South Africa’s Leadhome, has launched a rental service at zero percent commission. According to the CEO and co-founder, Marcél du Toit, the launch of this new service is part of a broader strategy to provide a full end-to-end range of boutique property services.
“Leadhome recognises that rental property management requires specialist skills. It is generally not an easy sector, marred by significant challenges, including a struggling economy. We have conducted extensive research into rentals and have gained valuable insight into the pain points faced by clients, as well as the pitfalls. This knowledge and know-how have enabled us to offer a compelling product to the market,” says Du Toit.
Offering a zero percent commission, Du Toit says that Leadhome’s aim is to continue building solid customer relationships, adding value and building an ecosystem and community as opposed to simply just selling and renting homes: “According to Payprop, at least 40% of rental applicants are classified as high or very high risk and 23% of current rental tenants are in arrears. Adding further complexity, 12% of properties over the R12,000 per month category are vacant. There is now an oversupply of stock and undersupply of good quality tenants and a clear need for a disruptive rental proposition.”
According to Rupert Finnemore, head of business development, Leadhome, there is an understandably high level of fear associated with renting out your property due to a number of fears associated.
“Our no-strings-attached, zero percent commission will include a full listing, advertising on all major portals, viewing facilitation, lease negotiation, drawing up contracts, and facilitating ingoing inspections. We are in a beta test phase of our launch programme and will be looking to add additional products and services into this rental environment,” said Finnnemore.
Many landlords struggle with the time to manage a leased property. Often finding the maintenance and management thereof a bind. Leadhome will thus offer this service at well below the prevailing market commission rates.
To ensure their offering remains in line with market conditions and sentiments, Leadhome is extending its research beyond its initial 20,000 customers and is inviting consumers to participate in the Gauteng-focused beta testing phase of its rental service.