Meet Ben: the accidental landlord who set up a business to support UK rental properties

• Business name: Factored

• Industry: Property and finance 

• Founded in: 2023

• Top business product: Business bank account

• Key learning: “Try and find a financial product that makes your money work a bit harder.”

Last year, the government confirmed that all UK rental properties must have an Energy Performance Certificate (EPC) rating of C or above by 2030. 

This should improve the energy efficiency and quality of rental homes, but it means that many properties will need funding to reach this rating. That’s where Ben Schuldenfrei and his business, Factored, can help. 

Here, he discusses his business journey and Factored’s ambitious plans for reaching as many landlords as possible.  

What motivated you to start your business and what was the initial vision? 

Well, I experienced the problem I’m trying to solve firsthand. I’m what is known as an ‘accidental landlord’ as when I moved to my family home, I had a previous property that I couldn’t sell in time. So I had to hold onto it and then it became a rental property. 

Years later, I needed £10,000 to quickly fix a leaking bathroom. It was causing damage to the neighbour's ceiling and my tenant couldn’t use the bathroom, so it was urgent. Unfortunately, when I went to my mortgage lender they couldn’t give me any more money because having a newborn son meant I didn’t pass the affordability criteria.

However, my background is in finance so I know about receivables financing, revenue-based funding and invoice factoring. I was frustrated that I had an income-stream from the tenant paying monthly rent, but I couldn’t access it upfront for my immediate needs. That’s why I decided to set up Factored in 2023 so I could help landlords to sell their future rent. 

Did you always want to set up your own company?

Setting up the business was quite organic. I had the idea during a career break and it just felt like the perfect time to give the business a go. 

What were the initial challenges for Factored? 

The main challenge was getting funding to start the business. I wasn’t in the position where I could go without a salary, so I had to raise equity investment. This was a significant challenge - and you have to be resilient - but we managed to do it by raising money from Angel investors and Venture capital.

Do you run the business on your own? 

I have a co-founder who is a childhood friend. We went to school together and I reached out to him asking for his advice because he comes from a Proptech background whereas I’m more Fintech. I showed him my pitch deck and he loved the idea, so we teamed up. We also have a part-time developer and a salesperson. 

How did you determine the initial budget for the business? 

I did it myself. I set up an Excel spreadsheet, and then post-funding I created a Xero account to manage finances. 

Were there any other financial products that supported your business? 

I set up a Revolut Business Account after doing some research online. It had a quick application process and it was free with great features like invoicing, so it came out on top for me. I’m a Revolut customer for my personal banking, so it made sense to stick with them.

I also got employers’ liability insurance from Simply Business, which I found through comparing other providers and their costs. Simply Business was one of the cheapest and the cover included everything I needed. 

Are there any financial products that you wish you’d known about sooner? 

A business bank account that pays a competitive interest rate. Try and find something that makes your money work a bit harder. 

What’s next for your business? 

The next steps are to scale. All rental properties must achieve a minimum EPC grade of C by 2030, so that’s a huge challenge for many landlords. It’s going to cost billions in funding to upgrade these properties. This is known as retrofit as you take an old property and add insulation, solar panels and heat pumps. But the biggest barrier to improving a property is the upfront cost needed. Not all landlords have savings, but that’s where Factored comes in. 

Our plan is to accelerate the business so we can support landlords to improve energy efficiencies and living conditions in as many rental properties as possible. 

What has been the feedback so far from your clients? 

The feedback has been really positive and our clients are impressed with our speed. We operate 24/7, so there’s no downtime. We work weekends and in the evenings. 

What would you say to someone who is thinking about starting a business? 

I would say - give it a go! You’re always going to regret the shots that you don’t take. 

This case study is for informational purposes only and is not intended as financial or professional advice. The results described are specific to the individual's personal experience, so please consult with a qualified professional if you need financial advice.