BlueDuck Malaysia: Redefining Housing Access with Zero Deposits

There is a growing concern in Malaysia about the worsening issue of high rental prices. According to the Valuation and Property Service Department (JPPH), in Kuala Lumpur Section 1-100, 188 Suites secured higher monthly rental ranges between RM2,900 to RM3,700 (2021: RM2,900 per month) up by 14.0%.

In response to this growing challenge, BlueDuck Malaysia emerged as a beacon of innovation with a resolute mission to make renting accessible for all Malaysians. Their revolutionary approach, primarily through BlueDuck Zero Deposit Program (ZDP), aims to replace traditional cash security deposits with a more accessible and secure alternative, offering benefits to both tenants and the rental market by enhancing affordability, transparency, and financial security.

It's essential to address this challenge, especially considering that only 55% of B40 households own their homes, compared to 78% of M40 households and 89% of T20 households. This disparity underscores the critical need to make housing accessible for all.

A Game-Changer in Rental Convenience: ZERO Deposit

BlueDuck Malaysia's flagship offering, the Zero Deposit Program (ZDP), is a service that digitises and speeds up the rental process while offering financial inclusivity for all tenants. ZDP is the key to making renting more convenient for tenants as they no longer need to shell out a hefty deposit upfront when securing a property. Instead, they subscribe to ZDP for an annual fee, 80% cheaper and eliminating the traditional deposit requirement. This approach not only widens the pool of potential tenants but also significantly expedites the property occupancy process. It's a win-win solution for tenants and landlords, making the rental experience accessible and hassle-free.

Supplementing ZDP are BlueDuck's suite of services. The Tenant Profile utilises a vast database of records to streamline tenant selection, ensuring a perfect match between property requirements and tenant profiles. Quality tenants are screened through the BlueDuck Tenant Profile service and as a result have significantly reduced claimsOn the other hand, BlueDuck Pay, a direct debit system, simplifies rent collection, digitising on-time payments without tenants having to stress on manual transfer. This efficient system contributes to better landlord-tenant relationships.

From the perspective of landlords, the ZDP suite of solutions is offered at no cost, fostering improved tenant retention and ensuring a steady income stream. This eliminates the need for additional expenses associated with tenant acquisition, thereby contributing to an enhanced Net Operating Income (NOI) for the property. Moreover, in instances of outstanding rent, utilities, or damages, BlueDuck intervenes to shoulder these financial responsibilities, effectively reducing the overall financial risks for landlords. This comprehensive safety net is designed to instil peace of mind among property owners.

BlueDuck goes beyond replacing traditional rental deposits; it serves as a transformative force in the Malaysian rental landscape, reducing eviction rates, promoting tenant retention, and ensuring transparent practices through ZDP. This stabilisation positively impacts the housing market, benefiting both tenants and landlords. Moreover, BlueDuck's initiatives extend to fueling economic growth by boosting workforce participation, empowering tenants, and stimulating local spending. The enthusiastic investor response underscores the potential for a robust rental market, further fortifying Malaysia's economy.

Proud Partnership: BlueDuck and GAP

BlueDuck takes pride in its affiliation with the Global Accelerator Program (GAP), which has played a pivotal role in their journey to success. This strategic partnership has not only provided crucial financial support but also invaluable guidance and mentorship.

The GAP partnership has been nothing short of transformative, offering not just vital financial support but also priceless guidance and mentorship. It's more than just a program; it's a launchpad for innovation and progress.

Moreover, the partnership with Mranti has significantly expanded BlueDuck's horizons. By connecting BlueDuck with Government-Linked Companies (GLCs), which wield a profound influence due to their government backing, Mranti has unlocked a treasure trove of opportunities. Through mentorship and market access, BlueDuck has been empowered to reach more customers and create strategic collaborations spanning diverse sectors.

A Glimpse of the Future: BlueDuck in 5 Years

As the cost of home ownership rises due to increasing loan costs, BlueDuck Malaysia is gearing up to meet the changing housing landscape. With rising interest rates driving up property costs, rental rates have increased by more than 10% to 15% in recent months, indicating market dynamics.

Looking ahead, BlueDuck Malaysia has ambitious goals that align with their mission to transform the rental industry in Malaysia. They aim to replace up to RM500 million in rental deposits through their Zero Deposit Program within the next five years. This vision is underpinned by their commitment to making rental solutions more accessible and secure for all Malaysians. While on a mission to help tenants, BlueDuck is also exploring financing for tenants with impeccable track records for their 1st house in the coming product.

This article is provided by Elliot & Co.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.