Controversial industry figure Simon Shinerock says he has signed-up 75 tenancies using his ‘advanced rent’ primary tenancy model which offers landlords a year’s rent in advance.
Launched in July to great fanfare including coverage on Sky TV Shinerock, who runs 15-branch London and South East estate agency including Choices, Sinclair Hammelton and Daniels, says he is to offer the idea to competing agents because, he claims, it’s the “ultimate landlord marketing tool”.
Shinerock says his initial pilot of the project has generated advance rent payment for 75 tenancies and that it’s already helping him sign-up landlords in a difficult market as the tenant fees ban bites.
“So far approximately a third of the landlords who have been offered it have taken it up, which is encouraging,” he says.
“Normally we charge 12-15% full management fee but landlords usually haggle down to 9%.
“But offering a year’s rent up front helps us keep this haggling to a minimum.”
Shinerock, who is chairman of Choices, says he has the funds to get the business off the ground but is looking for City fund financing to roll it out nationally.
“I also want to get other agents involved. The idea would be to charge them a subscription in return for leads using the rent in advance model, a bit like ValPal does,” says Shinerock.
“It’s not for everyone, but even if the model could capture 10% of the market then you’re talking about a lot of tenancies whether via agents or landlords.
“I’ve put my head above the parapet with this because I think it’s the best idea I’ve had so far for the letting market.”