Wigwamm - Monday night rental property auctions

Transcript

1. Property lettings done so well, you‘ll love your agent!
2. How £50bn* rental property is let by agents Read: How agents ruin their collective reputation *ONS (UK) estimates 3m private residential tenancies x £1,400pcm average rent = c.£50bn pa UK rent
3. Agents represent landlords, yet spend 95% time on tenant enquiries Landlords = revenue; tenants = cost
4. Transparent auction, every Monday night, achieves ‘best price’ All tenants referenced prior to auction night How simple and transparent letting should be
5. Auction = ‘best price’ = incentive to form market
6. ‘Market Price’ 1. Entirely manual, time-consuming, costly 2. Pricing mechanism is guess-work 3. First reasonable offer wins 1. Electronic transaction, instant payment 2. Best price found with transparent auction 3. All people looking to rent bid on the same night
7. Achievements to date • Customer development – spoken to over 400 agents, with just over 40 interested to trial – have interacted with over 1,000 tenants to help shape product • Product – we have been trialling with customers to validate our assumptions – 3rd prototype being developed for February 2013 closed beta trial
8. Market size 1. UK property portals revenue £150m 2. Property portal saturation 100% 3. Value proposition: phone book 1. Wigwamm revenue potential £333m* 2. £50bn private rented sector income 3. Value proposition: e-commerce/one-stop-shop *Wigwamm 1% fee of annual rent on all transactions. Average tenancy 18 months, therefore revenue potential = £50bn x 1% x 2/3 = £333m
9. • Lower the cost of lettings through automation and auction • London: £50bn+ rental income; £333m Wigwamm revenue potential (at 1%)* • Revenue: £200-£800 per property Future referral fees: Lifetime value of data = £1,000+, per property – Properties remain searchable on the internet for prospective interest – We can alert owner to sales/letting prospect; earn fees with no extra work Business model PAYG Silver Gold Black Monthly cost - £100 £300 Call Property let fee* 4% 2% 1% Free Market price guarantee Viewings Included £120 £120 £120 Photos / Floorplan Included £150 £150 £150 Auction Reserve £100 £100 £100 £100 *Wigwamm 1% fee of annual rent on all transactions. Average tenancy 18 months, therefore revenue potential = £50bn x 1% x 2/3 = £333m
10. 12 years overseeing family lettings & property management business 4 years setting up international banking and asset management offices Imperial graduate computer scientist who did her dissertation on auction theory Team Stephen Rayhan Caroline and the famous designer behind The Friday Project
11. Way Ahead • £50bn+ worth of letting transactions are entirely manual • Wigwamm offers massive time/cost savings with a fully electronic trading system tailored to property • Transparent pricing mechanism incentivises market to be formed • Increase in profitability for an ailing property agency industry • We will make agents reputable, by ensuring the bad ones have nowhere to hide • Asking for £400k investment to make letting agents loved