“Startup Robs Every Customer They Have for Thousands of Dollars Overnight”

The amount the resident pays the startup reflects their portion of a rent plus a monthly premium referred to as a ‘service fee’ (usually between 5-10% more than their portion of the rent). Their rent protection and roommate finding services are outlined in a service agreement between the resident and the startup. TL:DR Last week a roommate finding and rent protection based startup company went under and proceeded to take money from their customers deposits to pay off their VC, violating their service agreement and firing their entire staff.

Source: www.reddit.com