The Landlord Dilemma: Online Letting Agents vs Traditional Letting Agents
Traditional industries, such as real estate and letting, are slowly but steadily undergoing a change. Urban dwellers – both those who want to let their flat and those looking for one to rent. They are constantly searching for more efficient ways to fulfil their property needs. Because of this reason, the market is now split between traditional and online letting agents services. It is promising to bring more transparency, flexibility and efficiency to the letting industry.
Traditional Letting Agents
Normally, traditional letting agents have been the ones to give introductory services to the landlords. Also administrating legal procedures, collecting rent and managing the property. Services ranging from finding tenants for the property and preparing the lease agreement to hire a plumber. This would be included in the total cost of the deal. All of this would be managed through a physically present local agent, who would keep in touch with the landlord as well as with the tenants.
A need for Landlords are Increasing
As the real estate market in urban areas is growing, the needs of landlords are increasing together. With the number of properties they rent and the distance between their place of residence and the property. Trying to catch up with their customers’ needs and keeping stable profits is a difficult task to traditional letting agencies. On average, letting agencies in the UK charge approx. £300 for administrative procedures. Bad press related to this and other fees has been a threat to letting agents’ reputation for years.
Online letting agents services
Online letting agencies offer the same service package as traditional letting agents but with more flexibility. Reneza, a personalized letting agent, is a perfect example of how online agencies can revolutionize letting industry. Reneza guides landlords throughout letting process from free tenant search to full property management completely online. Its interactive platform is designed to notify landlords every time there are new updates about their properties. And to provide them with detailed reports on their rent progress, ensuring the highest possible level of transparency.
Comparing traditional letting agents vs online letting agents
In comparison to traditional letting, online letting offers a more individual approach. Which allows different types of landlords to purchase specific services tailored for their needs. By using Renezas’ property management platform, landlords get access to a wide range of services but are not obliged to buy all of them. The platform allows saving money by choosing the necessary and personalized services only.
At the same time, online doesn’t mean that it can help only with the issues that can be figured out on the web. Every situation that requires the presence of a local representative can be solved as quickly as it would if it was dealt through a tradition letting agent. Reneza’s ARLA qualified team are on standby 24/7 and represent the company in every location where the users have rented their property. The team is responsible for everything from calling the handyman to dealing with any other issues that emerge. The interactive platform allows tracking the processes real-time.
The same principle applies to property inspection. By default, Reneza inspects property every 6 months after the property is rented, giving a detailed report to the landlord each time. All the reports can be found in Reneza’s app. This especially comes in handy for those property owners who rent several flats or houses at the same time.
What are the advantages of choosing the online letting agents
By choosing an online letting agent, landlords can significantly cut expenses on property management. While traditional letting agents on average charge as much as 12% per cent for full property management. Online solutions can help to reduce these costs by choosing only the services needed for a specific property and avoiding markups. Landlords can trust Reneza’s property maintenance team with solving the problems that might emerge on the property. The team consists of selected professional partners and the platform. Doesn’t add markups for helping to facilitate timely service.
One of the many services provided by letting agencies is legal support and contracts related advice. Traditionally, this service has been considered to be costly and online agencies has set to change this. Free of charge and transparent legal advice is yet one more reason landlords trust Reneza with their property management. Contracts that include rental agreements and deposits will be sorted out by Reneza quickly and painlessly.
All in all
Lastly, online letting agents offer the industry pace and responsiveness that is so necessary in rushing modern world. Using an online platform, landlords don’t need to wait for a call or an email from their agent to get the latest news. Reneza’s user-friendly app sends instant notifications with news about their properties. They also have messages and reminders about upcoming events.
Online estate agents are set to reach 15-20% of market share by 2020. A significant growth compared to the current estimate of 7%. While traditional letting agents will still be present, it’s going to be increasingly more difficult for them to catch up with the innovative services provided by online agencies. However, the competition will benefit the landlords, giving them a wider spectrum of options and services to choose from.