A new agency - which describes itself as a “disruptor company” - says it will charge an all-in lettings and management fee of 6%.
The agency is called Cohab and it set up by Roger Southam, a major figure in the block management sector and the former owner of residential property management firm Chainbow.
He says of his new venture: “This is just what the residential lettings market needs. For far too long residential landlords have had to put up with exorbitant lettings fees from property agents that can be as high as 20% once tenant finding, management, contract preparation and referencing fees are taken into account.”
He claims Cohab has developed a new technology platform that delivers operational efficiencies and drives down costs. And he describes the operation as an “excellent and innovative software platform together with US-style efficient property show-round techniques that drive efficiencies and allow us to disrupt the market with our 6% all-in fee.”
Cohab has an ambitious expansion programme, stating that it will have over 100 properties on its books within the next two months with a target of 1,000 units in its first year and 30,000 in the next two to three years.
“Initially we are doing deals with landlords on single units and blocks of flats but our goal is to target the major Build-to-Rent landlords over the next couple of years … with the change to a Labour Government one wonders what further costs the new administration is likely to load onto landlords in the coming years; therefore any benefit that landlords can obtain is vital. Cohab is here to deliver a first-class service, offering great value.”
Southam established Chainbow in 1989 specialising in commercial property asset management and residential block management before selling the company to Savills in 2016 where he was a director until 2018. He is a Freeman of the City of London and a Liveryman and was subsequently Master of the Worshipful Company of Chartered Surveyors. He has also sat on various RICS and Government advisory groups.
You can see the agency’s website here.
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Disruptor, eh?🤔 Come back in two years and tell us that! 😉
They won’t be here in 2 years
With so little available property outside of London, most agents are dropping down to 6% anyway just to get some money in. This will have to be driven by how good their customer care is I think.
I am torn on this; part of me thinks landlords are cutting costs and so this may gain traction; stack 'em high and sell it cheap could work. The other part thinks simply being cheap isnt't really that disruptive enough.
1000 units in 12 months is what, 80 lets a month. Unless of course they are just going after existing properties under management, maybe using existing data from Chainbow days? And how many PM's do they need for 1000 units? 100 units per PM??
Roger is a smart guy, so I am sure that this will turn a profit BUT from an agents perspective, the last thing we bloody need is a further attempt to race to the bottom for fees....
Why is ‘disruption’ inevitably linked to low fees. Yaaaaawn. We also know very well that building and operating a tech platform is not cheap- and devs cost a lot more than negs & PM’s.
I’m waiting for the day an agent launches a bona fide end-to-end tech solution that is amazing- but charges market rate or higher. When that happens, Ill be genuinely concerned.
30K! Only if they plan to acquire at a rate/scale akin to Lomond.
So a quick look at the cohab website and…..
No EPC’s
No Tenant Fee info
No essential information
No CMP certificate
No complaints process
Why don’t other agents do it this cheap? Hmmmmmm I wonder.
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