It is such an honour to receive your investment in us through RentGuard 1st Equity Fundraising in April 2020. RentGuard would like to thank all our investors for the faith, trust and support that you’ve given to us 🙏
Financial results: (1st July 2019 – 30th June 2020)
The company continued to record strong growth in rental revenue, it was more than RM 30, 000 compared to previous RM 1,720.60 . But, we are having a tough time in property agencies revenue. Some customers discontinued or delayed the system subscription fees, due to very soft property market sentiment (less property transaction for them). In addition, Covid-19 pandemic caused MCO started on 18th March 2020. There is nearly zero transaction for property agencies during MCO period. The Agency fees decreased to RM 56, 000, compared with the previous RM 96, 300. Audited report will be available to shareholders before Annual General Meeting in October which will be set later this year.
Covid-19 Pandemic :
Covid-19 recession is slowing down properties transaction which impacted our property agencies customers badly. Therefore, we are offering Ebooking system to customers with zero fees till 30th June 2021, assisting them to get back on feet. This not only revive those discontinued clients, it also helps us to capture market share with a much faster pace. Please refer to our zero fees relief for property agencies :
However, there are more people renting properties or rooms as essential staying place. Rental cases are growing in strong demands. The management decided to shift our focus onto rental cases. From now onwards, our revenue will be derived from rental collection fees, utilities collection, Etenancy and others personalised rental management service.
Government support :
RentGuard has been elected to participate Cradle Funded Coach & Growth Programme for 1+1 year. The company is currently apply Technology Startups Funding Relief Facility from MDV. It is loan with interest rates up to 3.5%.
When we started our property investment and management business a decade ago, the best profit margin was always derived from housing price gain. It changed drastically since then. Millennial are no longer buying into home ownership.
Read this from CNBC: The homeownership rate among millennials, ages 25 to 34, is around 8 percentage points lower than it was for Gen Xers and baby boomers when they were in the same age group. Student loans are one of the factors at play in deciding to put off settling down. Aug 30, 2019.
Couple of years ago, we saw the sharing economy boost very well for cars (Uber/Grab), bicycles (OFO), smart devices, even short stay property (Airbnb). Some of them have experienced bubble bursts from its peak. However, this is not the end of it. In fact, this is just starting, credit to millennial are fueling the rental economy (opposite to ownership).
Read this from the World Economy Forum:
Rental Market is NOW and Future
The business model of property investment is shifting towards the rental market, regardless of short-stay renting (tourism/business trip), room renting and full house rent.
It happens in Malaysia as well. Refer to Khazanah Research Institute, Home ownership started to decline every year since 2014. 2018, more than 2mil rentable units nationwide, with more than 50% are in Klang Valley. By an average of 4 people staying in a unit, it housed min 4mil tenants in Klang Valley. The tenants numbers are still growing due to housing affordability and Millennial rental economy. And that is the exact Rentguard direction or business route map, by tapping digital solutions in the rental market.
One Metric That Matters – RENTAL
Current financial year, RentGuard business key strategy is to focus on rental cases and generate revenue from them (such as rental collection and utilities collection). Therefore, tracking gross rental values (GRV) is crucial for our revenue generation. Our latest GRV has increased more than 4.5X, compare with GRV as on 31st Dec 2019.
RentGuard is processing more than RM2.6mil rental per year now. The management is still committed to grow both rental cases and GRV, targeting more than RM10mil GRV by the end of 31st December 2020. Our system has continued strong growth in Agents users and accumulation of property transaction data. We can easily reached 2500 agents (10% of property agents in Malaysia) and more than 10,000 cases in 2020. These traction are crucial for our future monetization plan. In addition, they also contribute to rental business indirectly.
Talents and What’s next?
In order to fuel our growth and implementing key strategy in rental market, a new business development executive (BDE) has joined us from 13th July 2020. Li Wen was RentGuard previous intern in 2017. We do believe her abilities and attitude can contribute the company next stage of growth.
Meanwhile, we are still struggling in searching for a full stack developer and junior programmer since this April. Despite constraint resources, the tech team still manages to complete the integration between agency system and rental collection system during MCO.
Utilities collection features have been developed since then and expected to be fully lived in August. The team is now working on digital signing integration with Securemetric (Listed on ACE Market) and looking to launch it in property agency offer letters and later in ETenancy.
A small gift from us
We are currently offering at least 3 Months rental collection with totally ZERO fees. It is regardless of location and rental amount. Our team will be getting in touch with you shortly after you register with the link below:
Meanwhile, RentGuard will do our best to grow the company and be the leading PropTech Startup in Malaysia. We look forward to achieving the next milestone and sharing this journey with all of you.
Thank you again to invest in us. Here wishing you good health, Stay safe and Stay Healthy! 🙏