In the UK, over £50 billion of rent is collected annually, with lettings fees equating to up to 25% of rental income per year, landlords are increasingly looking for new options in the market.
With over three-quarters of the rental market controlled by high-street agents, Mashroom is working to change the mentality around rental transactions and remove the dependency on letting estate agents.
Raised €4.4 million
Based out of London, Mashroom is a unique end-to-end property letting platform that benefits both landlords and tenants. The proptech startup has secured 4 million GBP (approx €4.4 million) from BBB’s Future Fund and current investors. This brings the total funding to 7 million GBP (approx €7.7 million).
This funding will help the company accelerate its growth and invest in further enhancing the platform.
What makes Mashroom unique?
The UK proptech startup goes beyond the tenant-finding service and incorporates the entire rental lifecycle all under one roof, from property advertising, arranging viewings, credit history checks, maintenance, to end of tenancy, and handling potential disputes between landlords and tenants.
The self-service platform also allows landlords to list their property and for tenants to rent it easily. As per the company claims, the whole tedious process takes less than 2 hours since the platform allows users to sign rental agreements and renew contracts online in a few clicks. On top of that, the platform also supports open banking technology to make a rental payment easy and seamless.
Deposit Replacement Product
An alternative to traditional deposit – ‘Deposit Replacement Product’, let tenants simply pay one week’s rent as protection than a regular deposit. The company says it reduces the cash burden for tenants as they don’t have to front the deposit and lock it away for the duration of the tenancy.
You get rewards
This platform also connects departing tenants with incoming tenants directly to shows the property. On a successful let outgoing tenants receive a reward of one week’s worth of rent for their efforts. Notably, the cost for landlords is approx. 2% of the annual rental income which is more than 5x cheaper than average letting agent fees.
Mashroom revenue model
Founded in 2018 by Stepan Dobrovolskiy, Mashroom is a full-stack residential property platform! Right now the basic service is free for tenants and landlords whilst the company covers its costs via its financial products offering which includes deposit replacement, advance rent, and insurance products.
Main image credit: Mashroom