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As the founder of a London-based property start-up, I'd advise reversing the question: what are you offering the agent that is worth paying for? Once you ident

by rayhano 14y ago

As the founder of a London-based property start-up, I'd advise reversing the question: what are you offering the agent that is worth paying for? Once you identify that, you can calculate how much it is worth to them. For example, our auction allows agents to automate 'negotiation', so they can focus on landlords and stop annoying tenants. For a small agent, this is worth tens of thousands of pounds. For a medium sized chain, it's worth hundreds of thousands in savings a year. For a large landlord, the same. So we charge a percentage of annual rent, as a transaction fee (rather than a listing fee - our hypothesis is the listings/lead generation model is dying and needs a bullet to the head). Hope this helps. Feel free to get in touch; I'm on twitter @rayhanrafiq

ceeK 14y ago
Interesting suggestion. After putting it that way, I did a bit of rummaging of the estate agents website. Combining their rates for landlords (7% of total property revenue + VAT, the 'middle' option), with the data they have for properties, I managed to give a rough estimate that they earn about £320,000 p/a on student properties. This doesn't count properties listed before January or so, as I wasn't recording them and they're now gone. Now, they have a 'No let, no fee' policy. Let's say they don't manage to let 10% of their properties, that's £32,000 of missed revenue. 20% and it's £64,000. Obviously, I'm not sure on what the rate is, but if my student union is anything to go by, supply > demand, so it's at least relevant. As such, my service at least on the outset, aims to reduce this figure by funnelling students into a central portal and quickly directing them to properties available (availabilities are updated daily). Furthermore, I realise they at least spend >£2000 p/m on advertising in the student newspaper. The service also aims to eradicate this by becoming 'the' place to go for student properties. By not having to advertise so aggressively, agents are left with more resources to acquire new landlords. Moreover, the top of the funnel starts with students who don't know where to look for properties, are rushed, mislead and unfortunately hurried into contracts. By having one site that deals with the whole process it becomes simpler, more relaxed and students have the opportunity to browse all the properties available. They get to find exactly the property they need. Students are happier, properties are let quicker. Given this information, what would you suggest? I don't wish to scare them away as ideally I want all real estate agents in the area to sign up in order to fully benefit students. I'd love to chat more if you're up for it, you can catch me at c.k.howell (at) warwick . ac . uk

by rayhano 14y ago

ceeK 14y ago

Interesting suggestion. After putting it that way, I did a bit of rummaging of the estate agents website. Combining their rates for landlords (7% of total property revenue + VAT, the 'middle' option), with the data they have for properties, I managed to give a rough estimate that they earn about £320,000 p/a on student properties. This doesn't count properties listed before January or so, as I wasn't recording them and they're now gone. Now, they have a 'No let, no fee' policy. Let's say they don't manage to let 10% of their properties, that's £32,000 of missed revenue. 20% and it's £64,000. Obviously, I'm not sure on what the rate is, but if my student union is anything to go by, supply > demand, so it's at least relevant. As such, my service at least on the outset, aims to reduce this figure by funnelling students into a central portal and quickly directing them to properties available (availabilities are updated daily). Furthermore, I realise they at least spend >£2000 p/m on advertising in the student newspaper. The service also aims to eradicate this by becoming 'the' place to go for student properties. By not having to advertise so aggressively, agents are left with more resources to acquire new landlords. Moreover, the top of the funnel starts with students who don't know where to look for properties, are rushed, mislead and unfortunately hurried into contracts. By having one site that deals with the whole process it becomes simpler, more relaxed and students have the opportunity to browse all the properties available. They get to find exactly the property they need. Students are happier, properties are let quicker. Given this information, what would you suggest? I don't wish to scare them away as ideally I want all real estate agents in the area to sign up in order to fully benefit students. I'd love to chat more if you're up for it, you can catch me at c.k.howell (at) warwick . ac . uk