PREFERENTAL
Overcoming challenges
“ In order to build the lowest priced solution in the market , I had to control an insurance product , and that was when I found an exceptional insurance partner who helped me design and deliver our very own Preferental Promise , which protects landlords against financial losses from damaged property , rental defaults and eviction costs .”
“ In March 2017 , we launched our business within two months of another PropTech startup that had a similar business concept . Our competitor had raised more funds than we did and had the potential to make it very difficult for us to succeed . However , we made sure our differentiating factor was our Preferental Promise backed by exceptional customer service , something that was lacking in the general property industry . Needless to say we made it through our first five years and have now established ourselves as a true PropTech business .”
“ My focus shifted to creating an environment where both landlord and tenant used the Preferental platform as a safe environment for all things property-related . I set out , from the very beginning , for Preferental to be known as a business that solves problems . Even today , Preferental ’ s difference is that at our core we are still social entrepreneurs who want to add value to South Africans investing in property .”
“ Preferental introduced an entirely new concept to the market , so in the beginning , we faced resistance from some landlords who didn ’ t understand how a virtual property estate agent works and whether they could trust us to manage their most valuable assets . Our focus on providing exceptional customer service paid dividends as almost all our new business comes from referrals through word of mouth .
“ The Covid pandemic presented a unique set of challenges . When we first heard about the lockdown , we knew that this would impact many of the tenants ’ ability to pay rent . Facilitating open communication between the tenant and landlord was key , and we came up with creative solutions and payment plans that worked for everyone . Preferental still provided the landlord cover for the financial risk , and throughout the whole Covid Lockdown period , we only had four tenants who defaulted .”
To add some additional context , since 2017 , Preferental has had a 98 % successful rent collection rate which is remarkable when compared to the 77 % industry average . And this just speaks volumes in terms of how we conduct our tenant screenings and how we manage the risk when tenants don ’ t pay their rent .
Secrets of success
“ As an entrepreneur , I have had to learn many lessons along the way . One of the most important things is to surround yourself with the best people , including business partners , employees , and business mentors . You will face many challenges and doubters when you start out ,