The business rules in the existing house rental system create both legal and operational challenges. For instance, while the rule BR1 requires a signed agreement, the informal means of achieving this (face-to-face as per BR2) lacks standardized documentation, potentially increasing misunderstandings or legal disputes. Furthermore, BR3 implies fines for violations, but informal agreements can make enforcement difficult. BR4 demands immediate cash payment from tenants, which is logistically demanding and not technologically supported, adding to operational strain. Lastly, rules regarding tenant identity (BR6) and age (BR5) necessitate careful and reliable verification, which is challenging due to the informal system .

The proposed system can improve upon the existing manual, informal process by introducing technological solutions that streamline documentation, contract management, and communication. It could automate tenant registration and rental agreements, providing reliable data storage and retrieval. Technology may offer digital payment options, reducing reliance on immediate cash transactions, and enable online brokerage services for accurate information dissemination. These enhancements would substantially increase system efficiency, reduce cost, bolster legal security by providing a more formal structure, and potentially broaden market access .

Brokers play a significant role in the existing house renting system as intermediaries between house owners and tenants. They are responsible for sharing information, which is a critical component of the renting process. However, this reliance on brokers can affect the reliability of the information, as it may lead to inconsistencies or inaccuracies in the details provided about payments and rental terms. This is compounded by the informal nature of their work, as information exchange lacks technological support or standardization, potentially leading to miscommunications or disputes .

The existing house renting system in Ethiopian cities is inefficient primarily because it relies on informal, manual processes that are time-consuming and labor-intensive. House owners and tenants must handle transactions face-to-face, including registering new tenants and conducting rental agreements. Information processing is manual, and documentation relies on physical paper, leading to inefficiencies. Additionally, posting rental information requires physically placing printed notices, and brokers may provide unreliable payment information .

The major functions in the existing house renting system include renting houses, receiving money, making agreements, serving as intermediates, sharing information, telling prices to tenants, reserving houses, and paying money, which collectively contribute to its goal of facilitating rentals. Primary actors, such as house owners, tenants, and brokers, function to create a network where properties can be leased through direct negotiation and settlements. Despite the informal structure, these elements together aim to secure temporary accommodation deals, manage tenancy contracts, and ensure transaction completion, albeit inefficiently .

The existing system's reliance on manual documentation significantly impacts legal binding and contract enforcement in house rentals. Since agreements are filed on paper and often informal, there is increased risk of loss, damage, or tampering, undermining the integrity of legal contracts. Manual documentation lacks mechanisms for easy authentication of details, complicating dispute resolution and enforcement of penalties for breaches. This inefficiency places both tenants and house owners at risk of legal vulnerabilities and reduces the ability to hold parties accountable to the contract terms .

The manual process of house renting implies significant inefficiencies and higher costs for both tenants and house owners. For tenants, the process requires physical presence for agreeing on terms and payments, consuming both time and money. House owners face operational difficulties in managing records and communicating with tenants, which reduces overall efficiency. The lack of technological integration in the process leads to longer transaction times and increased likelihood of errors or misunderstandings, further driving costs for both parties .

The existing system handles violations of rental agreements through fines stipulated within the agreements; however, challenges arise due to the informal and manual nature of documentation. Enforcing these fines is problematic without reliable records or standardized enforcement mechanisms, often leaving disputes unresolved. The reliance on physical paper and face-to-face agreements opens the possibility for record tampering or misplacement, complicating legal pursuits and reducing the credibility of fines as a deterrent .

Additional requirements for tenants, as per the business rules, include being above 18 years of age and possessing an identity card. These conditions are significant as they ensure the legality of contracts; age verification aligns with legal adulthood, enabling parties to legally bind agreements. The need for identity cards ensures accountability and traceability, providing essential identification in agreement compliance and enforcement, thereby supporting the formalization of rental agreements and safeguarding against fraudulent activities .

The existing house rental business process mirrors the socio-economic dynamics in Ethiopian cities by highlighting reliance on informal, face-to-face interactions over structured, technology-aided services. This reflects broader economic constraints where digital infrastructure is potentially inadequate or underutilized, compelling reliance on manual processes. The system's design around immediate cash transactions identifies a cash economy prevalence, indicating that banking and electronic payment systems may not be accessible uniformly. Brokers' roles also signal a trust-based community structure where intermediaries provide linkage in the absence of formal systems .