Co-living rental platform Lyvly has returned a significant number of its tenants back to their landlords as its key 20-something demographic continues to stay away from London.
Launched in 2017 and backed by £3.5 million from investment firm Mosaic the year after, Lyvly offers professional young tenants ‘modern, clean, stylish flats with all comforts, all bills included and a perfect and responsive customer service for all your needs’. It was co-founded by Phillip Laney (above, second right) and Dario Favioni (above, left).
Part letting agent, property manager and tenants’ club, it also works alongside fund managers and build-to-rent developers to increase income and reduce voids, claiming that its membership model persuades tenants to stay longer.
But complaints from members, as it prefers to call its tenants, on the Trustpilot ratings website have emerged revealing that many had been contacted by their real landlord to inform that their agreements with Lyvly had ended.
The proptech firm says it is not experiencing any financial troubles, but has decided to significantly scale back its portfolio and return its tenants to their property’s original landlords.
“All of the leases are still valid but the services may not be easy to deliver for all landlords, which is why some are offering new terms which you can discuss directly with them,” a spokesperson said on Trustpilot.
Several specialists within the ‘co-living’ sector have speculated on social media that Lyvly faces a double whammy.
Demand for its homes has slumped during Covid as many young professionals have moved out of London while rents have reduced significantly in the prime London, making their properties expensive compared to traditional PRS properties.