Perhaps the way to visualize this might be to think of the fractional round up like putting money in a hedge fund/ETF. RNT invests in Bricklets on your behalf then pays you back the dividend after capping off a management fee. It's very profitable for RNT if done well, and very good for renters too because they get "in" on the property market. This meshes well with the bank relationship and credit relationship they have and finally the Bricklets relationship. If they really are doing this, I would agree that it would hurt the competition that isn't doing this, and changes the model to treating renters as a source of force. The ROI on investment services this would probably be more than what they'd make in fees from RentPay associated services (which forms a nice baseline for them, making this cream on the top). And they'd have enough "pull" with Bricklets to command decent returns. Nice win-win-win for all parties: Bricklets gets an "institutional" customer, RNT gets enhanced returns with other peoples money, and the renter enhances their return.
RNT Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
