A new rental firm that has a guaranteed rent model has raised £2.5m as it prepares to expand.
The founder of Residently, Tom Allason, has a strong track record of success.
He was a founder and CEO of eCourier, acquired by the Royal Mail, and went on to found courier firm Shutl, which expanded across the UK before launching in the US, and was acquired by eBay.
He founded Residently two years ago, and until now the business has operated in London.
He said: “I was surprised by how the rental market had failed to move with the times.
“Why was it you could book an Airbnb in seconds but renting your next home would take weeks full of friction, stress and hidden costs?
“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.”
Tenants can manage viewings and a wide range of services through the mobile web. They also get flexible terms, including the ability to move into a property any time in the following three months.
With Residently building a portfolio of properties, and plans to expand into other cities both in the UK and globally, renters can move between properties in the network, free of charge.
Residently commits to leases of five years, signing up as the landlord’s direct tenant and guaranteeing rent. Residently then acts as the direct landlord.
“Why was it you could book an Airbnb in seconds but renting your next home would take weeks full of friction, stress and hidden costs?” To summarise, the guy lives in a bubble!
“They also get flexible terms, including the ability to move into a property any time in the following three months.” I haven’t stopped laughing at this one.
I’m not against anyone starting a business but after decades and decades you would of thought that the lettings industry would have self-evolved and suddenly some guy who clearly does not understand the industry wades in or any real experience within it. This will not work for private lettings, clearly focused on the company lets with a limited appeal. What would be interesting to see is the small print behind the razzmatazz. I wonder if the investors investigated any potential limits of this business venture?
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Surely this is just another rent to rent business? Fine if everyone involved agrees but wait what about the banks, insurance companies, freeholders, local authorities et al?
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I see you don’t live in a bungalow.
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