Renovation Escrow: Builders Get Paid. Homeowners Stay Protected.
Less Risk. More Trust. For Everyone.
Paying for a renovation is often more stressful than the renovation itself.
Homeowners don't mind paying. They want to pay safely. Without worry.
When renovation projects break down, it's rarely because the work can't be done. It's usually because of poor communication and uncertainty around payment and deliverables expectations.
When do I get paid? How do I get paid?
In this article, we explain:
- What escrow is
- Budget transparency
- Working with milestones
- Releasing payment
- What happens in disputes
No legal jargon. No financial complexity. Just a simple and fair way to pay for renovations.
What is 'Escrow'?
Escrow is a secure, neutral account where your client's project budget stays until the work is completed.
Renno's escrow runs on regulated payment infrastructure, overseen by Dutch financial supervision (DNB).
Clear Milestones
The money that is reserved for the project gets paid out in milestones.
Instead of one large payment at the end, the project is divided into clear milestones.
Each milestone represents real progress. That keeps expectations aligned and avoids vague updates like "almost done."
Why this matters:
- Homeowners know the funds won't disappear.
- Builders know the money actually exists.
- Both sides follow an agreed roadmap where payment follows performance.
No one has to "trust blindly." Trust is built right into the process.
Releasing Payment: Simple. Structured. Fair.
Escrow turns "Will I get paid?" into "When we hit the milestone, we get paid."
It's not "trust me." It's a contract-driven release mechanism.
This creates balance:
- Contractors are paid for completed work
- Homeowners only pay for work that's completed as planned
No chasing invoices. No holding payments "just in case."
Payment becomes a process. Not a negotiation.
The proof is in the milestones. The proof is in the work.
Real-world Scenarios
Traditional Way vs The Renno Way
| Traditional Way | The Renno Way | |
|---|---|---|
| Risk level | High risk for both parties | Safe, low-risk transaction |
| How it starts | Homeowner pays a 40% deposit, trusting work will start "next week" | Homeowner funds the project in Renno. No money goes out until the first milestone is completed and approved. |
| What happens next | Weeks later, the builder is on another job, replies get slower, tension creeps in | Both sides see the plan, the milestones, and how much budget is left |
| Visibility | The builder says materials are ordered. The homeowner isn't sure. No one knows where the money went. | Payment follows progress. Expectations are clear in the system, not just in WhatsApp. |
| Result | Trust starts to crack. | Less chasing. Less arguing. More building. |
Do's & Don'ts
In Short
Escrow keeps renovation payments funded, fair, and predictable from day one. Trust is built into the process.
For builders
- Funds are secured upfront (no "we'll pay later")
- Payments follow completed milestones (progress = payout)
- No chasing, no unpaid final invoices
- Cash flow follows the work
- Fewer non-paying clients, fewer unreliable counterparties
For homeowners
- Money isn't released too early
- Payments only happen after milestone approval
- More visibility before you release funds
- Fewer surprises, fewer disputes
- Issues are handled through structured feedback, not arguments
Renno exists to make renovation payments safe and predictable. For both sides. All the way through.
FAQs for Builders
Do I still get a deposit?
Traditionally: You ask for a deposit and hope it arrives on time.
The Renno Way: Set the first milestone as mobilization / planning / ordering. Once approved its paid from secured funds.
What if the homeowner doesn't respond?
Traditionally: You wait, chase, and cashflow suffers.
The Renno Way: The homeowner has 7 days to approve or request changes. If no response within 7 days, the system automatically approves the milestone and payment processing begins.
Who actually processes the payments?
Traditionally: You invoice and rely on the client's bank transfer timing.
The Renno Way: The money sits in a secure third-party account and is only released after approval. Not even Renno can touch it.
What if there's an issue with the work?
Traditionally: You're stuck between continuing work or risking non-payment.
The Renno Way: The milestone payment pauses safely while the issue is resolved. The homeowner can request changes with specific feedback, the contractor resubmits with proof, and a fresh review period begins. All communication and evidence is documented in the platform.
FAQs for Homeowners
Is escrow only for large projects?
Traditionally: You pay deposits and hope the rest stays smooth.
The Renno Way: Escrow is most valuable whenever payment risk or complexity exists. Even on smaller projects.
Who controls the money?
Traditionally: One side holds the leverage, and tension builds.
The Renno Way: Neither party controls it alone. The milestone rules control release.
Does escrow slow projects down?
Traditionally: Payments get delayed by uncertainty and follow-ups.
The Renno Way: It often speeds things up by removing payment tension and making each step clear.
What if I'm not happy with a milestone?
Traditionally: Disagreements become emotional and messy, especially around the invoice.
The Renno Way: You can request changes through the Project's Milestone card with specific feedback about what needs to be fixed. Funds stay in escrow while the contractor addresses your concerns and resubmits. The process is documented and structured, not emotional.
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