Quorum Holdings, a property company in South Africa, is piloting rent deposit payments in crypto for a new residential property up in Johannesburg.
The company, which owns and manages a broad range of commercial and residential properties, has tenants who are typically young professionals who may be interested in using their crypto to make payments rather than cash or cheque.
In the arrangement, tenants will be able to pay deposits from their accounts to Quorum Holdings account on Luno, a leading cryptocurrency exchange in South Africa.
The platform will accept bitcoin and ether, and according to Saul Mayers, Quorum Holdings Head of Legal, all gains are for the tenant when they leave the development, with the landlord being prepared to shoulder any possible losses.
Speaking about this move, Marius Reitz, General Manager, Luno, Africa, said:
“Bitcoin was developed as a medium of exchange. As cryptocurrencies become more mainstream, we expect to see increased adoption. Quorum Holdings offering tenants the option to pay their rental deposits in crypto will benefit the tenant.”
– General Manager, Luno Exchange, Africa
As cryptocurrencies become more mainstream, Quorum Holdings says its providing this mode of payment to benefit its tenants, as well as the opportunity for the company to improve existing assets, while also developing high yield assets in niche market areas.
The new development that users can pay for, Forest Views, is a residential building offering 2-bedroom apartments with amenities such as WiFi, pools, and gyms.
Depending on the success of the pilot, the service will expand to other properties in both Jo’burg and Cape Town.