The buyer is polite, impeccably turned out, and ticks all the boxes. A cash buyer, all the documentation in hand, ready to go. He wants to complete rapidly and has a prestigious law firm lined up for the conveyancing. After weeks of waiting, your commission is tantalisingly close…

You photocopy his passport and a couple of other proofs of ID, and you’re ready to go. Or are you?

Appearances can be misleading. It’s all too easy to assume that someone is above board, when in fact that could be far from the case.

And these days, HMRC, which enforces anti-money laundering legislation (AML) is cracking down on agents who don’t carry out thorough AML checks. Under AML rules, agents are required to verify the identity not just of the vendor but also the buyer.

HMRC figures show that from May to October 2022, 68 estate agents were fined a total of £519,000 for not complying with rules designed to stop criminals laundering money from illegal activity. A further 56 fines were levied between 1 January and 31 March 2023.

In most cases the fines are for failing to register with HMRC, or registering late, with fines ranging from anywhere between £2,000 and £15,000.

Complacent about compliance

Martin Cheek, Managing Director of SmartSearch – one of the biggest providers of AML checks and verification, which carries out more than three million checks a year – explains that agents must not only register with HMRC but show they have proper risk-assessment procedures in place.

“They all have a duty to complete due diligence and check they are not dealing with anyone on a sanctions list,” he says.

“The majority of agents really don’t feel they have to comply. I think generally the industry feels it’s a sledgehammer to crack a nut because they don’t handle any cash.

“It is quite a complex area for them. They just want to get on selling properties and I think most of the agents I speak to find it an unwelcome distraction.”

Most of the agents I speak to find it an unwelcome distraction.”

According to Cheek, the biggest issue that agents tend to fall down on is carrying out satisfactory client due diligence – they have to prove to HMRC that they have adequate risk-assessment policies and procedures in place.

Martin Cheek, SmartSearch

Using SmartSearch, agents simply log on to an online platform , enter the name and address of the individual and click what kind of check they want. An app will then allow them to take a photo of the passport or driving licence and compare it instantly with a ‘selfie’ of the person.

“I would hazard a guess that we get a couple of thousand fraud cases a year in some shape or form. Some are really obvious – someone has stuck a photo on a stolen passport – but some of them are quite sophisticated.”

Increasing pressure

Emma Burdis, Head of Compliance at Iamproperty, which offers verification checks via its movebutler platform, says property fraud is increasing.

“Criminals are constantly finding new and sophisticated ways to use property to launder money,” she explains. “This places an increasing amount of pressure on the industry to also be more sophisticated in their efforts in preventing them from doing so.

Whilst some agents still prefer the more traditional verification methods, these methods alone are no longer enough.”

“Whilst some agents still prefer the more traditional verification methods, these methods alone are no longer enough to be fully AML compliant – fraudulent documents are becoming more difficult to spot, and criminals are often those we least expect.”

Emma Burdis, Iamproperty

It’s not just Russian oligarchs that agents need to be wary of – organised crime is also a big player, along with individual fraudsters.

Burdis highlights a case that came to light in 2021 which received a lot of media attention.

“A property was sold whilst the legal owner was away and the owner returned to find someone else living in their home,” she says. “The legal owner’s identity had been stolen and illegal documents created. These crimes highlight the importance of adopting robust processes and the use of AML and ID verification technology.

“Most agents are concerned about money laundering, unfortunately ensuring compliance can be time consuming and with the risks and obligations ever changing, confusing.”

Culture of control

Harriet Holmes, AML Services Manager at compliance platform Thirdfort, emphasises that agents must implement robust policies, controls and procedures to deter fraud and money laundering.

“Agents should foster a culture where staff actively participate in the compliance process, alerting managers to issues and concerns as they arise,” she stresses. “Firms must consider the controls they can deploy to mitigate the risks associated with non-compliance and document the process they are going through, and record their considerations.

Agents should foster a culture where staff actively participate in the compliance process.”

“Making such records helps agents reduce the risk of money laundering and fraud failings. It also provides evidence to the regulator of the steps the firm has taken to be compliant.”

She says it also crucial to have a comprehensive training programme in place for staff, so that they are aware of the risks, and the procedures in place to deal with them.

Holmes warns that agents may leave themselves open to criminal prosecution, regulatory fines, professional negligence claims and reputational damage if they do not conduct client due diligence and AML checks to the required standard.

“It’s a huge amount of work to stay compliant while keeping admin from skyrocketing,” she says. “Some agents are still using traditional or manual approaches to client due diligence where agents manually check the client’s passport, identification, or bank statement. However, such manual processes have significant drawbacks, both in terms of the risks of manually checking documents and the time it takes.”

Harriet Holmes, Thirdfort

She adds: “Agents would naturally prefer to spend their time focused on sales, rather than compliance, which is why agents are increasingly adopting digital tools to help stay compliant while reducing the time associated with fraud and AML checks.

“Forward-thinking agents know that relying on human judgement alone for AML is risky and are increasingly turning to technology to help reduce the risks.”

Thirdfort has also recently launched a Secure Share product that allows agents to share verification with conveyancers.

Removing repetition

“During a property transaction, both the estate agent and the conveyancer will ask the buyer and seller to complete the same know your customer, AML and source of funds verification,” says Holmes.

“However, this needless repetition slows down property transactions, delivers a poor experience for home movers and creates unnecessary friction between the agent and lawyer. To overcome these issues, property professionals can now offer simple and secure report sharing for their clients and the other professional advisors involved in the process.”

The message to the industry is clear – don’t take shortcuts when it comes to AML checks, or it may come back to haunt you.

The post ‘Don’t take chances on AML checks – the risks are real’ appeared first on The Negotiator.

Agents can tap into a vast bank of data that can be filtered down to ultra-local – even individual property – levels but many are guilty of only waving a few pie charts under the nose of a potential client at the end of a valuation. It’s such a waste of the valuable insights available.

So why is now the time to focus on local property data and how we use it? While a degree of optimism is floating around the sales market, there were some figures published in January that pointed to persistent challenges.

Instruction numbers in focus

When serial number cruncher Christopher Watkins analysed TwentyEA data to discover 60% of agents were surviving on less than four listings a month, ripples of discomfort were felt in the industry. His stat was backed up by figures from Propertymark that showed new instructions before the New Year were in ‘freefall’ – nine per member branch in October, dropping to six in November and five in December.

Seasonal variations, perhaps, but agents need to win instructions. The temptation, however, is appealing to the masses by targeting every property possible – especially after a lean period. This is something Katy Billany at TwentyEA feels hesitant about.

Target to reduce time wasters

“It has never been more important to have the right data to underpin business strategies and marketing campaigns,” says Katy. She advises caution when taking a blanket approach to canvassing. “Agents should avoid taking on properties that will cost misplaced time and money to market – ones that may languish on their books without a sale. Data is there to understand local marketplaces so agents are generating the right instructions.”

Katy adds that a common mistake is to only target within what an agent views as their sweet spot. “For example, some agents will only market to properties above a certain value, or within a particular Council Tax band, but if demand on their patch is strong for cheaper two-bedroom terraces, they may be missing out on potential instructions that will sell with ease.”

Data generated by TwentyEA tells agents how long different types of properties in a set area are taking to sell and what percentage of those sales are falling through. “We know flats are currently taking three and a half months to sell in the North West, while semi-detached properties are selling in half the time,” says Katy. “It’s these valuable localised snapshots that allow agents to target the best returning leads, rather than waste resources on duds.”

Keeping conversations relevant

Rory Black, Dataloft

Rory Black knows Dataloft’s insights can incentivise when you really have to warm a client up – like now when there’s an air of caution: “It can take a long time for people to make decisions, even after making

contact or having a valuation. That’s why the nurture phase is so crucial.”

For Rory, the ‘drip drip’ of local data can be useful. “We often talk about the importance of creating ‘life-long conversations’ with clients but to keep in touch, you need something interesting to talk about,” he comments.

What could be more relevant to someone interested in selling or letting than sharing information about their local market?”

“What could be more relevant to someone interested in selling or letting than sharing information about their local market? This is where crafted property data becomes a valuable marketing commodity.”

Dataloft’s infographics and easily-digested reports work well when posted to the channels home movers love to explore, like social media, as well as making great print outs, downloadable PDFs and emailable files.

But for all the breakdown of sales volumes and postcode insights, sometimes an up-to-date property valuation is the catalyst for a sale. People love knowing how much their home is worth – especially if it’s more than they paid or better still, more than their neighbour’s.

What’s it worth?

“There’s almost nothing more valuable than letting potential clients know how the price of their property is faring and what other properties like theirs have sold for. We all fall for the FOMO effect,” adds Rory.

“Sending out regular local market reports ensures agents stay on the radar of future customers. Which agent will they come to when they next need something or are ready to move? The one they haven’t heard from? Or the one that sends valuable content derived from local property data?”

Local data is also worth its weight in gold when it comes to on-market prospecting. It will be especially game-changing for those who are charting Rightmove’s current average UK asking price. In January, the portal’s House Price Index revealed average new seller asking prices rose by 1.3% (+£4,571) month-on-month, despite repeated calls for realistic expectations among sellers.

Tracking the triggers

Overpriced properties could be a real trigger for sellers swapping agents, says Heather Staff at Spectre. “Looking at January 2024, the market has already experienced the highest number of property price reductions when comparing the same month over the past three years,” notes heather. “Furthermore, 28% of property listings that underwent a price reduction in 2023 reduced their price more than once – and a number of these listings are still on the market.”

Heather Staff, Street.co.uk

Heather advises agents to pay particular attention to reduced competitor stock in their area, and implement a strong prospecting strategy for targeting, nurturing and winning these second instructions over the following weeks and months.

Data also shows properties are taking longer to sell. Spectre’s analysis revealed that properties sold in January 2024 were on the market for an average of 12% longer compared to last year, and a staggering 50% longer than in January 2022.

Spectre makes this analysis available to agents at a local level, with property data sets filtered according to price reductions and time-on-market – both indicators that a vendor may look to swap agents soon.

It’s all made possible thanks to advanced AI algorithms. “AI can efficiently collect, analyse, process and refine vast amounts of data, which would be otherwise near impossible if done manually,” adds Heather.

AI can efficiently collect, analyse, process and refine vast amounts of data, which would be otherwise near impossible if done manually.”

Tools like Spectre AI can also predict the properties most likely to come to market as new or relisted instructions – those that have fallen through or have been withdrawn recently, for instance – allowing agents to focus on the most likely-to-convert opportunities.

Think of highly-targeted local property data as adding some precise science to your sales strategy. It’ll give you laser focus before, during and after every instruction, with insights that far outperform a basic property valuation.

The post Are you a property data waster? appeared first on The Negotiator.

Let’s look at the relationship between an employee’s desire to receive training, gain formal qualifications and see their career progress, and the resistance of agents to invest in and commit to the calibre of their workforce. We’re in a liminal time – one where we know a formal property qualification is coming – and one where we may even promise training and development when we’re recruiting – but also a time when experience is still the most desirable commodity when there’s a vacancy to fill.

While operating in this grey area, a mismatch between the industry’s outward projection that training and development are at the heart of its offering and what is actually achieved has developed, as observed by Lynn Cannell at LCA Jobs: “Whilst we have seen a definite increase in CVs with property qualifications over the past few years, with ARLA [Propertymark] being the most prominent, it remains a low percentage. This is surprising, given the increase in property organisations promoting their full support for training and development within the recruitment process.”

We have seen a strong shift towards employees favouring companies that offer a structured training programme when looking for new employment. Lynn Cannell, LCA Jobs.

Lynn says the disparity has led her to question why there are not more staff members completing courses and gaining qualifications. “We have seen a strong shift towards employees favouring companies that offer a structured training programme when looking for new employment. It is, however, outweighed by the number of agents who prefer candidates with experience over industry qualifications.”

Tellingly, Lynn’s observation that lettings qualifications are the most commonly seen suggest having passed formal exams – and therefore having accountable levels of skill and knowledge – are more valued in the PRS.

The conversation returns to RoPA

That could change if RoPA’s recommendations are adopted, which state that all staff delivering ‘reserved activities’ employed within a residential agency should hold a qualification at Level 3 or above, with Level 4 compulsory for owners/managers.

A quick Google search tells us the conversations around RoPA were loudest in 2019. Since then, mentions have been distinctly muffled. “Since the RoPA working group published its report, the current Conservative Government has continued to say the recommendations are being considered but no formal response to the report has been forthcoming,” comments Propertymark’s Nathan Emerson.

On the matter of who can offer a mandatory qualification, we believe reputable providers should be approved and appointed. These details have not been released. Nathan Emerson, CEO Propertymark.

“And on the matter of who can offer a mandatory qualification, we believe reputable providers should be approved and appointed. These details have not yet been released.”

Formal qualifications hold little sway

For now, estate agency qualifications are dancing on the periphery of the industry. It would appear the majority of agents support the move towards regulation and they are preparing their internal training structures in readiness to comply. The lack of formal qualifications listed on CVs, however, suggests that all the time they’re not compulsory, qualifications aren’t seen as an immediate concern.

Experience first. Until the industry is regulated, the majority of agents will not embrace qualifications and personal development.

Still reigning supreme when it comes to employment prospects is experience. Joshua Rayner at Rayner Personnel agrees with Lynn on the point of lettings and the need for a formal qualification. On the flipside, he rarely has agents saying ‘I need someone qualified’ when filling a sales vacancy.

“Experience first,” says Joshua. “Until the industry is regulated, the majority of agents will not embrace qualifications and personal development.” He adds that having a number of years’ experience still matters while, sadly, a qualification is a ‘nice to have’ but not essential.

Joshua does, however, have a slight revision of his opinion when it comes to proptech. “Some clients insist candidates have a minimal education of a degree to even be shortlisted for a proptech role within their organisation and it’s the same with financial advisers being CeMap qualified.”

Qualifications are no longer deemed an essential requirement – the focus has now shifted to the right attitude, behaviours and personable skills of the individual. Ryan Doyle, Deverell Smith.

The current indifference around property qualifications is also showing at Deverell Smith. Ryan Doyle at the property recruitment specialist has actually seen a dip in demand for relevant qualifications within estate agency. “Qualifications are no longer deemed an essential requirement but an additional bonus,” says Ryan. “The focus in hiring has now shifted to the right attitude, behaviours and personable skills of the individual.”

Return on investment

Contentious as it may be, Ryan doesn’t believe that property qualifications can earn an agent more money or help them secure a job. “Qualifications will positively contribute to your overall knowledge but, ultimately, won’t determine your salary. In our opinion, the defining factors regarding how much money an agent makes is personable skills, relationship building, knowledge of a geographical patch and efficiency in work ethic.”

Ryan goes on to add that candidates who have been unsuccessful in applying for estate agency jobs shouldn’t rush out and get qualified to improve their prospects. “Of course, obtaining a property qualification is ultimately only going to upskill your CV but there is a significant cost and time required to study and complete exams. If I was advising a candidate who is new to the industry, my first point would be: are you right for this estate agency and do your personal skills compliment the job specification? This is a customer-facing role, personable skills are at the core of how to succeed.”

Nathan, however, is at odds with Ryan when it comes to the benefit of formal qualifications. “Not only are qualifications advantageous for a business model but also lucrative for the employees themselves. Those with a Propertymark qualification are likely to get between £2,000 and £4,000 extra in salary.”

Charlotte Jeffrey-Campbell at The Able Agent concurs. She says agents who train and gain qualifications to increase their knowledge base can expect to earn a higher wage and their employers should be prepared to manage this.

“Faced with the need to adapt and differentiate in order to thrive in this difficult market, I firmly believe that every agent should be looking towards having recognised qualifications with post-nominals (letters after their name),” she comments.

Post nominals command instant recognition, and are the quickest and easiest way to communicate credentials… and a commitment to continue their professional development. Charlotte Jeffrey, The Able Agent.

“Post nominals command instant recognition, and are the quickest and easiest way to communicate credentials. They also highlight the company and agents’ commitment to continue in their professional development.”

Ryan does concede on the point that qualifications do carry weight and professional gravitas. “Historically, qualifications would be seen by business owners as an important tool to show their customers that they fully understand the legalities behind selling, renting or managing an asset.”

With RoPA still on the radar, post nominals after every estate agent’s name is a reality. Maybe a compulsory qualification will revolutionise how consumers view estate agents? Maybe it will mark agency out as a skilled profession and not ‘just another sales job’?

The truth about training

While we wait for a formal qualification to arrive, more attention is being placed on staff training. The topic is a weirdly fractious one, with a long-held belief among some agents that they will spend time and money training staff, only for employees to take their new-found knowledge somewhere else.

The topic was discussed at The Negotiator’s recent conference. When delivering his Top 10 Ps for Estate Agency Success seminar, Michael Day at Integra Property Services (with an impressive set of letters after his name, including MBA FRICS FNAEA and FARLA) highlighted the importance of people.

Michael’s thoughts should allay the fears of agents who think training only benefits a competitor. “People are the largest area of expenditure in a business, so get the best from employees. Look after them and engage in training so they’re the best they can be. Untrained, unskilled staff who stick around are worse than great staff who may leave.” Michael also added that training allows an agent to be consistent with its proposition, which can prevent poor customer service.

Lack of career progression can deter applicants

Enriching a workforce via training is a sentiment reflected by Charlotte: “Agents should not be scared to invest in training and qualifications for their staff. It’s actually rare that we see employees who become more qualified or developed leave for another job.”

Charlotte adds that problems can arise if an agent doesn’t provide any opportunity for development: “When training isn’t provided, swathes will leave to go to a more supportive employer – one who is ready to fund training.”

“And those agents who do go on to qualify through training – where costs were covered by their employer – are generally more loyal in the workplace. It’s something we see time and again. A lack of career progression is an issue in our industry. The focus needs to be around upskilling staff because those who feel promoted and rewarded will be less likely to leave.”

Phasing out bad habits

Training is more than a tick box exercise when trying to attract new talent or retain existing staff. Older and experienced agents may want to look away now but training also prevents new joiners and younger team members from picking up bad habits from their peers.

When asked if mimicking the working style of colleagues can be a negative thing, Charlotte says it’s important to be mindful that it’s easy to get into bad habits and for these habits to rub off on others.

“It’s vital to embrace new approaches to agency and the skills of the younger generation, as well as the nature of a more youthful target audience,” says Charlotte. “For example, people want new methods of finding a property on social media. If an older management team doesn’t relate to this, they won’t see the value in social media, which could restrict growth.”

“We are in a period of change. Technology is evolving and AI presents a huge opportunity. Not having a ‘bottom up’ mentality of teams sharing ideas and updates with senior management may mean opportunities are missed.”

What next?

While a timeline for RoPA’s recommendations to be implemented remains unknown, we do know agents are already questioning who initiates a formal qualification? Lynn notes that there is already interest from candidates who want join a company that provides training and puts employees through exams. “The responsibility presently appears to be weighted on the employer to be the provider, as opposed to an expectation among employers for candidates to come pre-qualified,” says Lynn.

The questions continue. Should those brand new to agency get qualified using their own initiative (and money) before they apply for jobs? Should agents with vast amounts of experience be made to sit an exam to become formally qualified? On the latter, Nathan says that regardless of how long they have been working in the industry, it is “likely that all property agents will be required to be qualified in order to practise.”

We could be heading for a stalemate, with talent being lost at both ends of the experience spectrum if and when a mandatory qualification is introduced. More immediately, Joshua is worried by the LinkedIn Analytics statistic that reveals UK property is losing 5% of its workforce every year.

“We are a declining industry and therefore the need for experienced people to replace experienced individuals leaving the sector is the issue.” Where a formal qualification fits into this picture is up for debate.

The post Qualifications and training – RoPA is coming, so get ahead of the game appeared first on The Negotiator.

Nigel Lewis

The two organisations, of course, are Purplebricks and OnTheMarket. Purplebricks revealed a relaunch on Boxing Day, having already promised to sell homes for free rather than their previous flat fee of £999. This approach, most traditional agents assume, is founded on the belief (held among those inhabiting owner Strike’s HQ, clearly) that there is a sizeable percentage of UK home vendors who would leap at the chance of selling their home for free or much cheaper than a traditional agent charging 1.5%. Most sensible people I talk to point out that while this proved true for around 10% of vendors in the case of Purplebricks during its peak, for the other 90%, it wasn’t.

I struggle to see how a free model can gain any larger market share.

So why offer your services for free? Strike and now Purplebricks believes a gratis offer will generate enough referral revenue from lenders and conveyancers to make for a viable and hopefully volume business.

Service cut to the bone

The trouble is, to achieve this you have to cut your service down to the bone and, while many vendors grumble about traditional agent’s service, they often discover online-only agents are either not much better on average and, in individual cases, worse. And whatever online agents say about high street branches, many vendors like a ‘local’ person in a local office who they feel has a connection to them when they are selling their biggest asset.

Purplebricks spent some £100m or more trying to persuade the public that high street agents were ‘commisery’ and by contrast they saved vendors money. I am struggling to see how the ‘free’ model can gain any larger market share than it already has – and by the way, according to TwentyCI, it’s shrinking, not growing.

Talking of market share, much excitement has been expressed by agents that OnTheMarket, armed with tens of millions of CoStar pounds to market itself to the public, can take on the Rightmove/Zoopla ‘duopoly’. I fear the yahooing by some people is down to the large cheques they’ll get from CoStar now that the sale has gone through. And good luck to them.

But you don’t have to be Richard Branson to predict that, on a good day, it’s going to be an uphill battle whatever the war chest. OTM, after many very troubled years under Springett, just couldn’t get the cut-through with agents and had to resort to old-fashioned stocks-and-shares enticements to sign up enough to gain more listings market share.

While Rightmove’s share price did at one point dip before Christmas by 2% on the CoStar takeover news, there are too many corporate corpses already on the battlefield for level-headed people to think this effort will come to much more than that. The new owners of OTM disagree, saying: “The current market leader has grown complacent focusing on margin over innovation, and pricing ahead of value.

“The level of shareholder support we received is a major endorsement of our plans to invest in OnTheMarket.”

Advertising agencies will be rubbing their hands at the prospect of pitching for the £46.5 million OnTheMarket is to spend on marketing this year, but will it shift the dial? My experience while working at PrimeLocation is that City portal backers underestimate the public’s laziness and how persuading them to use a very similar service to the one they already trust and use – i.e. Rightmove and Zoopla – is a huge task.

OTM will have to offer a single and strong point of difference compared to the other portals that makes moving home easier, quicker or cheaper for the public. Otherwise, what’s the point of its existence? CoStar has hinted that it will be doing this, so let’s see. But the new OTM will also have to bribe its existing and former agents to stay/return, but what with? It’s now a private company without equity to distribute.

This battle of wills and money is going to be the fireworks display of the year and I enjoy watching the fizz and rumble. Let’s see where we are at the end of year and what shape Purplebricks and OnTheMarket are in. Maybe I and the ‘naysayers’ will be proved wrong.

The post Takeovers and makeovers appeared first on The Negotiator.

There are rumbles that more Material Information may disturb any equilibrium in an already fractious market, while moving agents further away from their stock-in-trade of sales and negotiation. Anti-money laundering laws have already led some agents to question whether they actually work for the National Crime Agency, while others feel like they’re doing the job of Border Force when completing Right to Rent checks. Are agents now being pushed too far into conveyancing territory?

Carl Brignell at Elite Conveyancing thinks so and is full of sympathy. “Having read through The National Trading Standards Estate and Letting Agency Team (NTSELAT) requirements, I have absolute sympathy. Trading Standards is effectively asking agents to report on technicalities for which they have no experience, and without any provision for training or a guiding regulator. This is akin to asking a dentist to report on a patient’s eyesight!”

Trading Standards is effectively asking agents to report on technicalities for which they have no experience.”

“The sad irony is that Material Information is a misguided quest and is likely to result in a significant increase in misinformation. It also raises the question of who is held liable for mistakes,” adds Carl, who believes below-average fall-through rates can be achieved with the due diligence of a proficient mortgage broker and a good agent correctly pricing a property.

The general consensus, however, is that more upfront information, together with revised expectations of what happens and when, will positively affect conveyancers, agents and movers. Peter Joseph at The Moving Hub says those involved are not being asked to produce anything new but are merely being asked to produce it earlier in the process. “If a conveyancer is competent, the Material Information required would emerge during the conveyancing process anyway. So let’s be upfront about it.”

If a conveyancer is competent, the Material Information required would emerge during the conveyancing process anyway.”

Upfront adoption is already here

Many conveyancers are already on-board with the idea of front loading. Vicky Quinn- Campbell at Simply Conveyancing recognises that the more information a vendor gives before the marketing of a property starts, the more streamlined the sales process will be. She also says that information should be digitised so it can be shared in real time.

Our clients are asked to fill in a Property Information Form early in the process which gives us important information about the sale and provides the vendor with guidance.”

Like many firms, Simply Conveyancing has already taken a stand to gather information from vendors as quickly as possible. “Our clients are asked to fill in a Property Information Form early in the process,” comments Vicky. “This gives us important information about the sale and provides the vendor with guidance on the kind of documents that will be required during the transaction.” Vicky adds that getting started early gives the vendor more time to find the warranties, guarantees and the paperwork vendors “have a habit of putting somewhere ‘safe’ and then forget where that ‘safe’ place is.”

Forget forms, think digital

Maria Harris, the Chair of the Open Property Data Association and a director of Digital Cat Consultancy Ltd, has been working closely with HBSG and shares Vicky’s views. “Ideally, everyone should stop thinking, talking and working with forms – it’s one of the biggest barriers to digitising the transactional process. To truly reform home buying and selling, everyone needs to move to a data-led and digital way of working.”

The HBSG wants to make digital property logbooks compulsory for sellers.”

The digital nirvana will be for data, such as titles, deeds, searches and EPC ratings, to be collected then stored in a FAIR (findable, accessible, interoperable, and reusable) format via the Property Data Trust Framework. This would become the global standard for data and provide the ‘real time’ access for all stakeholders that Vicky craves. On the matter of warranties, guarantees and other documents that sellers are asked to provide – the ones that are often lost, misfiled or stuffed in a kitchen drawer – the HBSG wants to make digital property logbooks (ongoing information about a property) compulsory for sellers, so information is instantly available.

The work of The Residential Logbook Association (RLBA) is admirable and is supported by the Department for Levelling Up, Housing and Communities. Described as a ‘digital property companion’, a logbook provided by a RLBA member will not only have useful, relevant information about a home in a secure and standardised way, it will also have a copy of the title deeds and any documents referred to in the title document.

The HBSG also wants a greater adoption of property packs (the collation of upfront information prior to a sale), which would see vendors complete IDV and supply BASPI/ TA6-compliant information early in the sales process to reduce duplication and doubling up.

Changing the order of events

Agents might question their role in any future information gathering, especially as they adjust to obtaining Material Information Parts A, B and C, so now is a good time to talk about timing. The idea is not to make estate agents work any harder. The HBSG’s aim is to shift the emphasis to the pre-marketing stage, involving conveyancers much earlier, and finding new time and cost efficiencies between memorandum of sales and completion.

One of the HBSG’s key recommendations is for sellers to instruct a conveyancer before they contact an agent – or at least on day one of marketing. The conveyancer would collate all the legally-required paperwork, would ask the vendors to supply mandated information and would assimilate aspects, including the BASPI, property log book and property pack, prior to an agent’s instruction.

The result would be a complete picture of a property for sale and the compilation of all the Material Information required, without the agent having to gather technical information.

Kate Faulkner OBE, the chair of the HBSG, says that when agents insist their clients complete property logbooks, fill in property packs and instruct a solicitor before they take on the property, the administrative burden is reduced and the resulting sale is speedy and secure.

“Being an agent isn’t easy and neither is making a profit,” comments Kate. “The two big problems for agents at the moment are the length of time it takes to sell a property and the 30% fall throughs. Both are costing agents dearly. One of the causes of these issues is not having enough information upfront, which can lead to overpricing.” Overpricing is one of the concerns expressed by Carl. Often a dwelling’s true value is only found out several weeks after a property has had an offer accepted, usually when something detrimental is uncovered by the searches or in the title deeds.

The two big problems for agents at the moment are the length of time it takes to sell a property and the 30% fall throughs. One of the causes is not having enough information upfront.”

Another issue that can derail a transaction further down the line – and can be avoided by having upfront information available – is a lease. “The information provided by even good agents is rarely enough or correct,” adds Kate. “Rushing to get a property to market without all the answers an agent is required to have – lease length, service charges, ground rent and sinking funds, for example – can end in disaster, especially if this information isn’t understood by the buyers.”

A new money mindset is needed

And now for the prickly point of Pounds Sterling and who will pay conveyancers for their advance work if a new way of buying and selling is adopted. We have to add into the mix that more upfront information may put buyers off and jeopardise the ‘no completion, no fee’ offering of some legal firms. Someone has to cover the conveyancing expense bearing in mind a sale may fail to materialise.

It was a question that hung over the HIP but Glynis Frew at The Property Franchise Group has an opinion on the matter. “What’s really interesting is the push-back that we get that the seller ‘will not pay’ and yet anyone wanting to rent their property pays for an EPC (approx £75), a Gas Safety Certificate (approx £150) and an electrical test report (approx £250), plus the fee to market and find a tenant. Letting agents have no qualms about telling a landlord to commission and pay for these documents.”

Now it’s more than just talking. We had a meeting recently where different protagonists in the industry exchanged examples of how they are making changes happen.”

Glynis’s thoughts tap into a wider mind shift that needs to take place – one where sellers have to be super-serious about their intent to sell. If a vendor is committed to selling, surely they will be invested enough to pay a conveyancer to start work before they instruct an agent?

Equilibrium

We’re returning to the earlier point of disturbing any equilibrium in the current market. After all, the proposals require wholesale changes across numerous industries and also a buy-in from the general public. Will upfront fees put sellers off? “

If a good conveyancer or agent explains to vendors what they are paying for before they market their home and how it will help them, it shouldn’t deter sellers,” comments Kate. She adds that those who are put off are perhaps not the clients an agent needs. “Upfront fees means agents get committed sellers.”

We only have to look to Scotland to see that upfront information can change the buying and selling process for the better. “When a Home Report became a legal requirement in Scotland, the view was people wouldn’t put their properties on the market,” says Kate. “In reality, it didn’t have any negative effects.”

On the contrary. Data obtained by HBSG found transaction times are 4 weeks quicker in Scotland, on average, and the average fall-through rates are 66% less than England and Wales. The upfront cost? RICS puts the average price of a Scottish Home Report at between £585 and £820.

It’s now, as more conveyancers, agents, lenders and providers buy into the HSBG’s recommendations that more objective – and creative – conversations around cost can take place. It’s possible that some agents will be able to absorb the expense of upfront information so it’s a carrot to dangle in front of sellers. Others may explore deferred payments options, as seen in Scotland, where the Home Report can be paid for upon completion or withdrawal. Perhaps it’s as simple as telling sellers they must pay for upfront information and the start, rather than at the end. After all, it won’t be a new expense but a cost that comes earlier.

Kate agrees that there are various ways of covering costs.” There are agents working closely with legal companies to provide the information for free – they’re finding it saves both parties enough time and hassle that it pays for itself. Other agents are buying in property packs to provide the information – they find it reduces time to sell and fall throughs, again, paying for itself.”

Time for progress, not procrastination

There is no question that those involved with the HBSG – the list is impressive and extensive – want change but there’s an elephant in the room. How can we stop the repeated discussions regarding reforms from internalising further? How can we take the discussions away from trade platforms and out into the real world? How can we draw the consumer into the conversation to such a degree that they demand a streamlined, simple conveyancing process?

“Now, it’s more than just talking,” comments Glynis. “We had a meeting recently where different protagonists in the industry exchanged examples of how they are actually making changes happen. The focus is on different agents, conveyancers and service providers working together to enact change. Once we get a swell of activity, this will provide the platform to educate the consumer on what is possible.”

The consumer is at the heart of the HBSG’s proposals. Its discussion paper repeatedly calls for consistent information to be shared with the general public, requesting the Government and the media to communicate changes and revised expectations. It’s a sensible approach as success stems from awareness and a degree of opt in.

It is suggested a leaf be taken out of the lettings book, where the ‘How to Rent’ guide has become the legislative backbone of compliant tenancies. The HBSG wants revised ‘How to Sell’ and ‘How to Buy’ guides to be mandated in the same way as their renting equivalent, and the contents to clearly state what is expected of buyers and sellers. The guides – sent to home movers at the initial point of contact with an agent –should also outline what home movers should expect from the professionals involved.

Regulating agents for mass adoption

Defining the service expected from agents goes hand-in-hand with the HBSG’s key proposal for the regulation of property agents. It feels regulation would ensure all agents make the changes required to improve the transactional process, compelling them to comply with any new legislation and issue mandated information.

With the guides issued, home movers would also be prepared for the checks and verification ahead, such as making it explicit that financial prequalification will take place before a purchaser can view properties and make an offer. There are also notes on a move towards one digital ID certificate, a greater adoption of open banking when it comes to AML, risk assessment and proof of funds, and recommendations on the release of mortgage funds so moves are concluded by 13:00 on completion day.

Everything mentioned above is possible and much of it is already taking place. Now the HBSG wants even more professionals involved in the transactional process to follow its roadmap, test, pilot and feed back its findings.

The tools are available – the BASPI, property packs, property logbooks and conveyancers who are onboard. What’s needed are more agents willing to stick their head above the parapet and only take on sellers who are committed to upfront information and who have been financially prequalified.

Collective change from within

There’s not going to be a sweeping law that alters every aspect of buying and selling. Instead, transformation will come from increasing amounts of mandated information, self-initiative, a collaborative desire for change within the industry, a willingness to adopt fresh ways of operation and a commitment to educating consumers.

In the end, the difference will be agents who can offer faster completion times and lower fall-through rates, versus those who over-promise, under-deliver and lose the trust of the home mover.

The post Who’s making the moves in conveyancing? appeared first on The Negotiator.

Because of the layers of complexity, some bigger agents outsource the whole process to a specialist inventory provider – more on that later. But for those agents who prefer to do it themselves, technology has gone a long way to making life much, much easier.

User-friendly app

Inventory Hive is a relative newcomer, but has made a big impact on the market with its user-friendly app that takes a lot of the pain out of the process. “When they set the property up on Inventory Hive they can choose an inventory template,” says marketing manager Mitch Handley. “So if they know it’s an unfurnished house in a good condition it will pre-populate the rooms – it saves the agent having to manually add each room and each item in the report.” The agent can then tweak the report as they go round.

“Inventory Hive already provides some descriptions they might want to use – for example, the kitchen is clean and tidy, with a neutral smell. But they can type in the box or voice dictate or choose from a drop-down list,” adds Handley.

Inventory Hive has made a big impact with its user-friendly app.

You can also clone items at the click of a button – for example, the condition of the radiators – or even whole rooms. Photos are taken through the app and embedded in the report.

One feature of Inventory Hive is the ability to use 360-degree camera technology to capture a room in one hit, making it easy to compare before and after pictures at check-out.

There is also integration with Fixflo so that if any maintenance issues are raised, they can be dealt with at the click of a button.

The report is then emailed to the tenant who has the opportunity to provide feedback on it when they move in, reducing the potential for disputes.

“If the agent is giving the tenant the opportunity to provide feedback at check-in they can’t really dispute issues at checkout because they have had that opportunity to raise an issue,” explains Handley.

“Creating property inspection reports isn’t a fun job for a letting agent, so we try to make it as simple as possible through the app.

“Usability is really simple, and it’s not overcomplicated. There are less buttons to click, it’s easy on the eye, and the interface on the app is exactly the same as the desktop site. We offer a lot of support and training to all our users. We ensure we hold their hand to make sure they are using the software correctly.”

Live dashboard

Inventory Base is a big player in this space, and enables agents to produce professional inventories, check-ins, check-outs, interim inspections, building inspections and risk assessments. A live dashboard keeps you informed and compliant with historical audit trails and instant notifications. Pre-configured templates can be accessed at the click of a button, and you can complete reports at the property using the user-friendly mobile app, which supports audio recording and speech-to- text. There is also a transcription service, if needed.

The app and website also support 360-degree photos and videos. Tenants can also do their own remote interim inspections, working with an agent in the office, avoiding the need for site visits.

Inventory Base’s range of functions carried out digitally.

Inventory Base allows you to schedule tasks such as EICR and gas safety checks with contractors. In fact, one feature that makes it stand out from the crowd is its marketplace solution for dealing with contractors.

“The providers will get an email allowing them to bid on the job; the agent can see the rating, make sure they are qualified and, say, RICS registered,” explains Inventory Base operations director, Sián Hemming-Metcalfe.

You can manage your resources and your suppliers – the key thing is, it’s about making that data share and connection frictionless. Sián Hemming-Metcalfe, Inventory Base.

“The money sits in an escrow account so the supplier knows they are going to get paid promptly. Sometimes they may have to wait 90 days – our marketplace solves that problem. Once the job is done correctly, the money drops into their wallet. Equally, if something goes wrong, there is the ability to recourse through a complaint process.”

Inventory Base works seamlessly with CRM systems such as Reapit, and contractor software like Fixflo.

“You can manage your resources and your suppliers – the key thing is it’s about making that data share and connection frictionless,” adds Hemming-Metcalfe.

Of course, despite these labour-saving apps, some agents prefer to outsource inventories and property inspections, allowing them to focus on the job in hand.

For those agents that prefer to outsource the inspection process, there are several options.

Savvy to outsource

Assist Inventories was started in 2014 by former letting agent Charlie Saunders, so he knows what it’s like for a harassed agency staff. “A few agents will try to do reports themselves, but the majority, particularly the savvy ones, will outsource it,” he says. “The main reason it is done by a third party is because if the agent is managing the property and there is a dispute with the deposit, it’s quite hard for the agent to argue with the tenant – if the agent has carried out the report they can be accused of being biased.”

A few agents will try to do reports themselves, but the majority, the savvy ones, will outsource it – if the agent has carried out the report they can be accused of being biased. Charlie Saunders Director, Assist Inventories.

The process is simple: when the agent finds a tenant, they will book an inventory check-in report. The clerk will get keys from agent, go to the property, take all the pictures, make a note of the condition and all the defects, meet the tenant and check them into the property. At check-out, the clerk meets the tenant at property, they hand over the keys and the clerk completes a check-out report.

“Because I used to own a letting agency I know everything that needs to be contained within the report,” says Saunders. “That knowledge is passed down to the office staff, we spend time training clerks to make sure the correct evidence is done in the correct order and the correct format, there are enough photos on there, and so on.

“That creates more work for us and more costs, so we are slightly more expensive than some, but it’s not worth the paper it’s written on if it’s not done properly and we have won multiple awards for what we have done.

Assist Inventories offers a full money-back guarantee on inspections. “That really helps cement what we are saying in that our reports are the best. Because we are not the cheapest, if a report is £20-£30 cheaper with another company but it doesn’t hold the evidence to get £100 off the deposit, it is a false economy.”

AI and inventories

One interesting future development in the inventory and property report world will be the use of artificial intelligence (AI).

While not quite there yet, most of our experts agree it will have a role to play in future.

“I can 100% see that will be happening in the future,” says Tomlinson of No Letting Go. “Obviously you are going to need someone there to take the pictures and there are always those things that are not so easy to identify – sometimes tenants try to hide things – but you could certainly cut down the amount of time it takes to do an inventory with AI. You can do more jobs, so it’s more cost-effective for everybody.”

Mitch Handley of Inventory Hive agrees. “Potentially AI could scan the room and pick up the contents rather than you adding in all the items manually – the TV, the fireplace, lightbulbs. The thing with AI will be making sure it is as accurate as possible because obviously it’s an important document.”

Sián Hemming-Metcalfe says Inventory Base is already looking at AI. “With a standard room, you could draw out the descriptions and produce a report from that – it’s totally do-able and something we are already looking at. It makes sense – there are things you can automate, you can streamline, you can make it more efficient for the user and for the buyer. She warns, however, that it is unlikely ever to be a complete solution, as it would be unable to pick up the nuances – looking inside an oven, or finding something a tenant was trying to hide.

Even if AI is a few years off yet when it comes to inventories, as with most things to do with the property world these days, technology is providing solutions to make lives easier and less stressful for agents.

Whether you do your own property reports and outsource them, pretty much everything now can be done at the click of a button.

National scale operator

No Letting Go is a national inventory provider, with 85 offices across the country. It is a franchised operation, but controlled and monitored by head office so the look and feel is always the same. “It’s incredibly time-consuming doing an inventory and check-out,” says head of operations, Justine Tomlinson. “It’s easy to miss things – our guys are experts in it, and are trained, and are doing it day in, day out.

If a dispute goes to adjudication, it is looked on more favourably if the inspection has been done by an independent company rather than by the agent themselves. Justine Tomlinson, Head of Operations, NoLettingGo.

“Also, if a dispute goes to adjudication, it is looked on more favourably if the inspection has been done by an independent company rather than by the agent themselves.

“All our inspectors are highly trained and monitored by head office and we take responsibility for anything that goes wrong.”

Like Assist Inventories, No Letting Go also offers a money-back guarantee to agents. “Providing we have done the inventory and checkout, we guarantee that report will stand up if it goes to arbitration, and if not we will pay out any losses,” says Tomlinson.

Agents are set up on the company portal and there is full online tracking from the moment the job is on the system. They can see the job been booked in, when the job is being done, and when it has been completed.

“When they are setting up the tenancy they can order the inventory at the same time,” she adds. “They are dealing with so many different suppliers – obviously the holy grail now is to be able to access all the suppliers via one system. That’s a big focus for us at the moment, making sure we are integrated with as many systems as possible to cut down on double-data entry for agents.”

Another issue that No Letting Go handles is key management. “We will pick up and return the key – sometimes we are asked to hold the keys for a short period of time,” explains Tomlinson. “Keys are the problems of the industry really, locating keys and identifying where keys are. So quite often agents will ask us to keep hold of the keys between a check-out and an inventory.”

One provider with a unique solution to the key management challenge is KeyZapp – see panel.

KeyZapp – The key to good service KeyZapp is a highly innovative standalone product that allows agents to keep track of property keys – whether it be for sales or lettings. Managing keys can be a nightmare for agents, so KeyZapp came up with a simple high-tech solution in the shape of a ‘smart’ key fob. Each fob is printed with a QR code and also contains a ‘near-field communication’, or NFC chip – the same one that allows you to remotely swipe your phone at a supermarket till.

Each set of keys has its own unique key fob that can be identified using either a specialist reader or your own smartphone.

“If an agent finds a random set of keys on their desk they can just touch the reader and it will tell them which property they belong to, whether they are coming back in or going out, or whether it is a master set or the tenant’s set,” explains director Tim Hill. “It also avoids giving tenants the wrong set.”

If an agent finds a random set of keys on their desk they can just touch the reader and it will tell them which property they belong to. Tim Hill Director, KeyZapp.

The system works with phones, too – if you hold fob to an iPhone, you don’t need to install an app, as long as KeyZapp knows who you are, you can identify the property address from your phone.

One useful security feature is that if a set of keys is lost, and found by someone who touches it with their phone, or tries to scan in the QR code, because they are not a recognised user, a form pops up that says ‘Have you found this key?’ that allows them to report the key as having been found.

With property sales, KeyZapp allows you to track the keys that staff are taking in and out of the office. “The common thing there is you take out five keys in the morning, bring a bunch of keys back, and you don’t realise you’re only brought four back because one as fallen into your footwell, or whatever,” says Hill. “If a key hasn’t been brought back you are alerted that the key isn’t where it is supposed to be.”

KeyZapp is surprisingly cheap at 25p per property per month, with fobs costing just £1 and readers £40.

The post Inventory tech – check this out! appeared first on The Negotiator.

William Reeve at Goodlord says we’re definitely at a point where the vast majority of agencies have at least experimented with software; “Some letting agents were very quick to see the benefits that technology can bring, whilst others have come round to the idea more slowly.” The use of Goodlord’s software is testament to greater adoption. “Demand for our services has increased year-on-year,” says William. “Once teams start using a platform like Goodlord, they soon realise how much time and admin stress they save, and how much bandwidth they gain to focus on clients and the wider health of their business.”

Once teams start using a platform like Goodlord, they soon realise how much time and admin stress they save, and how much bandwidth they gain to focus on clients. William Reeve, CEO, Goodlord.

Goodlord – time and stress saver

Apps are one of the easiest pieces of proptech to understand. From online banking and Spotify to parking and fitness trackers, we’re comfortable with using a variety of third-party apps to streamline our lives. The same should be true in property – especially in lettings.

Today’s software apps have been designed to be user friendly, so the steep learning curve of the past is now the gentlest of inclines. Agents have rich pickings too. From all-encompassing platforms that automate almost every important – and laborious – task, to stand-alone services that allow staff to cherry pick what jobs are more digitised, agents can retain as much control as they like.

Time savings that can’t be ignored

So, just how much time can be saved when using apps? For agents that jump in with both feet and subscribe to Goodlord’s end-to-end lettings platform, a typical agency will benefit from automating 37 compliance steps and will remove 60 steps of duplication on each and every tenancy. William says this reduction in admin can triple the number of tenancy applications that can be processed with the same number of employees.

The Lettings Hub – another end-to-end lettings platform – prefers to express its benefits with percentages. It says by automating 60 per cent of repetitive tasks it can shave an average of 60 per cent off the time required for tenancy set up. “By automating tasks – including tenant referencing, Government-approved digital Right to Rent checks, the creation and distribution of tenancy agreements, and digital signatures – agents can prioritise building client relationships and expanding their business, while significantly reducing administrative burdens,” comments The Lettings Hub’s Heidi Shackell. Automatically more efficient, Heidi also highlights how its BOX software can enhance accuracy, especially regarding compliance. “Manual processes are prone to human error, potentially leading to legal and financial complications. BOX’s functions – such as the automatic issuing of mandatory documents – reduces the risk.”

Manual processes are prone to human error, potentially leading to legal and financial complications. BOX’s functions such as issuing mandatory documents – reduce the risk. Heidi Shackell, MD, The Lettings Hub.

Yielding to automation is something agents have grappled with in the past, as it acknowledges that tech can be more accurate, competent and efficient than the human touch. John Antill at Brightchecker thinks people together with proptech is the best combination. “As humans we naturally don’t like change and it takes time to transition to a new way of doing things. This applies to agents who are happy with a manual process. The best property apps allow agents to conduct inspections more efficiently than they ever could manually.”

As humans we naturally don’t like change … the best property apps allow agents to conduct inspections more efficiently than they ever could manually. John Antill, Co-Founder, Brightchecker.

The Brightchecker inspection app is smart device friendly and can be used when undertaking Fitness for Human Habitation checks, Legionnaires assessments and HMO management checks, as well as inventories. The app’s checklists are brilliant in their own right but are fully customisable and can include photos, as well as comments.

“Brightchecker offers accuracy and consistency, which are two important factors when capturing home inspection data,” adds John. “Our reports are clear and concise.”

Say goodbye to data duplication

Integration with existing CRMs and software platforms, including Alto, Reapit, Gnomen, Qube, MRI, SME Professional, Rightmove Referencing, Fixflo, Jupix, Acquaint, Let Tech Solutions and PropCo, to name a few, is where apps have a key advantage. Debunked, this means the initial data entered into one system can be seamlessly transferred to another – with fields automatically populated and double data entry avoided.

The Lettings Hub has just announced a trio of fresh partnerships. Its new integration with Reapit will allow agents to create tenancies using the data already held within the CRM, while integrating with Home Telecom will automate the utility notification and switching stages. Finally, its integration with live chat software provider Tawk will give letting agents, landlords and tenants another channel of direct communication with The Lettings Hub. Likewise, The Depositary is celebrating two new integrations – ACT Property and Hinch PM – which join Inventory Hive, Inventory Base and No Letting Go/Kaptur.

One of The Depositary’s existing integrations is with the Tenancy Deposit Scheme (TDS), who has developed TDS API – an interface that allows property management software and customer management tools to work together seamlessly. Features, such as transferring deposit registration details at the click of a button, being able to download proof of deposit protection and easily transferring deposits, enhance in-branch productivity.

This automation has not only simplified deposit administration but has led to an overall increase in work efficiency. Operations have become streamlined. Debbie Davies, Head of Sales, TDS.

“The feedback from our agents demonstrates how invaluable this solution is,” comments Debbie Davies. “This automation has not only simplified deposit administration but has led to an overall increase in work efficiency. Operations have become more streamlined, resulting in considerable time and cost savings.”

All in one place

As well as new integrations, the beauty of apps is the ability to launch new features within the software. Inventory Hive – property inventory software that can automate tenant feedback, compliance reminders and inspection scheduling – already has 360° cameras built into its app. Now it has launched a diary management function with Google Maps integration, which negates the need to switch between multiple apps when managing property visits. There’s full suite of automated tenant communications, including recurring scheduling and appointment confirmations, while the map function allows for efficient route planning, travel and time calculations, and mileage monitoring.

The company’s Richard Abbots says the launch was prompted by its research that showed coordinating property inspections is one of the most time-consuming admin tasks a property manager can undertake. “Our new feature helps save property managers up to 20 minutes in office admin time for every single interim visit that’s scheduled. For a 250 property portfolio with 6 monthly interim visits, that’s just shy of 14 hours saved each month.”

Our new feature helps save property managers up to 20 minutes in office admin time for every single interim visit that’s scheduled. For a 250 property portfoli–14 hours a month. Richard Abbot,s CEO, Inventory Hive.

App can earn agents income

One Utility Bill’s ‘Notify’ service is another app trading on its ability to save time, specifically during the check in, check out and void stages. “Notify takes utility registration out of agents’ hands entirely, saving an enormous amount of time that would be spent on the phone and sorting admin,” says the company’s Sophie Humble.

Notify takes utility registration out of agents’ hands entirely, saving an enormous amount of time that would be spent on the phone and sorting admin. Sophie Humble, One Utility Bill.

As well as ending endless calls to gas, electricity and water suppliers, Notify allow agents to earn commission – something that’s possible with a number of other apps too. “Agents can earn up to £4,320 per year in commission based on 20 move-ins per month,” adds Sophie. “Notify integrates with a range of existing CRMs, so there’s a good chance agents can get set up with just a few clicks, with no need to learn any new systems.”

Notify is among a breed of property apps that involve the agent and the tenant. In Notify’s case, the new tenant gets an email and a telephone call telling them who the incumbent utility suppliers are, as well as details of alternative packages that may save them money. The Depositary is moving in similar circles by actively contacting renters. Its app is devoted to making the deposit recovery process as streamlined as possible for everyone involved. “We aim to reduce the admin burden of tenancy conclusions by up to 90 per cent,” says The Depositary’s Kristjan Byfield.

Manual work that would have taken three to four hours has been reduced to as little as 15 minutes, while tenants are reunited with their deposits more quickly. Kristjan Byfield, Co-Founder, The Depositary.

“Our platform automates many of the tasks involved with the end of tenancy stage. The process starts once notice has been given and is managed all the way to refund and/or a dispute,” adds Kristjan. “Agents using The Depositary have found manual work that would have taken three to four hours has been reduced to as little as 15 minutes, while tenants are reunited with their deposits more quickly. Our agents currently average deposit refunds of just 11 days, versus the national average of 21.”

More in touch with tenants

Such efficiencies can be attributed to the app’s two-pronged attack. In the four weeks before their tenancy ends, the app automatically notifies tenants of when their check out is taking place and what is expected in terms cleaning, with the app even recommending cleaning companies. It’s a cajoling dialogue with renters designed to help avoid deductions and disputes.

Apps like The Depositary offer us tantalising glimpses of the future, showing how the relationship between letting agents, property managers and tenants can be responsive, dynamic, holistic and app based. It’s an exciting new communication blueprint that is fast developing at Spike.

Its two software products are currently finding favour with build-to-rent, new development and estate managers. Spike Lettings manages the end-to-end tenant journey in a traditional way but also offers a nifty reservation facility, during which a property is taken off the website for 30 minutes while the tenant pays a reservation fee, thanks to integrations with payment platforms.

Creating a new lettings lifestyle

It’s Spike Living that’s the most mouldbreaking, however, with emphasis on an instant messaging service that replicates the speed, responsiveness and familiarity of WhatsApp, and a lifestyle-driven platform that has echoes of social media.

“Today’s Generation Rent want one place to manage their tenancy and that’s on their mobile phone,” says Spike’s Jonny Wootten. “Having a quick way to message an agent or property manager is good for building a rapport. Young renters are not always comfortable picking up the phone and they consider emails quite formal.”

Generation Rent want one place to manage their tenancy and that’s on their mobile phone. Having a quick way to message an agent or property manager is good for building a rapport. Jonny Wootten, Marketing Director, Spike Living.

Instant messaging’s on-screen push notifications also dial into more modern way to keep up to date and agents can exploit this. “Property managers can notify tenants that new versions of documents have been published, send ‘to all’ messages for those living in a block and start a chat with an individual renter,” adds Jonny. “App-based messaging is a natural way to communicate and managers are more likely to get a response.”

The friendly Spike interface also yields practical functions. From the app, tenants can view appliance manuals, instruction videos and fire safety procedures, log and track maintenance issues, make payments and book shared amenities. More than this, the app strives to build new communities through engagement, with the ability to connect tenants who have shared interests, offer renters discounts at local businesses and even provide live travel feeds.

Time is money

For everyone in business, time is the most precious commodity and as the saying goes, ‘time is money’. Those who embrace the right time-saving technology can use that time elsewhere to grow the business. And it can provide, potentially, a more efficient and consistent service, appreciated by staff and clients alike.

The post Proptech for lettings – c’mon, get appy! appeared first on The Negotiator.

They are making choices over whether to pay the rent or pay the electricity or feed their kids…

Thanks to rising interest rates and harsh government policies such as the looming eviction ban, landlords are quitting the private rental sector in droves – reducing supply and pushing up rental prices. That leaves tenants between a rock and a hard place, with some facing the choice between paying the rent or feeding their children. In this feverish climate, it’s a “no brainer” for agents to ensure that landlords have rent protection in place, warns our panel of experts.

‘Making choices about feeding the kids’

“Evictions are at an all-time high at the moment,” says Eddie Hooker, CEO of Hamilton Fraser and Landlord Action. “We are seeing an 80 to 90 per cent increase in eviction requests and Section 21 and Section 8 requests coming in.” It’s partly because landlords are selling up, but there is more and more evidence that this is a costof- living issues. Tenants are being advised to stay put by CAB and councils, and they are making choices over whether to pay the rent or pay the electricity or feed their kids.

We have already seen a 10 per cent increase [in rents] across the market – that is going to put more pressure on tenants. I don’t know what the solution is… Eddie Hooker, Hamilton Fraser.

“We are seeking a definite correlation there and I do think if interest rates keep going up, and landlords increase rents – we have already seen a 10 per cent increase across the market – that is going to put more pressure on tenants. I don’t know what the solution is.”

He adds: “The real issue is the lack of money coming in – and obviously landlords are feeling the pinch as well.

“For the amount it costs – an average policy is £300-£400 – it is one of the most important protections a landlord can get. And from a letting agent’s point of view, if there is no rent coming in there is no management fee being charged.”

‘Tenants can’t keep up with costs’

Andy Halstead is CEO of the Barbon group of specialist insurers, Homelet, Let Alliance and Rentshield Direct. He agrees with Hooker. “We’ve never sold as much rent guarantee as we do now – even during the Covid we didn’t see demand like we are at the moment,” he says.

“If you think about the cost of a rent guarantee policy and the risk associated with a tenant defaulting, it’s an absolute no brainer – why would you not do it?”

There’s only one direction rents are going in and that is up, and tenants just can’t maintain that level of increase in costs. This has got to break somewhere. Andy Halstead CEO, HomeLet,Let Alliance and Rentshield Direct.

Halstead says landlords with mortgages are suffering because the mortgage rates have shot up, they are paying tax on the rent regardless of whether the property is profitable or not, and there is the supply problem – which will only get worse as landlords leave the sector.

“So there’s only one direction rents are going in and that is up, and tenants just can’t maintain that level of increase in costs. This has got to break somewhere. But because of the lack of property tenants are being forced to pay whatever they can.

“I don’t see light at the end of the tunnel for a couple of years, I think we are going to have to get through this economic cycle. Landlords getting whatever protection they can is crucial.”

Landlords need to reduce risks

Natasha Barrow, Account Director at Arthur J. Gallagher, says one of the big topics at the recent Propertymark One conference was the issue of tenants being unable to afford to pay their bills.

“Clearly tenants are struggling… If they are going to be in financial difficulty then rent is going to be something they will unfortunately default on if it is a choice over eating or paying rent. So we see it as a really important time to be taking out rent guarantee cover.”

Clearly tenants are struggling… If they are going to be in financial difficulty then rent is going to be something they will unfortunately default on. Natasha Barrow, Arthur J Gallagher.

Richard Dawson, rental sector expert at RentGuarantor, is in agreement. “With the increase in the cost of living and a more challenging financial environment for landlords because of interest rates, it is my opinion that the need for landlords to assess and reduce their risks is more important than ever,” he says.

RentGuarantor helps landlords and agents by standing as the guarantor in relation to rent. The service is subscribed to by the tenant, meaning there is no cost to the landlord. Richard Dawson, RentGuarantor.

“Landlords are uncertain of the economy and, having discussed risk with many landlords at length recently, are feeling the pinch of increased interest rates. The uncertainty around interest rates stabilising or reducing means landlords are taking more precautions than ever to mitigate the risk of rent arrears.

You need to do all you can to keep your landords safe and secure – and make a commission along the way.

“Tenants of course are feeling the effects of inflation, too, with increased energy prices, food prices and a general increase in the cost of living having resulted in more tenants being in arrears now than during the coronavirus pandemic.”

Big growth in policy sales

Over at Goodlord, CEO William Reeve has seen the same growth in rent protection insurance. “The latest dynamic is the shortage of rental supply and higher interest rates pushing up rent by double-digit amounts, which squeezes tenants’ disposable income and puts additional stress on them,” he warns. “As a result we have seen sales of insurance grow substantially.

Landlords, just like tenants, are being squeezed, leading to many leaving the market. But for many, the protection and peace of mind of insurance are compelling value. William Reeve CEO, Goodlord.

“Landlords, just like tenants, are being squeezed, leading to many leaving the market. But for many, the protection and peace of mind of insurance are compelling value – for the equivalent of a week or two’s rent, a landlord can protect an entire year of income and any legal costs arising from recovering arrears.”

He says letting agents play a key role in highlighting the risks ahead, particularly with the changing legislative landscape.

“With Section 21 looking to be abolished by the Renters (Reform) Bill, many landlords will be unfamiliar with the process for enforcing their rights, and a letting agent providing rent protection and claims support could become even more important.”

Reading the small print

When it comes to buying insurance, Eddie Hooker of Hamilton Fraser warns that “not all policies are equal”. “Read the terms and conditions,” he advises. “Some will have an excess, either the deposit or one month’s rent; there are other rent guarantees that have no excess. Then there are T&Cs you have to be careful of. Some insurers say you can’t raise a claim for two months, some will pay until you let it, others only for six months or 12 months.”

Marc Corcoran, product and placement director for Arthur J. Gallagher, comments: “Not all legal expenses and rent guarantee policies are the same, and we would urge you to check the terms and conditions very carefully, for example:

• Does the policy pay rent beyond the policy period?
• Is the cost of issuing eviction notices covered?
• Will rent will still be paid when evictions are suspended – as they currently are in Scotland until at least September 2023?

Not all legal expenses and rent guarantee policies are the same, and we would urge you to check the terms and conditions very carefully. Marc Corcoran, Arthur J. Gallagher.

Mediation

Another area our experts say agents should focus on is to keep talking to tenants – but they warn it’s vital that the insurer is notified as soon as someone falls into arrears.

“Our Legal Expenses and Rent Guarantee Insurance has been reconfigured and relaunched, introducing a robust mediation process for all claims,” says Corcoran.

“This has given landlords access to an expert mediation facility that would work with them and their tenant to come to a fair agreement. Once these methods have been exhausted, the landlord’s case would be referred to solicitors ready for eviction proceedings to commence as and when possible.”

Richard Dawson says that in the event of non-payment of rent, RentGuarantor will mediate any arrears by discussing options with the tenant, create any necessary repayment plans, and should it be necessary, serve any section notices and complete the eviction process on behalf of the landlord or letting agent, at no cost to the landlord or agent.

“This is where RentGuarantor helps landlords and agents; by standing as the guarantor in relation to rent. The service is subscribed to by the tenant, meaning there is no cost to the landlord or letting agent.

“We aim to mitigate the risk of arrears for landlords and importantly ensure we provide guidance and support to any tenants who may find themselves in arrears.”

In-house legal team

Let Alliance has its own in-house legal department that steps in immediately if tenants fall into arrears. “When a tenant goes into arrears we ask them to notify us and then we take over rent collection, and we have a lot of success in that,” explains Andy Halstead. “A significant percentage of our rent guarantee claims never end up with a claim because we collect the money from the tenants.

“Because we try to intervene when there is still only one month of arrears we have a very good success rate of getting that money in, which means the problem then goes away. If the problem doesn’t go away then before we start the legal process we act as mediator between the landlord and the tenant to see if there is any way to get an agreement to help both sides to resolve the problem.”

No brainer

One thing is for sure, given the economic climate and the pressures on landlords, rent defaults are going to get a lot worse before they get better. You need to do all you can to keep your landords safe and secure – and make a commission along the way. As Halstead says, encouraging your landlords to take out some kind of rent protection insurance really is a “no brainer”.

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