Both letting and estate agents play a vitally important role in society. They are the connector between landlords and tenants or buyers, and they’re also the first person a tenant will call when something goes wrong. However, technological innovations and a changing regulatory environment both have the potential to shape the future of these roles.
The Influence of PropTech
Throughout the last 10-15 years, the property technology sector has expanded massively, resulting in many letting agent tasks now being automated. One prominent example is the rise of online estate agents that offer people a way to sell their houses without going through the traditional estate agent process. These platforms claim to complete the sales process significantly quicker than the average estate agent, with 75% of listed properties being sold within a 30-day period.
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Another example is real estate management all-in-one solutions. Tools exist now that allow landlords to advertise properties, screen potential tenants, collect rent, and schedule maintenance all from one place for a small monthly fee. While not all landlords will choose to manage things on their own like this, it does pose a threat to letting agents who have traditionally handled all of these things for the landlord.
Even the process of showing potential tenants or buyers a property or undertaking periodic inspections has technological solutions now. These walkthroughs can take place remotely, with tenants walking around with a camera or a potential buyer looking through the house when they’re not in the same city or even country.
Regulatory Changes and Professional Development
Letting and estate agents also have to keep a close eye on regulatory changes, as you never know how things will change. A good example from the UK is the Tenant Fees Act, which came into effect in 2019. This act prevented agents from charging fees for things like reference checks, inventories, and administrative tasks previously charged to tenants. This affected some of their main revenue streams and forced them to diversify their business model.
Source: Pexels.
Similarly, there has been a broader shift towards strengthening tenant rights. New regulations have clarified responsibilities regarding things like deposit protection and property repairs, and it’s up to the estate agent to make sure they’re following all the rules. A failure to do so could see big penalties.
With all of these changes, letting and estate agents should focus on professional development and up-skilling. They will still have an important role to play, but they may need to demonstrate to landlords exactly how much value they can provide. Whether it’s getting the best price for a property sale or finding the best tenants and keeping ongoing costs low, the focus should be on showing landlords what they’ll be missing without you.
It’s hard to imagine a future where real estate agents are no longer needed, but there’s no doubt that their roles and responsibilities will continue to change. Instead of fighting change, embrace it. Learn how to master the new technology that’s coming out and how to use the changing regulations to your advantage. The agents who can figure out these things will be the ones who succeed.
