Electronic payment systems 'must be sold to all tenants'

Electronic payment systems are only cost-effective for lettings businesses if they are heavily marketed to, and adopted by, the agent’s full range of tenants.

The warning comes from Richard Davies, Chesterton Humberts’ head of lettings.

He said the major benefit to agents is not cost savings so much as less stress in securing the tenancy.

His firm has operated its own electronic payment system for two years and saved around £25,000 in bank charges. Foxtons recently adopted a new system and reckons it will save £50,000 a year in bank charges.

But Davies said: “There are some compelling advantages to electronic rental payment systems for agents and tenants, but making a success of these systems is heavily dependent on the system adopted and how the concept is marketed.
 
“For agents, the system must be integrated into the company’s financial infrastructure to derive maximum benefit, including reduction of banking charges. 

“Higher net worth, time-poor tenants may look for companies offering electronic systems, but unless the system is sold into and adopted by the full range of an agency’s tenants, it may not be cost effective.
 
“Getting tenancy paperwork signed by electronic signature is efficient, easy and environmentally friendly, as it does away with paper printing. Access to computers and the internet is so far-reaching in today’s society that signing electronically is a reliable and modern alternative to paper, pens and post.

“Added benefits include no lost contracts in the post causing delays and security fears, or having to sign in front of a witness.

“The method is secure, as documents are accessed via encrypted links and the recipient has to create a log-in and password. When documents are signed and completed they can be viewed via the web, so there is no need for copies and back-ups or risk of losing original contracts.
 
“At Chesterton Humberts, we have been using Agreement Express by Recombo for almost two years and it has reduced the time taken for paperwork to be returned, lowering the anxiety levels of landlords and tenants alike. 

“While the cost savings are significant, easing the stress of securing a tenancy is well worth the investment.”