A firm launching a service aimed at helping landlords avoid having to use agents, is predicting that lettings firms will charge close to 18% after the fees ban comes in next week.
Rentora says it is targeting “buy-to-let landlords who want to avoid a widely anticipated rise in agents’ fees next month”.
Rentora says its own service charges less than half the average letting agent fee.
CEO John Wade, who initially built the platform to manage his own properties, said: “We only charge 5% of rent payments.
“The average cost for a letting agent, on the other hand, is currently around 12% and we expect it to be closer to 18% from June.”
The tenancy fees ban is set to be implemented on June 1.
A number of agents who will effectively be unable to charge tenants for anything other than rent, deposits and bill payments, have already said they expect to pass some costs on to landlords.
The new Rentora platform includes a suite of management tools. Tenants are reminded by text when rent is due, and they can pay securely online.
Tenants can also build up a credit rating through the platform’s relationship with Experian.
Landlords are also reminded by text and email notifications of key dates, including when gas checks are due.
Wade said that the ban on tenancy fees is just the latest in a line of hits on buy-to-let.
He said: “Budgets are so tight for many landlords that rising agency fees will push them into loss-making territory.
“Many landlords are going to have to consider managing properties themselves. Rentora has been designed to make that a lot easier so they can stay in profit.”