Broadway Station Apartments in Grove City will be the first residential development outside Columbus to partner with Rhove, a Columbus-based tech startup that offers matching deposits for renters’ savings accounts from their landlords.
Tenants of Broadway Station, which is managed by Haddon Communities, may download the Rhove app from the Apple App Store and Google Play and create a direct-deposit savings account.
The app has been available for a few months but only at a handful of Columbus apartment complexes, according to a list on rhove.com.
“When they pay their rent, Haddon Communities will provide a matching payment of up to 2.5% of their rent,” Rhove founder and CEO Calvin Cooper said. “So if I paid $1,000 in rent and contributed $25 each month to my savings account, representing 2.5% of my rent, the property owner would also kick in $25 monthly,” he said. “You’d have a yearly balance of $600 in your account, half coming from your contribution and half from the property owner.”
Cooper said his own experience paying rent led to the idea for Rhove.
“If you’re a millennial, you may end up spending $200,000 or more over time on rent,” he said. “That’s a whole lot of money.”
Rhove’s savings-account program could help young renters move toward a goal of owning their own home someday, with a boost from their landlord, Cooper said.
For the first two years they participate in the savings program, renters can unlock their full 2.5% match each time they renew their lease, he said.
“Every year after that, your full match will be available each month,” Cooper said.
The benefit for property owners is the Rhove program could help spur tenant loyalty and eliminate the costs and loss of revenue they incur when people move out of their properties, he said.
“They are avoiding the potential of losing months of rent payments and the turnover and marketing costs of getting the apartment ready for the next tenant,” Cooper said.
Rhove, which was launched in February, is available in seven properties in Columbus’ Short North and Franklinton neighborhoods, Cooper said.
Broadway Station, which is at 3443 Park St. in Grove City’s Town Center, has 120 units. Residents began moving into the apartments in April 2017.
Rent prices for one-bedroom apartments at Broadway Station start at $989, and two-bedroom units start at $1,399.
The first Rhove match at Broadway Station begins Aug. 1.
“Broadway Station is a good fit for us because it’s located in the kind of modern, walkable community that appeals so much to millennials,” Cooper said.
Broadway Station is “thrilled about our partnership with Rhove, which supports the financial futures of residents and makes living here even more rewarding,” Haddon Communities owner Steven Stieglitz said in a statement. “Rhove is a company that shares our mission to provide a top-notch living experience, and we look forward to having our community members derive immense value from the partnership.”
A renter living at one of properties partnering with Rhove does not have to sign up for the savings-account program, Cooper said.
The funds in Rhove’s savings accounts for renters are held by Evolve Bank & Trust, an FDIC member, in an account under Roost Enterprises Inc. (DBA Rhove).
Rhove sets a $5 minimum monthly deposit and a $500 maximum monthly deposit. Participants may cancel at any time.
Renters may withdraw money from their account up to six times per month. Each withdrawal must be $5 to $500.
More details are available at rhove.com.