# Collateralized
### **Collateralized rental**[](https://docs.renft.io/docs/Getting-started/rental-solutions#collateralized-rental)
Our collateralized solution transfers the NFT to the wallet of the renter. This means that the renter can do anything he wants with the rented NFT. Therefore, collateral is required to compensate the lender if the NFT is not returned. This is a huge barrier for rentals because most of the time people rent an NFT due to a lack of funds to buy it themselves.
Since the NFT is in the wallet of the renter, an integration with reNFT is not necessary and therefore you can use the NFT as if you were the owner of it. This is the biggest advantage of collateralized rentals, but there are also a lot of disadvantages. A few of them are:
* A collateral is a huge barrier for people to rent because rent often makes sense due to a lack of funds
* If the value of the NFT changes and becomes higher than the collateral, the lender is at risk
* The renter can use the NFT as collateral for a loan without asking permission from the lender
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