Anyone heard of LetMe Property Ltd?

Coutts75

We've recently advertised our property for rent and have been approached by LetMe who claim the following:

"LetMe was created to revolutionise the lettings industry by reducing the risk, hassle and cost of renting your property. Landlords get paid 12 months on the day we take the keys, no fees and a guarantee on the property's return condition. LetMe is faster, more efficient and has better financial backing than letting agents. This means we can pass savings on to you, by paying you more overall for your property and paying it to you in advance."

Is it a con? How do they make their money?

Any advice would be much appreciated before we pursue this further.

Many thanks.

antrobus

Coutts75 wrote: »

...Is it a con? How do they make their money?....

I don't think so. Buest guess is that they make their money by charging the ultimate tenant more in rent than they will be paying you in rent.

You have a choice between (a) renting a property through a LA, receiving a gross rent, paying the LA their fee of x% plus VAT, coughing up for any repair bills, taking the risk of default, etc and so forth or (b) receiving a net rent from LetMe.

Incidentally, LetMe is a subsidiary of Richmond Group. Their main business is Amigo Loans, and they seem to make a lot of money out of that.

Pixie5740

I wonder if this is like Northwood Lettings' Rent guarantee scheme where Northwood become your tenant paying you guaranteed but below market rent. Northwood then sublet the property to whoever they can as long as the place is filled and the subtenant is paying rent. Northwood have a reputation for being horrific for the subtenants to deal with. It's also difficult for the landlord to end the tenancy with Northwood because it's a commercial tenancy rather than an AST.

DaftyDuck

Scheme or scam, difficult to choose with some of the more outlandish of these plans. Yes, they'll pay less than market rental, but you will get the cash at first. They will sublet your property, squeeze it full if possible, until it bursts. They may take little care of maintenance or even look to you to foot such bills (when you have no say on how and to whom it is rented). They will fight any rent increase payable to you, while pushing what they get to the limit, and they will fight tooth and nail to not return the property... Which will be clapped lut beyond belief when you get it back in the end.

On the other hand, I have rented a property out in a similar manner to a Housing Collective for four years. They psy up front, they only charge a little more rent, and they deal with basic maintenance the,selves. That one works.

I guess you have to do at least as much due diligence as you would on taking on a tenant.... Probably more.

davidmcn

Pixie5740 wrote: »

It's also difficult for the landlord to end the tenancy with Northwood because it's a commercial tenancy rather than an AST.

Which is also a difficulty if you have a typical BTL mortgage which requires only AST/SAT tenancies.

theartfullodger

I wouldn;t trust this lot with my worst enemy, let alone an investment property.

Amigo loans company is behind it.

Letme property Limited (not ltd) has never filed accounts, share capital of £1 so if things go 'orribly wrong they only have to pay out £1. (Agree the owner may decide to pay more).
https://beta.companieshouse.gov.uk/company/09462594/filing-history
- but landlord may be tied in for 2, 3 years...

There is no evidence in Richmond Group's accounts that I can find of the £180m backing they claim (there may be ..)

They offer tenancies with

No upfront rent, no upfront fees, no deposit needed

(but require a guarantor - like Amigo loans).. Now, what sort of occupant will you get as a landlord eh?? e.g.
http://www.letme.com/Property/Detail/P-FWVn9QZfAp/A-okogVkhw27

davidmcn

theartfullodger wrote: »

share capital of £1 so if things go 'orribly wrong they only have to pay out £1. (Agree the owner may decide to pay more).

Not disputing your caution about the company in general, but share capital isn't an indicator of what assets the company will have at the time you sue them.

Coutts75

Thank you all for your replies. I think I may probe them further but with some caution. Could all work out fine........

theartfullodger

Coutts75 wrote: »

......LetMe is faster, more efficient and has better financial backing than letting agents. ........

Well, they took over 2.5 hrs to get back to me: My current agent does better than that...

5hp

Coutts75 wrote: »

Thank you all for your replies. I think I may probe them further but with some caution. Could all work out fine........

Did you probe them, what are your thoughts?

Thanks