The savviest estate agents will already be lining up new revenue streams to replace potential losses after the new Tenants Fees Bill comes into force later this year, according to Helpthemove founder Stephen Henesy.
The new law which bans letting fees for tenants comes into force on 1 June 2019 and will see an end to admin fees such as credit check, tenancy renewal and referencing fees.
According to Government analysis, renters pay on average between £200 and £300 in letting fees during each tenancy.
Helpthemove founder Stephen Henesy feels there a number of ways to replace some of the potentially lost revenue and the new law may even benefit traditional agents as those at the cheapest end of the market may be forced to raise their prices.
Stephen said: “The most forward-thinking agents are looking at partnerships that enable them to reduce their own onerous and expensive administrative work with outsourced services which can also generate new revenue streams.
“The average sized letting agent could be looking at new revenue streams of well over £10,000 per year by partnering with a void property utilities management service like ourselves which will take care of switching utilities suppliers when a property is vacant.
“Along with commissions to be earned from associated services, such as insurance and legals, void utilities switching can also be sold as a positive benefit to new tenants who should be paying less for utilities than before a switch was made.
“Furthermore, many agents are expected to increase management fees as a consequence of the ban so those agents which can demonstrate good value for the service they provide may even benefit from the change in law as the main USP of ‘budget’ agents could be lost.”
To find out how much your agency could be earning from seamlessly partnering with Helpthemove, contact us now on 0800 612 6875 to arrange a no obligation audit.