Tenanted property portal for landlords to buy and sell tenanted property.
|Location||Thetford United Kingdom|
|Sectors||Property Mixed Digital/Non-Digital B2B|
|Incorporation date||1 May 2015|
A property portal for buy-to-let landlords and their agents.
Have you ever come across a tenant who is happy to be served notice because their landlord wanted to sell? What if they don't have to leave?
Consider how much money buyers and sellers of tenanted property could save in terms of rental voids and agents fees as a result of buying and selling with reliable tenants in situ.
Buyers search the property portal by postcode or town and simultaneously set up email alerts so they are notified when a property matching their purchasing criteria is listed.
Basic advertisements are FREE for both landlords and agents to create.
Premium listings feature at the top of search results.
Sponsorship of a featured property Newsletter is available to agents and developers on an ex-gratia, meritocratic basis, i.e. sponsors who make the largest payment per enquiry receive preferential placement of advertisements.
When private landlords consider selling a Buy-to-Let property via conventional means they are immediately faced with a list of dilemmas:
1. Will our tenant(s) cooperate with viewings?
2. Will our tenant(s) move out and leave us with a rental void and negative cashflow?
3. If the property is unoccupied what will happen to insurance cover?
When a Buy-to-Let property is listed for sale on the portal we share tried and tested tips to make certain that the process of selling runs as smoothly and profitably as possible. We also share tips for due diligence with prospective buyers.
It takes just minutes for users to upload key data to create an advertisement for a property for sale. The advertisement is then auto-enhanced using algorithms that curate data from trusted providers to provide analysis on risks and returns using key demographics based on postcode.
Substantial accomplishments to date
The new portal became operational in April 2015. Why not try a search in your town or city?
Property118 is a Google News feed. Most people in the PR and Media sector are likely to recognise the level of commitment and professionalism required to achieve Google News Publisher status. This provides enhanced SEO benefits hence high levels of visitor traffic via search engines.
Two of the Directors (Mark Alexander & Michael Woodfine) co-founded a commercial finance brokerage in 1990 which ranked #38 in The Sunday Times Profit Track 100 by 2008.
Mark Alexander is also a non-exec Director in LettingSupermarket.com Limited which completed a £250k fund raise earlier this year within 7 days.
There are four sources of income as follows:
1) Premium upgrades to advertisements at a cost of £11.80 per week per advert. The benefit of upgrading is that adverts rank above free listings in search results.
2) Reveals – In order to minimise the occurrence of nuisance calls to advertisers we charge £1.18 to display contact details of vendors, developers and agents to prospective buyers.
3) Auction House Referral commission – We cross promote the online conditional auction model (operated by Auction House UK franchisees) to vendors and receive income from Auction House UK for successful referrals.
4) Newsletter Sponsorship – The Newsletter will be sent to the database of enquirers who have previously expressed an interest in a property advertised on the portal.
Use of proceeds
One rule of thumb used within the TV advertising fraternity is that it costs circa £5 to reach 1,000 viewers watching live TV. This is why it is more expensive to advertise in the intervals in Coronation Street than at 4am on a more obscure channel. Nevertheless, the same rule of thumb applies to all channels, i.e. smaller channels receive less advertising revenue.
We plan to appoint a specialist agency to optimise returns, which will include monitoring the advertising patterns of established brands pitching at the same audience, e.g. Direct Line Landlords Insurance and British Gas Landlord packages.
According to Paragon Mortgages Plc. there are five million UK properties owned by private landlords. Portals dominating the online advertising of property with vacant possession (e.g. Rightmove and Zoopla) and the estate agents supporting them naturally assume the traditional vacant possession sales model.
“An army of two million private landlords now own and rent out five million properties, according to the report by mortgage lender Paragon. This means 18pc of households now rent from private landlords. And the proportion is growing, as investors continue to see property as a source of future income and profit.” Source The Telegraph 22nd October 2014
The Private Rented Sector has been growing rapidly since the phase “buy-to-let” was first coined by the Association of Residential Letting Agents in 1996. The sector is continuing to grow, at least in part due to over 55’s seeking better returns from their pension funds, which can now be liberated and used to fund alternative asset classes such as rental property to provide income in retirement.
We have estimated that over 60,000 UK families are forced to consider the sale of BTL properties every year.
Characteristics of target market
The following data was published by HMRC on 21st April 2015.
Number of residential property transaction completions with value £40,000 or above for the tax year 2014-2015 = 1,204,320.
Based on 18% of all households being in the Private Rented Sector (according to data produced by Paragon Mortgages Plc) this suggests that approximately 216,777 sales fall into the target market for the Property118 portal every year.
Our TV advertising strategy, as described in the "Proceeds" section, should drive new users to the website. We capture contact details as soon as they complete a search and property alert request or become a member of the website forum.
We already market the portal to the regular forum users within our daily newsletters and also on comment notification emails via our forum.
The entire Property118.com website is geared towards social sharing via Facebook and Twitter. We also plan to experiment with pay per click marketing of the website via Google and other search engines.
Property118.com is regularly quoted in the relevant media, we see every reason for this PR exposure to continue to grow as our brand awareness continues to evolve and improve.
The Property118.com website was initially setup in 2011 as a limited liability partnership. In April 2015 the current version of the site was launched, which now hosts the services provided by Property118 Portal Ltd, and is the company into which the investment will be made.
It provides an online community platform with a mission to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents. Property118.com is an official Google News feed as well as being a leading forums in the UK Private Rented Sector.