A property platform has launched which pairs investors with brokers using the rent-to-rent model, called Proptific.
The rent-to-rent model works by having the investor take out a lease with a landlord or letting agent with guaranteed rent, before refurbishing the property and then charging higher rents, often on a short-term basis.
Adin Harris, founder of the platform, decided to set up the company after becoming frustrated with the process of finding these deals.
He said: “We’re not interested in the big dogs. We want to help brokers that are part-time, as well as lower the barrier to entry by opening this up to anyone who wants to invest in property and earn a bit extra.
“A lot of people don’t realise you don’t need £100,000-200,000 to invest, you can make a return with £8-9,000.
“It’s time to end this stereotype of investors comprising of 60 year old miserable rich guys.”
The platform is currently free to use for those who broker the deals, known as deal sourcers.
Having just launched Proptific, there are currently 40 investors and 18 sourcers using the platform, but Harris targets having 500 investors, 200 sourcers by the end of January – at which time he plans to start monetising the platform by charging a cut of transactions.
As it stands most of the deals are advertised on Facebook Marketplace and Facebook groups, but Harris labelled this as something of a Wild West, with investors having to wade through hundreds of options before finding one that’s suitable.
Brokers charge an estimated £3,000 per deal.
Harris himself got into investing in rent-to-rent schemes to secure an extra form of income while working as a drainage engineer for Thames Water.
He said: “I had a breakup after five years and was on a downer.
“I clicked on Instagram and it was a course on how to earn £1,000 in property with a £100 signup called Assets for Life. I had £200 in my bank account.
“That was the start of it. They opened my eyes to investing and the different strategies.
“About three or four weeks after the course was finished I tried to source deals.”
