Munich firm looks to launch its guaranteed rent platform in UK, but will it get a chilly reception from landlords and regulators?
A German proptech company looks set to bring its guaranteed rent scheme to the UK.
Backed by millions of euros in venture capital, Berlin-based start-up Home has moved into Munich and Hamburg and aims to be in 10 German cities by the end of 2020.
It has also announced an international expansion this year which, given that the UK is the Euro Zone’s top private rental market, means Home is likely to be heading here soon.
Guaranteed Rent Schemes, where landlords pay firms to take the admin and hassle of finding and managing tenants off their hands, are controversial.
There can be issues over who is responsible for repairs, while landlords might not have a say over their tenants when schemes sub-let the properties to local councils or the Home Office.
Home reckons it has refined the model. Its glossy website pitch explains how landlords sign up online in just 30 minutes and, after handing over the keys, leave Home to find the ideal tenants.
And if a tenant doesn’t pay, home covers the rent and insures the property in partnership with leading insurance companies. The tenant experience also gets a revamp; they use Home’s app and newly installed digital locks to view and move into apartments.
Thilo Konzok and Moritz von Hase founded the German proptech in 2016, which now gets 1,100 landlord requests per month. It has just raised another 11 million euros in venture capital funding.
“This latest round of investment will help us to serve more landlords in more cities and significantly improve the tenant experience, enabling us to build the first housing brand that both tenants and landlords love,” says Konzok.