PropertyLoop

Idea

Introduction

Landlords today have a painful and fragmented experience renting out and managing their properties. They face excessive fees and poor service and must stay on top of 500+ pieces of legislation to stay compliant.

A number of online agents have emerged in recent years but we estimate that 95% of landlords still use High Street agents to handle their lettings. We believe the solution is not to remove agents altogether, but rather leverage technology to help them better serve landlords and give them a fairer deal, whilst removing the unnecessary High Street overheads passed on to customers.

That’s why we founded PropertyLoop. Our platform enables landlords to find tenants, manage properties, and stay compliant all in one place, powered by a network of independent, local rental experts.

Crucially, our unique model enables both our local experts to earn significantly more money and our landlords to save up to 50% in fees than with traditional estate agents, whilst delivering a far superior lettings experience.

Substantial accomplishments to date

Business Traction:

• In just under a year, we have released a revenue-generating MVP into the market

• Received over 20,000 rental enquiries to date, with over 300 tenancies executed and over £3.2m of rent currently going through the platform

• Over 2,000 landlords have signed up so far to either register interest or as a platform user and we estimate that they own over 6,000 properties between them

• Over 17,000 messages exchanged on the platform with a response time of under 20 mins between users

• The average time for landlords and renters to agree offers on the platform is now just 2-3hrs, whereas it can take up to 5-7days with a traditional high street letting agent.

• We’ve achieved all this without external investment.

Team & Accomplishments:

• The founding team previously scaled and exited a leading London estate agency chain to one of the largest independent estate agents in the country

• Accepted into the PWC Scale Proptech Programme - 1 of only 9 successfully selected from over 500 prop-tech ventures

Monetisation strategy

We take a 30-50% cut of the transactions carried out by our local rental experts, also referred to as brokers. Generally, brokers earn a fixed percentage fee of the ongoing rent that landlords receive.

Typically, PropertyLoop brokers charge a 5%-8% fee, compared to 10%-17% charged by traditional high street agents. By keeping up to 70% of this fee, our brokers’ earning potential becomes significantly greater when compared to traditional high street agents where they commonly earn 5-10% commission of the agency’s 10%-17% fee on deals executed, alongside a very low base salary.

In addition to this 30-50% cut, our platform gives landlords and renters access to products and services that are needed throughout the lifecycle of a rental journey, provided through carefully selected third-party partners, and seamlessly integrated onto the platform. We earn a 10-30% commission on these transactions.

Going forward, we will also be heavily targeting the ever-growing Build to Rent sector and institutional landlords.

Use of proceeds

With our MVP live and generating revenue, we are now raising further capital to execute our next phase of growth.

The funds raised will be invested into three key areas:

1. Sales & Marketing

Our primary focus will be building our network of local rental experts. Onboarding and supporting our brokers will enable us to boost revenue generation by increasing activity on our platform. We will also be supercharging our marketing efforts to acquire new landlords.

2. R&D - Building out our product

A key objective for us on the back of this raise is to build out our Broker platform to provide our local experts with a host of tools to better service landlords and renters, as well as provide automated workflow processes to increase efficiency, enabling us to scale up.

3. Operational costs

We will invest in the business’ operational infrastructure to enable long-term scalability.