A New York housing startup recently expanded to Charlotte, and it's looking to make a big imprint here for renters.
Up&Up, founded in 2018, is a housing company that uses an online platform to transform its customers into investors of homes they rent. It was created to help renters grow their money, especially for those that are typically excluded from opportunities to build wealth. Different from the traditional landlord setup, the startup enables renters to earn a stake of the profits and value appreciation of their homes.
"If the home rises in value, so does the renter’s wealth," Up&Up said in a news release. "When the renter is ready to move on, they can use the money they’ve made to buy the home, or take that money and do whatever they want with it."
To help address Charlotte's housing-supply challenges, Up&Up plans to partner with local and regional builders to construct 300 homes here over the next year that can be rented through its platform. Those properties will be spread across the local metropolitan area, in cities such as Gastonia, Salisbury, Statesville and Kannapolis.
Needham Hurst, chief operating officer at Up&Up, told CBJ the startup has already partnered with four local homebuilders, with more plans in the pipeline. He did not name specific builders.
"Charlotte needs more housing. It's deeply undersupplied," Hurst said. "As Charlotte has boomed ... the prices are going up, rents are going up. So, how do we build more in Charlotte? We're partnering with as many local builders that have interesting projects."
Here's how Up&Up's model works: Instead of paying a security deposit, renters will make a contribution to build their "Up&Up wallet." Every month the wallet can grow through rental profits generated by keeping property expenses low, adding additional contributions and increases in the home's value. At the end of a tenant's lease, they can use the money for a downpayment to buy the home they're renting, for another rental or deposit the funds into their account for personal use.
To qualify to rent with Up&Up, Charlotte applicants must have a minimum credit score of 620, make three times the rent in household income and be willing to contribute two months of rent for the initial payment to their Up&Up wallets.
Brooklyn-based Up&Up said it is providing this concept as a solution to those who are experiencing challenges with record-high mortgage interest rates across the industry. Hurst said one of the reasons the company chose Charlotte for its next market is because it anticipates home values will rise as the city continues to boom.
He said the company's homes typically range from $1,600 to $2,000 in monthly rent. It currently has five homes available for pre-application in the Charlotte market on its website: three in Statesville, one in Shelby and another in Cherryville. Each home falls within that price range.
Charlotte marks the startup's fourth launch city where it has launched. It is also available in St. Louis, Indianapolis and Atlanta. Up&Up expects to expand to several more markets over the next year.
The company said it has a sharp focus on providing renters with greater access to homes, while allowing them to reap the benefits of homeownership. Hurst said the startup is working to build a team in Charlotte to help fulfill that mission.
"We're trying to meet as many builders as possible and developers as possible — folks who are looking to develop housing across the metro in suburbs outside of Charlotte," he said. "I think the most important thing for me and for us is that we want to be working with builders to build quality housing across the region."
