South African prop-tech startup Preferental wants to revolutionise the way landlords manage and grow their property portfolios, leveraging cutting-edge technology and expert support to help users manage their properties with ease and efficiency.
Formed in 2017 by Ross Fitzcharles, Preferental has developed a service – called Preferental Promise – that offers landlords a guaranteed rental payment on the first of each month, even in case of rental default, and protection against property damage, as well as coverage of legal fees for eviction.
Fitzcharles claimed the service is 75 per cent cheaper than traditional estate agents, allowing landlords to save money and focus on growing their property portfolios.
“Our platform also provides advanced property advertising and tenant screening features, allowing landlords to list their properties on the five largest listing portals in South Africa at a fraction of the cost they would pay if they used the portals directly. This allows them to reach a larger audience and increase their chances of finding the perfect tenant,” he said.
“Additionally, our platform also provides instant lead notifications, a lead management dashboard, direct social media sharing, and instant WhatsApp replies. In short, Preferental empowers landlords to take control of their property portfolios with a comprehensive solution that saves them time and money. With our platform, landlords can relax knowing that their properties are in good hands while they focus on growing their portfolios.”
Growth has been steady. Preferental’s portfolio size is currently just over ZAR1 billion (US$57.5 million) of Assets Under Management, and it has doubled its property portfolio each year since its inception.
In 2021, the startup secured venture capital funding through Imvelo Ventures, a Sandton-based VC firm, which enabled it to continue to grow and expand its offerings and technology to landlords. Fitzcharles said the company is currently in discussions with several large banking groups to provide its services to their client bases.
“This is a testament to the company’s reputation for providing innovative and reliable property management solutions. With a strong focus on technology and innovation, Preferental is well-positioned to become the leading property management platform in South Africa over the next few years,” he said.
It has started moves into international markets as well, however.
“We also manage properties for landlords located in international markets such as Canada, New Zealand, Belgium, Australia, Dubai, the United Kingdom, and Ireland. Our platform simplifies complex processes, making property management more efficient for landlords regardless of location,” said Fitzcharles.
In addition to its current offerings, the startup plans to expand its services in the South African market, for which it would need to raise additional funds.
“Our goal is to take our innovative and reliable platform internationally through our partner network and strategic acquisition opportunities. This will enable us to continue to provide landlords with the tools and support they need to manage and grow their property portfolios effectively on a global scale,” Fitzcharles said.
Preferental generates revenue through a platform fee that landlords pay monthly, as well as by selling individual, one-off services such as property listings, photography and tenant screenings.
“Additionally, our flagship service, the Preferental Promise, provides landlords with protection against tenant defaults, property damages and eviction fees, further contributing to our revenue streams.
In 2023, we will launch a marketplace where our network partners can provide additional property-related services to our landlords, earning a commission on the leads provided. This will enable us to diversify our revenue streams and provide landlords with a one-stop shop for all their property management needs,” said Fitzcharles.
