Property technology platform Home Made has launched a new embedded finance offering for private landlords that gives them the option to spread the cost of property marketing and management fees over the course of the tenancy.
Property Wallet, which is integrated with Home Made’s existing services, works on a monthly subscription basis and is designed to offer a more cost-effective solution compared with the one-off fees charged by traditional lettings agents, which could be thousands up front.
Tenants pay their rent into Property Wallet, with each tenancy having its own bank account. The platform then calculates what needs to be withheld to cover expenses. Landlords can log in and view transactions.
"Property Wallet was developed as a natural extension to our existing service and ongoing success in addressing landlords' and renters' major pain points. The data we have on the UK rental market clearly showed that private landlords needed a feature like this to help them relieve the pressure on their cash flows and improve the efficiency with which they manage and optimise their finances, so we built a solution," said founder Asaf Navot. "Over time we will be able to help them optimise their financial performance to take advantage of seasonal spikes, market trends and consumer behaviours, growing their revenues and passing these savings onto renters."
The new feature adds another support to the Home Made platform for landlords, and follows the platform's expansion into Ireland.
The start-up, which has been in business in the UK for five years, is working to replace the traditional letting agency with a digital-first platform that will make the process more efficient for both tenants and landlords.
Home Made focuses on build-to-rent developments, using proprietary technology and data analytics to get developments to stable occupancy – more than 95 per cent.
For tenants it offers late viewings, around-the-clock support and access to online services for submitting important documents such as references.