Why the entire rental experience needs rethinking

TOM ALLASON CEO & FOUNDER, RESIDENTLY

Why the entire rental experience needs rethinking

Residently founder Tom Allason shares his response to the everchanging face of the rental market.

The idea for Residently came about when I was looking for a home to rent in London. It had been a decade since I last rented and I was quite looking forward to renting again... but I was surprised how the rental industry had failed to move with the times.

Needless to say, I was surprised at how the rental industry had failed to move with the times. We are used to booking a taxi, takeaway or trip away in seconds – so why shouldn’t we expect the same kind of responsiveness from what we spend the most on: our fundamental need of shelter?

Homeownership is becoming less compatible with today’s consumer, who expects to be in a job for four years, not 40. Ownership and the transactional costs associated with buying/selling act as a barrier to taking a job on the other side of the city, let alone the world.

Rising property prices used to ameliorate these costs, but how much more capital appreciation lies ahead? How much more income can future buyers spend on a mortgage even with interest rates at record lows? Would a deposit be better invested in public equities?

These are the questions that today’s would-be homeowners are asking themselves. A major reason why people still buy isn’t speculation or the desire to become an accidental landlord, but that renting is still a frustrating and inflexible experience.

For me, that’s the opportunity. What if renting was effortless and provided the freedom to enjoy the things that matter most?

We believe we will become the world’s leading rental brand by making the process of renting a property seamless, and then providing convenient services which enable the tenant to thrive in their home.

For landlords - more revenue, lower costs, better tenants

In creating a really great experience for the renter we also improve the economics for property owners. By removing friction from the process of renting a property, we let properties 5x quicker than the industry average, so reducing void periods.

Furthermore, as a technology platform, we don’t have the overheads of a traditional letting agent, while we also benefit from an additional revenue stream in the optional home services we provide to tenants. In London, this allows us to charge landlords nothing for their first three months then 7.5% commission thereafter. This includes finding tenants and managing the property, and there are no hidden fees, even at renewal.

I am a firm believer that expectations only move in one direction. As consumers get a better experience across other sectors of their lives, they won’t go back to accepting mediocre.

Our strategy is quite simple; we understand and respond to what our customers want and work to exceed those expectations. It isn’t rocket science – it’s our mission to provide an effortless way for renters to find and thrive in their home.

We are used to booking a taxi, takeaway or trip away in seconds – so why shouldn’t we expect the same kind of responsiveness from what we spend the most on: our fundamental need of shelter?