An online letting agent, OpenRent, has done a deal said to be worth millions of pounds with media giant Northern & Shell.
The deal could significantly up the ante between online and traditional letting agents.
OpenRent is being given advertising, including TV ads on Channel 5 and marketing campaigns in the Express newspaper, in exchange for North & Shell acquiring a stake in the two-year-old company.
It is not clear whether money has actually changed hands, as the financial terms of the deal have not been disclosed.
The first TV advert for OpenRent specifically says landlords can save money by not using a high street letting agent.
OpenRent, which lists on Zoopla and Rightmove, charges landlords £29 to advertise on all the main portals, and £49 for online listings, plus referencing, contracts, deposit handling and first month rent collection.
It charges no renewal fees to landlords, and charges nothing to tenants beyond a £20 referencing fee if the landlord requires a reference. It bans landlords from charging admin fees.
OpenRent says its business targets landlords with a “better-than-high-street service”.
The business was founded by two former students, Adam Hyslop and Darius Bradbury, after they met at Oxford University. They have experienced both sides of the lettings market, as tenants and as landlords.
Hyslop said of the deal: “We are delighted to have found the right partner in Northern & Shell Ventures whose entrepreneurial culture was evident from the first meeting.
“94% of our customers rate us 5/5 on review sites such as Trustpilot and Goodle and the conversion rate of landlords who hear about us is extremely high, so what we wanted was a partner who can bring us to a wide audience, and help us tell the two million landlords in the UK that there is an alternative to the high-fees, low-service culture of the high street.
“On average, landlords save over £1,600 when switching to OpenRent from a traditional high street agent.
“We handle all the admin of creating a legally strong tenancy, and our best-in-class property marketing means the average time to let a property is just ten days, and much less in London and other cities.”
Richard Martin, commercial director of Northern & Shell, said: “Customers are increasingly looking to the internet for services that are not only better but also cheaper and more efficient than the services offered by letting agencies on the high street.
“Without that cost base, OpenRent is well placed to offer a stand-out service, and our media portfolio will help them build a brand that represents transparency and simplicity as a key differentiator.”
Northern & Shell’s portfolio includes Express Newspapers and OK! magazine. It is currently selling Channel 5 to Viacom, but Eye was told that this would make no difference to the advertising deal.
The TV advert – which effectively tells landlords how they can advertise on Rightmove and Zoopla for £29 – can be seen via the link below.
The other link takes you to a landlord’s experience of using OpenRent, in the London Evening Standard.
https://www.youtube.com/watch?v=nqC2QtS1F0s&feature=player_embedded
Comments (4)
well done @openrent its good to see an online agent doing innovative deals. I am sure you know your market and channel 5 may work for you. We look forward to competing in the very near future 🙂 chriswelch@easyproperty
The irony of this story for me is you have a vendor of newspapers telling the world things are done better online and then exchanging equity for newspaper adverts!…..and a bit of tv but lets face it who the f*** watches Channel 5 anyway!
Better than High Street service? really? they don't do viewings, they don't help negotiate the best rent and I have to pay them whether they find me a tenant or not.
In what way is this 'better' than a high street agent? yes its cheaper, which is not not always better, but only because I have to do most of the work.
Servicing my car myself is cheaper than taking it to a main dealer but is that better?
"landlords save over £1,600" – where do they get these figures from?