In Los Angeles, a typical consumer needs a salary of $123,156 in order to purchase a new home, according to a report by the site HowMuch.
That's a big number compared to the rest of the country. The top 50 markets range from Pittsburgh at $37,659, to a whopping $254,835 in San Jose. Middle of the road markets like Dallas and Chicago are around $65,000.
Now, imagine that consumer has an amazing career opportunity in Los Angeles. How does this person move there and afford to get started? Buying a house might come later, but how to even afford to rent?
Tony Diamond, founder of StayTony, is offering the first ever short-term housing with a platform to finance rent. Something he notes that Airbnb has been trying to do for ages but can't because so many of their rentals aren't compliant with regulations that govern landlords.
The platform launches today, with technology from the AI-driven vacation travel finance system Uplift, at StayTony properties in Los Angeles. He has plans to expand to its properties in Atlanta as well. Below is a short video that runs through the platform.
StayTony was launched in 2012 as a short term corporate housing provider with upscale design, high-end customer service, and affordability. Diamond claims that StayTony's rent comps in the markets it is in are usually lower, and StayTony provides more services and amenities. The company currently has locations in Midtown Atlanta, Beverly Hills, West Hollywood, and multiple locations in Hollywood.
Diamond makes the program feasible by using a hotel management model instead of a typical multifamily owner/property manager business structure, which allows both parties a much larger share of profits.
"One of the biggest pain points for moving to a new city is the huge up-front cost," Diamond said. "With our new platform and interest rates as low as 10%, StayTony renters will only need the down payment of $237 to move in followed by 11 monthly payments of that amount, which would cover the cost of a one month stay at our lowest priced apartment ($2,580 per month). Other options, including interest-free financing for six months, are also available for qualified renters. The other big pain point is that renting is typically a clunky process filled with friction at every step. Our new platform is seamless and intelligent, you simply contact and sign the lease."
Tenants will be able to finance rentals of one to three months, without interest for the first six months and with no security deposit and only a soft credit pull.
With this system, renters no longer have to settle for the unknown quality of online platform hosts, where each landlord dictates different terms; pay the high expense of renting a hotel long term; settle for a traditional corporate apartment that lacks the designer touch; or resort to sharing personal space to make moving to a new city affordable.
Recent college graduates moving to a new city for a job, entrepreneurs who want the flexibility and fluidity of working in multiple cities, traveling medical or business professionals and more all now have an option in L.A. that is affordable, convenient, and of the quality they desire.
The technology platform is proprietary and will only be offered with StayTony properties, Diamond said.
This story appears as it was originally published on our sister site, www.hiveforhousing.com.