PayMyRent is a house rent loan service that was launched in February 2017. The app is a product of PayMyRent Nigeria, a startup that was founded by Damilare Ogunyemi in 2016.
Renting an apartment in Lagos is challenging for a number of reasons. This includes the scarcity of apartments, the high cost of renting the available ones and exorbitant agency, agreement and other tenancy fees. These high costs require adequate financial preparation, which can be made from saving before the rent is needed.
Saving in a predetermined frequency makes it easier to obtain a loan if the rent needs to be paid before the time when the lump sum would be realized. Paymyrent is only available to people in Lagos for now.
The app renders three major services to users. They are: saving towards a house rent payment; obtaining a loan for a rent that is due; finding apartments to rent.
Accessing the services through the app
To access any of the services, you have to create an account with the startup either through the web app or the mobile app. There is an android and iOS version of the app available on their respective stores.
I set up an account on the android app and verified my mail. As a first-timer, only two options on the menu were immediately available to me. They are select a saving plan and add bank card.
There are two savings plans. The first one is a periodic plan and it allows you to save a certain amount for a period that can not be less than 4 months. The mobile app took minutes to load, however, and I found it easier to use the web app instead.
The minimum amount you can save depends on the frequency of your savings plan. If you choose to save daily, the minimum you can save is N200, while it is N1,500 for a weekly plan and it is N5,000 for a monthly schedule.
The different options available make it possible for users to find the option that will work for them based on their earning capacity.
The fixed plan allows the user to set a target and work towards it with a deadline attached. Each savings plan attaches interest rates that vary with the amount and timeline.
I attempted to save N500,000 over a period of 6 months and found the interest rate to be 7.5%. At the end of my savings timeline, in addition to my rent, I would receive an interest of N37,500.
If you are saving towards rent and find that you need to make payment but have insufficient money, Paymyrent allows users to borrow money without demanding collateral. To obtain the loan, the property has to be sourced from Paymyrent’s site and processed through its agents.
The startup takes 50% of the rent from the tenant-to-be and pays the full amount upfront. The individual then balances the amount by paying back on a monthly basis.
The loan service is only available to workers in Lagos state. This sidelines people in other states but is understandable when the huge population and 3 million housing deficit in Lagos are considered. There is bound to be more demand for houses and a higher rate for house rents in Lagos state compared to other states.
Solving the problem?
By setting up a system that debits the user on an agreed-upon date, the discipline of saving is gradually impressed on the user. Therefore, it helps people to plan and prepare ahead for the house rent as well as learn to save towards projects.
Regarding ensuring that the app loads fast and is accessible when a user needs it, Paymyrent’s app performed poorly.
The buttons on the app that contain prompts like continue will do better if they show some sort of animated or loading icon response when they are clicked. This will help a user to know when the app is working on his/her request and refrain from clicking the button multiple times out of uncertainty.
From its three main services, Paymyrent is an option to check out if you want an app where you can save for rent and ask for loans as well.
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