PropertyLoop, which enables landlords to find tenants, manage their properties & stay “compliant” all in one place, has raised 101% (£1,221,194) of its £1,200,000 target from 129 investors via Seedrs with 23 days left in the firm’s crowdfunding campaign at the time of writing.
Located in London, United Kingdom, PropertyLoop operates in the Property (Digital Mixed B2B/B2C) sector. Incorporated in December 2021, the firm reports a Valuation (pre-money) of £8M; Type Equity; Equity offered 13.24%; Share price: £0.36; Tax relief; EIS.
Business highlights are as follows:
- Founding team scaled and exited a leading estate agency chain
- Revenue generating MVP with over 20,000 rental enquiries
- Accepted into PWC Scale Proptech Programme (over 500 applicants)
- $110bn market opportunity in the UK and ~$2trn worldwide
Key features: Secondary Market; Seedrs nominee min. £10.08 +.
As noted in the update, landlords today “have a painful and fragmented experience renting out and managing their properties.” They tend to “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.”
PropertyLoop says that they 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 they founded PropertyLoop. Their 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, their unique model enables both their 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.”
PropertyLoop explains that they “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, their 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, their 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, the firm will also “be heavily targeting the ever-growing Build to Rent sector and institutional landlords.”
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