the houses out for rent through an ad on the Illuminates platform. What does he need to do?
- Sign up on the Illuminates platform.
2. Verify your identity through KYC.
3. After that, Tom needs to prove ownership of the property. Therefor, created a special smart contract , which identify the property object, owner information, copies of the main documents are downloaded with an additional file.
4. Create a smart rental contract. In this document, Tom enters data on the house, the tenant, notes the сonditions of deal.
5.The system registers the formal contract and further relations between Tom and the guest are held in electronic form. The guest sends the money to a smart contract, confirms the fact of arrival and Tom receives payment. All information about the transaction is open and accessible, and any data and results cannot be faked.
Illuminates platform benefits
According to the Savills World Research report, the value of the global real estate market is $ 228 trillion. According to the most conservative estimates, 20% of all real estate is rent out . The total cost of the global housing rental market is $ 45.6 trillion dollars. On average, real estate is rented once a year and 50% of the rental amount falls on the payment of fees to realtors, agents and other third man.
Realtors’ total revenue is $ 1.9 trillion dollars per year. Thus, if Relatefacts will cover 1% of the real estate rental market for decision-making, in total it will be possible to save about $ 19 billion dollars a year only on real estate deals third parties commissions.
By using the same logic will be solved issues on other markets such as Vessel, Car, Equipment, Hardware etc.
Wold numbers of saves by 1% adoption of Relatefacts technology for rental deals is about 0.5 trillion US dollars. It means that if we will be able to reduce these spending on 90% it means that grace Relatefacts world economy will save 450 billion dollars yearly. Not talking even about parties relation comfort and time savings.
