Goodlord is an online platform for managing the full tenancy process for lettings and estate agents. Founded by a former estate agent and a veteran of digital development, Goodlord handles all paperwork and payments digitally and allows for paperwork to be e-signed. Goodlord estimate their market to be worth over £750m, have processed more than £2m in tenancy transactions, and is already in 25 offices nationwide.
Goodlord is an online platform through which tenancy details can be completed, agreements arranged, payments made, and paperwork e-signed. It is designed to make the process of arranging a new tenancy simple, efficient and easily-managed.
What pain do we solve?
Property transactions are painful. Whether renting or buying, the process hurts, for tenants, landlords and estate agents.
Our mission is to take this pain away.
Goodlord is designed to make the process of completing a new tenancy easy and efficient. Our on-rails process is designed to allow deals to be completed in record time with built-in e-signing and card payments.
We are committed to becoming the global transaction standard for property.
Reducing administration effort for tenant, landlord, & agent
We know that for most people, the experience of renting a property is far from simple. The process typically requires hours of administration spent printing, scanning, and attending face-to-face appointments.
This is a fragmented and highly inefficient procedure for all parties. Goodlord is designed to dramatically streamline and automate large parts of this workflow.
Simplifying a complex process
Goodlord consolidates this process into one simple, free-to-use platform. We remove the pain by leveraging the best of mobile and web-based technology, in addition to a number of proprietary innovations.
Furthermore, by being a single platform, Goodlord outperforms existing solutions reliant on multiple third party offerings such as e-signing and payments. Solutions dependent on external platforms are typically subject to subscription fees, suffer inefficiencies (due to non-interoperability), and fail to provide a unified overview of a tenant’s progress, making it difficult for agents to keep track of deals.
Ultimately, Goodlord is designed to enable estate agents to process more deals in less time, reducing costs while making the process far more satisfying for landlord and tenant.
Key achievements and traction delivered so far
Goodlord went live in January 2015, and has been rolled out in 25 offices nationwide. We have so far processed more than £2m in tenancy transactions, and have integrated with a growing number of software platforms.
One of our first clients has enjoyed annual savings of almost £50k since adopting Goodlord. They have reduced their administration headcount from 6 to 4.
The Goodlord process
We believe there are numerous advantages to replacing more traditional approaches to tenancy administration with Goodlord:
- One unified platform – Goodlord combines dynamic document generation, e-signing, and payments into one user-friendly system.
- Complete anywhere – Goodlord enables tenancies to be processed from any location, on any connected device. Deals simply move faster.
- Fully customisable – Custom branding, custom contracts, integrated with existing software.
- Robust security – PCI compliant, and boasting military grade security. Goodlord is penetration tested regularly to ensure data security.
Please see our business plan for more detailed descriptions of each area.
Our mission is to become the world’s leading rental transaction platform. By owning the rental journey, we will gain a unique opportunity to offer complementary products and services at precisely the right time, compounded by the advantage of our integrated service offerings becoming the most logical choice. We will also have a compelling opportunity to gather large amounts of valuable market data.
Our Connect team work to integrate Goodlord with all leading estate agency software providers. This strategy enables us to seamlessly enhance the workflow of the estate agent, without causing any disruption to the business.
Goodlord is free for the estate agency to use. We charge a card convenience fee: the basic platform runs on a 75% gross profit margin through this alone, and we have already processed over £1.1m in card transactions. Over 66% of all tenants choose the convenience of card, and we believe this will increase as we continue to drive down the cost of this option.
Our first year target is to roll out within 50 estate agencies, processing 2600 tenancy applications per month.
By the end of the second year we will grow to 300 agencies and process at least 12000 tenancies per month.
Although seemingly conservative, these initial projections will enable us to achieve our financial targets. We would expect to beat these targets.
As our clients experience improved performance and higher profits through using our system (one of our main clients has enjoyed annual savings of almost £50k since adopting Goodlord), we believe the market will need to adopt our system in order to remain competitive.
Our product is designed to be highly scalable: the core structure is a series of automated processes which are not only valuable to private landlords, but also online and traditional estate agents, of any size, in any international market, performing any type of property transaction.
Goodlord is designed to be localised into different languages, and to support local legal processes. Every aspect of the platform is ready to scale.
Our target customer
Our customers are high-street agents, online estate agents, and landlords.
The decision-maker within the business is typically the owner, in the case of smaller businesses, or the Lettings Manager or Director in larger businesses.
How we sell
We employ a direct sales strategy, and an integration program.
Customers can sign up directly via our website, meaning that the business can scale efficiently via paid search, and word of mouth.
In addition, we integrate with existing software used by estate agents, which gives us direct market access to large groups of estate agents.
- The UK market for Goodlord has been estimated at approximately £750m per annum.
- There are 13,000 NAEA, ARLA, ICBA and NAVA accredited local estate agents and letting agents registered on propertylive.co.uk.
- Approximately 125,000* rental transactions are completed in the UK each month, and with an increase in numbers of HMOs (Houses of Multiple Occupation) properties there are often numerous tenants per property.
- Our research showed that the top 5 global markets** total an opportunity of over £6bn (percentages of population renting: US 30%, Germany 60%, France 35%, Netherlands 35%, Australia 25%).
* English Housing Survey Report 2013-1014. Section 2.49.
** Selected due to similarities with UK housing market, and because of high proportion of renters.
Key Market Trends
We recognise that the property sector is undergoing a process of automation and consolidation. Increasing competition from online estate agents means that traditional high street agents are under greater pressure than ever to increase efficiency and reduce costs.
Our research suggests that agencies of all types seek automated solutions that minimise administration and keep costs low. This is precisely the sort of solution that Goodlord seeks to provide.
The cost of property ownership continues to rise, meaning that the rental market continues to grow.
By owning the rental transaction process end-to-end, we can upsell numerous high-margin products and services at precisely the right time.
OnBoard Pro. This company has identified several similar challenges, however they offer what could be considered to be a complicated solution. Unlike our free-to-use service, they charge their customers a monthly fee. Their system attempts to replace, rather than integrate.
Richard White – CEO & Founder
Prior to founding Goodlord, Richard gained an in-depth knowledge of the property market through several years of working at Foxtons. He moved to a property startup called Capital Living in 2012, where he was instrumental in growing the company by 50%, writing and planning their processes in order for them to scale. He also arranged for Capital Living to be featured on a Channel 4 documentary, which features his journey in setting up Goodlord.
Philip Mundy – Advisor
Philip has over 10 years of digital development experience. Philip has managed multiple projects one of which reached number one in the app store. won numerous awards, and has previously sold a software business. His passion is in creating exceptional technology products, and building world class teams.
Thomas Mundy – Client Success
Tom has previous experience within a fast-paced business where customer satisfaction was key, managing an artisan confectionery production and distribution company after studying for his degree in Economics and Accounting at Loughborough University.
Jeremy Libre – Operations
Jeremy joined Goodlord as a recent graduate from the University of Oxford with a master’s degree in Physics, and nurtures an interest in the positive applications of technology to society.
These notes should be read alongside the Financial Snapshot
Key sales drivers: Direct sales. Goodlord will directly reach out to sales opportunities via Email, Phone, Twitter and also events. We will do this with the support of videos and online presence.
Other sales drivers: Integrations and growth referral scheme. Through our integrations with established software providers. Goodlord will offer referral incentives for the platform to be pushed out to their networks.
USE OF FUNDS:
Key Staff Hires
Platform Development , Sales and Marketing Development
EXPENSES AND PROFITABILITY:
The main direct cost is for insurance products that we source directly from brokers and upsell on our platform. Further costs are credit checks.
Sales staff and developers make up the majority of our wages budget and the other main cost center is marketing andoffice costs.
EXISTING DEBT OR EQUITY INVESTMENTS:
Equity: We raised £32.5K in October for 10% equity on top of original investment of £6K
Debt: We have also taken a further £40K
Current burn rate is £8K a month.
Next round: With the expected growth we will require our next round of funding (£3mn) in March 2016.
The Exit Strategy
Goodlord is designed to own the entire lettings journey for landlord, tenant, and estate agent. In addition, we will own large amounts of valuable lettings data for the UK, and in time we will possess international data too.
We believe there is a strong opportunity for ongoing cash generation, but there are many other viable routes we could take. A trade sale, for example, would be a logical exit. As a profitable and scalable SaaS business, we believe ARR multiples of 8-12x are realistic. As a strong cash-generating business with high levels of ARR, an IPO could also prove to be a viable option.
There are a number of global real estate groups who could potentially purchase Goodlord. CBRE for example,have a multi-billion dollar portfolio, and a clear objective to increase earnings and reduce management costs. CBRE in particular have over $90bn in assets under management. Goodlord would not only reduce their management and administration costs, but also generate a regular ongoing source of income.
Our ability to collect huge amounts of data, and market intelligence, could open up other potential acquirers. For example, credit agencies such as Experian, who have a track record of acquisitions in the hundreds of millions.
Additionally, given the huge opportunity for Goodlord to become a vehicle for insurance product offerings, businesses such as Zurich, AXA, and BNP Paribas would command significant strategic value through an acquisition.
Finally, perhaps a more progressive idea. A business like Amazon might see considerable value in owning an important part of the property rental journey.
¹Experian buys healthcare payment transaction business http://www.ft.com/cms/s/0/8a264210-46bd-11e3-bdd2-00144feabdc0.html#axzz3Yngd6d7i
²CBRE acquire global workplace solutions company and cloud-based energy management company.
Rewards with monetary value over £1000 can affect the amount of EIS you may be able to claim. Please obtain independent tax advice if there is any concern as Crowdcube does not provide legal or tax advice.
· Invest £10 and get
Access to the out-takes and bloopers reel from our video shoot.
· Invest £500 and get
A free fully branded Goodlord platform.
· Invest £1,000 and get
Dinner at Byron with the Goodlord founding team.
· Invest £5,000 and get
Welcome to the ‘House of Lords’. As a Type-A shareholder we would like to invite you to visit our head office whenever you want*, whether it’s just for a coffee and a chat or a run-down of how Goodlord is doing. We’d love you to swing by. We’ll also put your name on our Goodlord House of Lords Wall in our office. *(just drop us a quick call before so we can put the kettle on.)
· Invest £15,000 and get
A unique Goodlord Apple Watch. This watch will be programmed to send you weekly updates on the progress of Goodlord, including sign-up stats and growth volumes. We want you to join us on the journey.
This company is offering both A and B shares. If you invest £5,000 or more you will receive A-shares which have full voting rights. If you invest less than £5,000 you will receive B-shares which have no voting rights or pre-emption.
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