RENTING PARTNERSHIPS

The Renting Cooperative™: A New Housing Model Created by Renting Partnerships

The Renting Cooperative™ model represents a revolutionary approach to housing—neither traditional ownership nor renting—that enables renters to gain financial equity without property ownership. Designed and developed by Renting Partnerships, the Renting Cooperative™ model is purpose-built to support low-income renters in building wealth by keeping their housing attractive, financially stable and permanently affordable.

A Third Way

Unlike conventional housing models, the Renting Cooperative™ allows renters to:

Manage Cooperatively: Residents build wealth by achieving efficiencies in the management of their housing. A three session orientation prepares prospective residents for new roles and responsibilities before they apply for apartment. Every household is a member of the resident association which has a policy making role involving the environment, maintenance and financial goals.
Earn Rental Equity: A schedule of financial credits in our lease looks much like the principal repayment for a loan. However, earnings are linked to fulfillment of measurable commitments each month to pay rent on time, attend monthly meetings and upkeep responsibilities. These actions produce savings on vacancy, turnover, administrative and maintenance expense worth up to $1,000 per year for each household.
Access Financial Stability: Credits become accessible after five years, providing residents with funds they can use toward rent, paying off debt, and other opportunities for growth.
Maintain Affordability: Because residents invest through participation rather than property ownership, their homes remain affordable for future renters.

The Legal Structure of the Renting Cooperative™

The legal framework not only maintains affordability but also provides a path to financial growth without requiring ownership—a structure entirely unique to the Renting Cooperative™ model.

Ownership in Trust: In a Renting Cooperative™, housing is owned by a nonprofit organization. This nonprofit holds the property in trust for the resident community, ensuring that affordability and cooperative management are preserved for future generations.
Earnings Through Participation, Not Ownership: Instead of individual ownership, residents gain financial credits through their participation in community management. This allows low-income renters to build financial equity when a traditional approach does not work.
Long-Term Affordability: With the Renting Cooperative™ legal structure, homes remain affordable permanently. Rents are adjusted only to cover operating expenses, so there’s no need for renters to bear the costs of profit-driven price increases.
Protection of Public and Charitable Investments: Investments from subsidies or grants are locked into the property permanently, guaranteeing that any development funds for affordable housing stay in the community rather than being tied to rising market rates.

Outcomes

Developed over 22 years, the Renting Cooperative model has shown that renters can create and capture value in ways beyond traditional leasing:

Long-Term Community Value: Renters add measurable value by providing reliable payments and keeping a safe, clean and attractive environment.
Self-Sustaining Affordability: Housing stays affordable as rents only rise to cover operating expenses.
Multiplier Effect: Public and charitable investments in affordable housing are multiplied by the residents contribution to sustaining property value and the wealth that is generated for current and future renters.

Closing the Wealth Gap

Founded in 2014, Renting Partnerships is a (501-c-3) nonprofit incorporated in Ohio. Renting Partnerships is excited to work with organizations and partners to scale this unique housing model. Together, we can redefine the role of renters in affordable housing and foster greater economic equity for communities everywhere.Expanding renting cooperatives will strengthen the economy by building wealth among households that don't own property. Rental equity can grow up to $10,000 in ten years and continue building. This is significant for overcoming racial economic inequities, particularly for black households. The net worth of black households in the U.S. is about 1/10th the net worth of white households. The median income of black households is $35,000 per year less than the median income of white households. Fewer build assets through ownership and home prices are rising faster than income. A new approach is necessary to create opportunities for all households who do not rent by choice.

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