A tech-heavy property investment start-up with a familiar business model hoping to take business off prime rental firms such as Savills and Knight Frank has received an extra £2.5 million from investors
Called Residently, it takes over apartments from landlords, renting them direct on leases of up to five years and letting them out to tenants via a smartphone app-based management system.
This looks after viewings and tenant on-boarding and also enables tenants to order services such as cleaning services, furniture and even Christmas trees.
Residently does not charge tenants any fees and enables them to move in up to three months after committing to a tenancy as well as move around the company’s network in London and, later, other key global cities. If the go away for prolonged periods, their homes can also be sub-let should they wish so.
Launched earlier this year, Residently has been funded until now by founder Tom Allason with cash he made from selling two online courier companies, the most recent of which he sold to eBay in 2013.
But the company has now received a further £2.5 million from undisclosed private investors after securing properties under management worth £60 million or approximately 60 apartments, with a further 15 waiting to be rented out.
The properties are largely upmarket apartments in central and prime but fringe areas of London ranging from £1,658 for a one-bedroom apartment in North London to £18,754 for a four-bedroom house off Old Street.
The company offers landlords flexible multi-year leases, guaranteed income, doesn’t charge management fees and claims to offer them ‘better yields over the long-term’.
“I was surprised by how the rental market had failed to move with the times,” says Tom (left).
“I realised that generation rent would, for the rest of their lives, be spending the greatest proportion of their income on something that had a horrible customer experience and enjoyed no brand loyalty.
“The idea for Residently was formed from this insight, with the mission of building a rental brand designed around the renter but which also benefited landlords.”