Landlords urged to consider PropTech to save cash
Tuesday 15 May 2018
Buy-to-let landlords are being urged to seriously consider how they can recoup costs to help pay for higher letting agents fees.
Many letting agents are likely to review their charges once fees to tenants are banned next year, and it is expected this will put pressure on what landlords are charges.
The government estimates that the collective cost to landlords in the first year of the ban’s operation will be £82.9m, while caps on security and holding deposits, also due next year, could cost landlords a further £1.3m.
PropTech startup RentalStep is advising landlords to consider their monthly outgoings and start shopping around for products that could save them money.
Mike Georgeson, founder and chief executive of RentalStep, said: “It’s time for landlords to evaluate their options to ensure the new law doesn't have a negative impact on their property business.
“It’s clear from the government’s figures that the post-fees ban landscape is likely to be an expensive one for landlords at a time when the cost of letting a property has never been higher.
“That's why landlords need to shop around and explore alternative options to make sure they are getting value for money when it comes to necessary services such as tenant referencing and property advertising.”
The PropTech entrepreneur added: “Products that utilise technology effectively can provide more efficient and time-saving processes at a lower cost than many traditional options.
“The rental market is changing at a rapid pace and if landlords want to remain successful, they need to find solutions that can help them to keep their properties occupied for a lower cost.”
It is widely anticipated that the additional cost to landlords will come in the form of higher management fees from letting agents looking to replace lost income.
The government’s impact assessment estimates that the cost to letting agents in the first year of the ban will be upwards of £157m.
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