Wigwamm - Monday night rental property auctions

Transcript

1. Property lettings done so well, you‘ll love your agent!
   

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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
   

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3. Agents represent landlords,
   yet spend 95% time on tenant enquiries
   Landlords = revenue; tenants = cost
   

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4. Transparent auction, every Monday night, achieves ‘best price’
   All tenants referenced prior to auction night
   How simple and transparent letting should be
   

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5. Auction = ‘best price’ = incentive to form market
   

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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
   

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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
   

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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
   

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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
   

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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
    

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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
    

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