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Categories faq: Lease Rental Discounting Escrow

How does Escrow work for lease rental discounting?

When a tenant signs up for lease rental discounting, they will typically make a one-time payment to the discounting company. The discounting company will then deposit this payment into an Escrow account. The landlord will continue to receive rent payments from the tenant, but these payments will be sent to Escrow instead of the landlord. Once the discounting company has received all of the rent payments that are due, they will release the funds from Escrow to the landlord.

What is Escrow?

Escrow is a service that holds funds in vault until all parties involved in a transaction have agreed to the terms. In the case of lease rental discounting, Escrow is used to hold the tenant’s rent payments until the landlord has received payment from the discounting company.