Tokenization of rental contracts

Blockchain technology has been a revolution in various sectors of the economy, including the real estate market.

There are protocols such as Nash21 that, using this technology, are redefining the rental market, transforming classic rental contracts into smart contracts. Rental contracts are tokenized in the form of NFTs, providing the contract with many advantages over non-smart contracts.

After carrying out a risk analysis with the data provided by the owner and the tenant, the NFT is created. The total amount of all the rents is guaranteed regardless of whether the tenant pays or not thanks to a guarantee fund.

The owner of the rental contract decides whether to collect the rent on a monthly basis as usual or whether to collect it daily, weekly or even in advance by auctioning the NFT, obtaining liquidity.

The world of decentralized finance also allows other uses for the NFT, such as using it as a means of payment or as collateral when applying for a loan.

The tokenization of rental contracts is already a reality. If you want more information, do not hesitate to consult with Metadao.