Nestopia is a one-stop-shop for property rentals, modernising the rental experience to suit and empower the user

Property impacts everyone, whether you are a landlord, tenant or a homeowner. Nestopia aims to simplify life for renters and property owners by eliminating the need for an agent. The company has developed a digital platform that claims to streamline the rental process, providing immediate value to both landlords and tenants.

Industry overview and challenges 

Over the past 20 years, the residential rental market has tripled, and it is suggested that rents will continue to rise until 2026. With many people unable to afford to buy a home, demand for rental housing is expected to remain strong [1]. The UK has the world’s fourth largest rental market by total volume of privately rented homes. There are 29.5 million homes within the current UK property market, of which 30% are privately rented [2]. Nearly half of tenancies in the UK are owned by landlords with five or more properties. In addition, almost half (46%) of all landlords in the UK use an agent for letting services, up from 34% in 2018 [3].

With over two-fifths of both landlords and tenants experiencing issues when renting, the industry needs a change [4]. Many tenants report feeling ignored by their letting agents, with a delayed response time being the most reported issue [5]. Research shows that 30% of people would actively seek an alternative solution after a negative first experience with a letting agency [5]. UK tenants, particularly those in London, are facing growing frustrations with letting agents. Londoners contact their letting agent more than tenants elsewhere and receive the worst service [5].

The Royal Institute of Chartered Surveyors (RICS) claims that there are too many unethical letting agents allowed to practice in the UK, leading renters have come to expect a low level of service [6]. Tenants report that, when dealing with letting agents, they encounter a multitude of problems, including lost deposits, broken agreements, and excessive charges [6]. Furthermore, 89% of tenants report that they have been the victim of unfair and unethical practices perpetrated by letting agents, and 80% demand an improvement in the level of service they provide [7]. Additionally, 16% of tenants and 34% of landlords also stated that letting agents do not follow up on their promises surrounding issues with the other party [4].

Property owners face difficulties maintaining consistency amid rapidly changing market conditions. According to Nestopia, letting agent fees are costly. The basic service of finding tenants for properties typically costs between 80% and 100% of the first month’s rent, and in many cases 20-50% of the second month’s rent. Rent collection services vary from 8% to 12% of the monthly rent, and full property management can cost between 12% and 15% of the monthly rent. In London, these fees can cost up to 20% of the monthly rent [8].

Altogether, Nestopia observes that the current rental system is fraught with dissatisfaction due to high fees, lack of transparency, and poor customer service. Nestopia aims to eliminate the need for intermediary estate agents by empowering both landlords and tenants and streamlining the entire rental process within one platform.

Introducing Nestopia

Nestopia intends to revolutionise the UK rental market by bridging the gap between landlords and tenants. The digital platform seeks to make rentals easy, efficient and transparent, offering a comprehensive solution to the problems surrounding the current rental system. The platform serves as a one-stop-shop for property rentals, aiming to redefine the rental experience for the modern age. Other key components include direct messaging, a community blog and interactive platform and tenant profiles with prequalification at its core, and a feedback system.

 

How does Nestopia work? 

Nestopia aims to make rentals easy, efficient and transparent. The company believes it simplifies the rental process for landlords and tenants through an integrated subscription-based platform that combines property listings, tenant prequalification, automated lease creation, and comprehensive maintenance services as well as a community for support and interaction, including blogs, podcasts and a community board.

Nestopia is introducing to the market a comprehensive tenant-profile creation capability with the aim of making tenant prequalification easy. According to the company, the platform automates tenant verification, validating income, employment status, and references. Thus, landlords can save time and reduce risk by only engaging with qualified tenants. In addition, tenants will have a Nestopia rating.

The company also offers automated property management tools, allowing landlords to let directly to tenants, market and manage multiple properties, create tenancy agreements, arrange safety certificates, and track rent payments. Additionally, landlords can easily manage maintenance requests, track communication and keep abreast of legislation with real-time legal updates.

Furthermore, the company reports it offers an integrated tradespeople service, which enables landlords and tenants to find, and book, trusted electricians, plumbers and decorators directly on the platform. Integrated people are loaded directly onto the platform. All communication is securely documented, including quotations and booking confirmations.

The company claims Nestopia also appeals to homeowners, not just landlords. Their Home Hub will offer a simple document storage system for various home administration needs, including title deeds and survey reports to pet insurance, MOTs and utility bills – all in one place. It aims to enhance this as AI advances to set reminders for renewals where appropriate and to get quotes from providers.

What’s next for Nestopia?  

As of June 2024, Nestopia is looking to raise SEIS funding. The company aims to establish itself as the premier choice for rental management in the UK. It has chosen to use Floww’s innovative infrastructure to facilitate its funding efforts as it pursues its future goals.

Nestopia plans to finalise its MVP, bolster marketing efforts, launch its go-to-market strategy and initiate expansion plans.

*Floww Markets Limited is a company authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 980098.

The information and imagery contained within this article does not represent the opinions of Floww. Floww does not have a view on opinions provided by Nestopia in this article and elsewhere where they may be expressed, and is not responsible or liable for the information within this article.