A PropTech tool wants landlords to manage their own properties and is accusing agents of being likely to increase charges to property owners when the fees ban kicks in.
The online property management service Rentora claims to charge “less than half the average letting agent fee” and includes tools to try to avoid tenants falling behind on rent, including a link with credit reporting giant Experian to encourage prompt rent payment.
“We only charge five per cent of rent payments, for which price you get access to the full Rentora toolbox. The average cost for a letting agent, on the other hand, is currently around 12 per cent and we expect it to be closer to 18 per cent from June” claims Rentora chief executive John Wade, who initially built the platform to help manage his own properties.
He says:“Budgets are so tight for many landlords that rising agency fees will push them into loss-making territory. Many landlords are going to have to consider managing properties themselves.”
Wade says payments from tenants using his system go direct to landlords, who can set automated text and email notifications for things such as rent due dates, rent payment alerts or key dates like gas checks.
There is also fully encrypted online storage for paperwork and contract templates.
The tool also allows tenants to pay in chunks during the month and family members to contribute.
“Some tenants find it easier to pay in smaller weekly chunks or as they are paid. Some want to build up credit in the months leading up to Christmas so that they can take a month off, knowing the bill is already paid. And the facility for others to contribute can be helpful for parents and grandparents wanting to make contributions” he adds.