For sellers

NewEstate expands rapidly into the Sofia Lettings Agency market.

09 February 11

The past 9 months have seen exponential growth for NewEstate following a strategic decision to become market leader for foreign landlords in Bulgaria’s capital, Sofia. Total investment has topped 75,000 Euros, however the portfolio of properties that are let and under management has grown by 800%, thus repaying the initial investment within the first 6 months of operation.

NewEstate has grown this venture by not only offering professional service at low prices, but also by offering free furniture to landlords, then recouping its cost from the subsequent rental income. No other company offers such a product and as such landlords have been keen to sign up. Unlike rival companies, is not interested in charging for marketing or the listing properties; the fundamental philosophy is that the owner has paid for the property, now the property should pay for itself.  Tenants are sourced at the market price though the lettings division, placed, then the rental income pays off any repairs, furniture, kitchen etc. The alternative is for the owner / landlord to invest thousands of euros in the purchase of such items to make their apartment rentable, a risk that few are willing to take given the current economic climate and percentage of negative equity that most find themselves in.

NewEstate is able to mitigate this risk by having both a lettings company and a furniture importing company within the New Estate Group, thus providing a low cost supply at high economy of scale as well as a direct source of paying tenants.