The letting fee ban has been on the lips of nearly everyone in the property industry lately. It’s hard to go a day without seeing a new headline about the impending U.K. legislation, with scaremongering and worried anticipation looming throughout.
A solution is already available to the property market, allowing agencies to prepare for the ban by taking advantage of a wealth of efficiency. Proptech grants the ability for agencies to recoup costs without having to reduce the number of employees or spend large sums of money.
Research shows that the majority of property and letting professionals are already on the side of proptech. In the Fixflo Report 2017, 68% of respondents said their preferred method of reporting repairs was either email or a dedicated online repair software. The property industry is leaning toward technology – and perhaps doesn’t even realise it.
Not only does proptech offer cost-savings benefits, but it also adds efficiency to almost every part of the lettings process. For example, take property inspections: users of property inventory and inspection app Imfuna report that they save up to 75% of the time it takes to produce a report, from inspection to final report distribution. This represents a massive benefit to property professionals, who can allocate the additional time to other parts of their business.
Lettings Agents that currently outsource their inspections also stand to benefit from property inspection software, allowing them to recoup what can be expensive fees: a U.K. government consultation revealed that inventory reports can cost tenants up to £216, with a portion of that fee going to letting agents.
The fee ban poses a huge threat to many letting agencies in the U.K., but there is a variety of proptech solutions to suit businesses of all sizes and specialisations. The legislation is currently being drafted, which means there is still time to adopt property technology and integrate it into current business models before the measures take effect.
The clock is ticking, but will the alarm go off in time for Letting Agencies to beat the letting fee ban?