Online letting agents are taking the United Kingdom by storm. Many homeowners in the nation are making the switch from high street to online agent. For sure, London letting agents are seeing an impact.
The minority stake purchased by Savills is testament to the potential in this rising industry. Savills is as a true veteran in the field that has invested into a direct competitor of their own company.
While the Savills procurement is a great example of potential, it does not show the current benefit that online letting agents have on the property rental market, if any.
The plastering of Tepilo, PurpleBricks and HouseSimple adverts up and down the country, always tell detail the multiple benefits. Infinite savings, ease of use and flexibility customers can gain by using their platforms to name a few.
How much of this is true? And how much of this is true for Londoners?
The London property market is responsible for a hefty number of property lettings in the UK. Meaning that these online letting agents should have created options to appease our beloved London residents.
Rent Round Experience
Our platform is a letting agent & property manager comparison site.
Hundreds of London landlords search each day for an agent to manage their rental property.
The data resulting from London landlord searches creates interesting reading. Searches for London letting agents on Rent Round shows both online & traditional agents.
Once a search is conducted and letting agent & property manager fees are compared, landlords can select an agent to contact.
Variety of London Letting Agents
Variety is the spice of life.
However too many options can just become overwhelming and confusing.
The introduction of online letting agents is offering a nice alternative to high street London letting agents. There is competitive pricing and innovative processes.
It’s refreshing to see some healthy competition against the traditional agents.
However, as with any new field, there isn’t just one top player, there are several.
With the emergence of online letting agents, there’s numerous competitors in the field.
So much so that when considering an online letting agent it is difficult to know where to start. The different business models and price points can all be somewhat perplexing.
However it seems that Londoners are embracing rather than opposing the diversity. Nearly 3000 unique searches are made each month for the term “online letting agents” just from the London area alone.
London Landlords & Savings
The unique selling point of each and every online letting agent; their savings.
Nearly all adverts will brandish in big bold lettering “Save XXX amount using our service”, while this is a great statement to make, how much of this is true?
Here at Rent Round, online letting agents are the cheapest, but they may not save you the most money.
The feedback we’ve had nationwide from our landlords, is that there is much more haste from local letting agents when there are vacant rooms or properties and when there are issues with the property.
The quicker the replacement for vacating tenants, the less your rental income is affected.
With local letting agents, each property is important as it counts as a higher % of their revenue.
As such, we’ve seen service level feedback for local agents outweigh feedback for online agents.
On the other hand, online letting agencies such as PurpleBricks have thousands of properties being managed nationwide.
So you’re at risk of being considered a small fish in a big pond.
Letting Agent Rent Commission
If you weren’t aware, the business model for most online letting agents is a fixed price fee.
Meaning that the landlord pays an amount up front and their property is listed as available for rent.
The only flaw in this model when compared to traditional letting agents is that you’re still paying regardless if your property gets filled or not.
This is major difference between the traditional and online business and also the cause of deterrence from the online option.
Properties to rent are nowadays found online, not by contacting letting agents. This means that it is the agent’s responsibility to make sure your rental property can be found on all major property platforms (which is the service that traditional and online agents alike offer).
Availability and Comfort
The hustle and bustle in London can sometimes be intimidating and but important extremely time consuming.
If you observe the average Central London employee, their frantic pace makes it seem as though there isn’t enough time in the day. And there probably isn’t.
It seems the online letting agent industry has seen this and answered the busy landlord prayers.
The online agents pride themselves in creating platforms that are not only cheaper than the traditional kind, but much more convenient to use.
Portals are available to immediately upload your property details which are sent to Zoopla and other leading property advertising sites.
This advantageous feature for the busy individual and can be done 24/7, as opposed to doing the leg work during 9-5 hours traditional letting agents abide by.
So has London benefited from online letting agents? Yes, it’s fair to say Londoners have undoubtedly benefited from the launch of online letting agents.
They’ve flocked in their thousands to give their services a try and the results have been extremely positive.
While we’re way’s away from a complete transition to the online agent, they’re definitely here to stay.
So should you choose an online letting agent, if so who’s the best? Or should you go for a local letting agent?
Rather than doing your own research on costs and performance Rent Round does the leg work for you. It takes 30 seconds to immediately compare both online and traditional letting agents.