A new online letting agent, Lets Rent, which is free to landlords, launched yesterday after raising money via crowdfunding.
Lets Rent’s free service includes 28-day listings on Rightmove and Zoopla.
The firm used Crowdcube to raise £118,000 – worth some 34% of the business.
Run by directors Oliver Fitzpatrick, 27, and Richard Cook, 26, the firm charges landlords nothing, but tenants pay a fixed £99 fee to move in.
The Manchester-based firm, which has been in beta mode since last summer, now plans to roll out across England and Wales – although not Scotland, where fees charged to tenants are illegal.
Fitzpatrick and Cook are now planning to make profits of just over £2m on sales of £3.2m by their third year of operation.
Lets Rent advertises on Gumtree as well as Rightmove and Zoopla, and describes itself as a cloud-based online letting agent.
Cook told Eye: “We are very different from other online agents in that we are so tech-orientated.”
The service introduces landlords and potential tenants, and manages all the paperwork digitally. The free package includes tenant referencing, contracts, first-month’s rent collection and contract renewals.
* Meanwhile, another new lettings service has launched which is also free to landlords.
Movebubble does not, however, list on Rightmove or Zoopla, describing itself as an “unagency”. It charges £50 per move per tenant.
Logan Hall said the new service was a “customer collaboration platform” which connects tenants and landlords, and shortly, tradespeople.
He said that the service will list properties, screen tenants, schedule viewings, and allow agreements to be signed on mobile devices. It will eventually also allow landlords, tenants and tradespeople to rate each other.
Hall said: “We are trying to build a trusted marketplace where every user is registered and known, and which engenders a feeling of self-regulation.”
Shelter will love this…
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So, the landlord is not the client, there is no comeback and no protection.
I might suggest that as with all of these money saving schemes – nobody actually saves money in the long run, because a proper test of the market is never undertaken.
The landlord will also miss out on an agent's gut feel as to whether a potential tenant is fit and proper.
People know the cost of an agent, but do not understand the true value.
It would appear that £100 cheaper today is all that really matters.
Hey-ho!
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If the landlord is not the client, then they are not an Estate Agency, therefore, rightmove shouldn't allow them on their site. Rightmove insists on only allowing Estate Agents who work within the act and therefore, they should be removed. Can Property Eye alert Rightmove to this agent and get them to act?
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The landlord is the client, we are acting on behalf of the landlord, the fact that we don't charge the landlord is irrelevant. Traditional agents charge landlords and the tenant. Who is the client then?
Richard Cook – Co Founder
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Also we have worked with Rightmove for a year now and they are fully aware of our terms and how we operate. As are Zoopla and Gumtree.
Richard Cook – Co Founder
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That makes no odds at all, they can boot you off in 6 hours.
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Again, the landlord is our client and Rightmove are aware of our terms. They are happy we comply with their terms.
Richard Cook – Co Founder
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Hello Anonymous
Im Richard the Co Founder of Lets Rent. First of all we are anything but a "money saving scheme". We are a full letting service but based online. We advertise, reference, sort out contracts, collect and register the security deposit and collect then pass on the first months rent. The landlord is our client and is protected as we are members of The Property Ombudsman.
The reason I set up Lets Rent because as a landlord with a significant portfolio I was truly tired of local agents not performing to my standards, typically doing the bear minimum and still charging handsomely. Not all agents are like that but a significant amount in the market place are unfortunately.
This isn't the case saving £100, this is the case of saving anything from £500 to 10% of your annual rent in the south. Which is a significant saving and with landlords bottom line being squeezed from every angle these days from forced licensing to never ending checks that are required by law. The proposition of saving £500 has been well received by our users, as they are happy to show the tenants round and understand our service gives them equal if not better service than a local agent.
The internet is a wash with data that harnessed properly means we have a great view on market rates for every street in the UK. By harnessing all the data and streamlining the letting process we can offer this product at no cost to the landlord.
Our clients don't have to ever go into a letting agency, they can comfortably let their property from the comfort of their own sofa. We believe in modern times this is the future. Many local agents may disagree, time will tell but we are confident about our model and what we are bringing to the market is positive and great news for landlords.
Thanks
Richard Cook – Co Founder Lets Rent
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You seem to think that lettings is a doddle, best of luck as you will need it.
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We don't think lettings are a doddle. Experiencing it first hand I know its hard work and a complicated process. Exactly why it needs streamlining and making easier for landlords and tenants alike.
If the process is laid out from the start, landlords and tenants will feel more comfortable, hopefully ending the negative light most letting agents rightly or wrongly are perceived these days.
We're not re-inventing the wheel, where just trying to steer it in a what we feel is a better direction for all. Open, honest and transparent.
Thanks
Richard Cook – Co Founder
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What makes your service more "open, honest and transparent"? Most reputable agents are already open, honest and transparent.
Are you not just under cutting fees to win business?
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We are not undercutting fees, we have streamlined the process from start to finish. We don't have expensive shop fronts, we don't have company cars, we don't advertise in local press as we see this negligible in terms of lead conversion so why pile money into it.
Streamlining an outdated industry is certainly not undercutting. We make money on the prices we offer our services at. We wouldn't of managed to convince investor's otherwise.
We're open, honest and transparent. Because we display and make it known to landlords and tenants exactly what they are going to pay to complete the process with us. We don't bury it in small print or hit tenants with"admin fees" seconds before they are about to sign the tenancy agreement.
Many reputable agents already act like us this but unfortunately Paul for every 1 good one there are 10's of rogue ones squeezing every last penny out of landlords and tenants alike. If there weren't so many letting agents on that side of the fence then Shelter wouldn't have opened an all out assault against ALL letting agents. Unfortunately everyone is tarred with the same brush.
During market research we asked hundreds of people what they thought of letting agents, and the majority of people had about as much love for them as the taxman. But conceded they had no other option. Well hopefully we are the other option.
A fair price for all.
Richard Cook – Co Founder
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Richard…I genuinely wish you the best of luck. And you will need it.
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Dear Richard Cook.
What's a "lemtting" service?
Regards
Mark
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Dear Richard Cook.
How long do you expect to get away with flouting the law on Energy Performance Certificates. Doesn't that make your firm one of the "bad" agents?
Regards
Mark
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Move bubble is a joke and a half – all tech hype and no substance. Started by a former letting agent, a soldier and a lawyer – says it all. I registered with them last year and it's all jam tomorrow. I look forward to a proper website, an app and some real properties from real people.
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