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Case study: Opago partnered with Leufroy from 2020, starting with managing flexible lettings, maintenance, and housekeeping. Success in these areas led to a long-term partnership with the property developers, and the two companies have enjoyed a successful two years, working together to achieve key business objectives. In all, Opago has worked on over 250 units for Leufroy in the last two years.
This case study shows how the two worked together, maximising Leufroy’s yields and minimising their outgoings.
Who Are Leufroy?
Founded in London, Leufroy is a successful development and investment company, working in the capital for more than seven years. Their focus on building key relationships has stood them in good stead, allowing them to source first-class properties before they reach the open market.
Looking after more than £200m in property assets, their success is clear to see. They work with family offices, institutional investors, and private clients, helping each to achieve superior returns on their portfolios. Based in London, their developments range from new build flats to mixed-use commercial and residential developments.
Their goal of delivering fantastic returns and a hands-off approach to clients aligns with Opago’s values, and this was one of the reasons that the two decided to join forces.
The Challenge
Three stark challenges were facing Leufroy – rising costs, stagnant yields, and long wait times for maintenance and compliance services. Below, we explore each in more detail to paint a better picture of the organisation’s position before the partnership.
Rising overheads have been a challenge for property owners across London, especially in recent times. These costs, typically headed by soaring energy prices, are affecting businesses regardless of the sector they work in. In 2022, the Office for National Statistics reported that 41% of businesses had seen a rise in the price of their goods and services.
However, this was also the case in 2020 before Opago stepped in. High costs were born from companies attempting to fight the early stages of the COVID-19 pandemic and these have carried on since.
Next, stagnant yields have previously caused real issues for Leufroy. Despite London’s property market being one of the most competitive in the world, the cost of living is changing how people rent. In 2022, Rightmove reported that the year-on-year amount of tenants choosing to renew tenancies had risen by 11%. A static market isn’t good news for any property owner, and this has caused voids across the capital.
The UK’s Rental Index data did some research into void properties in 2021. They found that, on average, landlords lost £847 per month when units stood empty. This was before the surge in pricing that we’ve experienced, so the true cost for property managers is likely to be even more.
Finally, longer-than-expected waits for maintenance and compliance services can cause guest dissatisfaction. The English Housing Survey found that under normal circumstances, tenants wait an average of 41 days for property repairs. This includes serious issues, such as damp, loss of heating, and water leaks, all of which can be catastrophic to both tenants and the units in which they reside.
Getting on top of this is a challenge, and reliability is required to keep guest satisfaction high. If homes cannot be repaired, maintained, and kept in compliance, guests are likely to look elsewhere. This final challenge, fostering high levels of satisfaction with reliable services, is key to retaining tenants – this formed the basis of Leufroy’s partnership with Opago.
Solution
In working together, Opago and Leufroy have made great strides. The combination of first-class properties and outstanding operations has provided guests with everything they need. Opago’s peerless flexible lettings management, maintenance, and housekeeping services have boosted the properties on offer from Leufroy, and we’re now going to explore how it’s happened.
First, we’ll look at how Leufroy’s finances have changed compared to the period before they joined forces with Opago. Due to managing multiple contractors with their own contracts, Leufroy had to assign a manager and an assistant to reconcile everything. This took up a full day for each employee, but now that they’re working with Opago, the reconciliation takes just an hour a week.
Alongside the savings made on services, the real value comes in how Leufroy interacts with its clients. Improved housekeeping, maintenance, and flexible letting management from Opago has improved occupancy rates across the board. Before Opago came on board, Leufroy’s typical occupancy rate was around 85%, whereas it now sits at more than 95%.
Next, we look at how Opago has tackled the issue of stagnant yields. As above, occupancy has improved by 15%, and this isn’t a coincidence. The introduction of first-class services has been massive, but it’s the introduction of flexible letting that has accelerated traffic to Leufroy properties and optimised their yield.
Flexible renting is known in the ecosystem for boosting yields, with increases often between 30 and 40% for property owners. This increase in average daily rates is huge for property owners, and it gives an excellent return on investment for Leufroy and its portfolio, whilst staying within the 90 day short-let period. This innovation has been transformative for tenants and property managers alike, all while improving the yield for the client.
Looking at Leufroy specifically, these lets have been ideal for filling short-term voids. Previously, clients would walk a single route – assured shorthold tenancies, typically lasting 12 months. Now, there’s an option for month-long tenancies in high-quality properties. As a result, Leufroy’s void levels have fallen and yields have risen by almost 40% across the board.
Finally, we look at how Opago’s maintenance and compliance works have boosted guest satisfaction and freed up the Leufroy team’s time. Opago’s bespoke integrated services have taken all the pressure off Leufroy, allowing them to fully focus on investing in first-class properties in Prime London areas. Retentions are up, with contracts now lasting for 1.8 years, rather than for one year, and this further shows the impact that these services have had on satisfaction amongst tenants.
Neither maintenance nor compliance are easy jobs. Leufroy handed over the work to Opago and focused on what they’re good at. This is a great example of how outsourcing can be a benefit to companies that don’t have the expertise required to do the required work. Companies across London excel at buying properties or choosing units in fantastic locations, but without a partner to rely on, their aspirations are limited. Leufroy aimed higher by choosing Opago, and companies in the capital can do the same.
What Does the Leufroy Team Think?
Max Skipworth-Button, Partner at Leufroy, said: “Partnering with Opago has streamlined our management structure. Their work gives us the freedom to focus on what we’re best at – investing and developing London properties and forging valuable relationships with our partners. We’re delighted to have them on board, and we’re excited for what the future holds.”
Erskine Berry, Managing Director at Opago, said: “Ever since we started working with Leufroy, we could see that it would be a valuable relationship for both sides. The last few years have seen us achieve great things, and it’s been a joy to work with a like-minded team in terms of who they want to work with, what they want to achieve, and how they want to operate. Here’s to many more years of working together!”
How Can You Benefit from Opago’s Services?
As you can see from the case study above, Opago’s services have made a tangible difference to Leufroy, its portfolio, and its processes. These results aren’t a one off, and property managers across the capital can benefit from similar results with a partnership.
Our experience in the industry, cutting-edge technology, and first-class workforce leave us perfectly positioned to provide property management solutions that allow companies to grow effectively. Our goal is to help you scale at twice the speed with half the risk – we take care of everything and allow you to focus on what matters most.
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