A new ‘rental CV’ is to be trialled with 25 letting agents.
Called Property Passport, it is being launched by the Lettings Hub.
The beta launch is due to begin mid-August, with the move to full launch by late September.
Property Passport is described as a new way of vetting tenant applicants which can be performed much earlier in the lettings journey.
It claims to provide greater insight into the tenant’s lifestyle, financial circumstances and property requirements, allowing letting agents to select the right tenants and let properties faster without compromising on the level of comprehensive checking provided by traditional referencing.
Heidi Shackell, CEO of The Lettings Hub, said: “We’ve surveyed letting agents at multiple industry events, forums and via e-surveys over the last 12 months.
“They told us that on average it takes 15 hours to get from listing to letting a property.
“Two thirds of respondents told us they would welcome a product that brings the tenant referencing process right to the start of the lettings journey if it did not increase their costs.
“We understood why: most of the tenant references The Lettings Hub decline are due to affordability or previous poor credit issues.
“Having key information like this, right at the outset for free, could save a huge amount of time and effort involved in viewings and reserving properties for applicants a letting agent still knows very little about.”
Property Passport works by providing free pre-qualification information about tenants.
A letting agent can use the free information provided to decide whether to complete the second stage of the reference, which can be paid for online by the agent, the tenant or the landlord.
The product is described as tenant fee ban compliant.
Comments (6)
A letting agent can use the free information provided to decide whether to complete the second stage of the reference, which can be paid for online by the agent, the tenant or the landlord.
?????? cost and the tenant fee compliant?
Hi Woodentop. Cost – The first stage information is available for free, and for the second stage the cost is comparable to our traditional tenant reference pricing.
We are expecting the vast majority of Property Passport to be instigated and paid for by a letting agent or landlord, certainly to begin with.
A tenant can choose to buy the product, which they then own and control in terms of sharing their own information with potential landlords or letting agents. It is their choice, and a letting agent cannot ask them to pay for the product as a condition of tenancy. Based on the surveys we have conducted we do believe that there is an appetite for tenants to have this information.
As the market evolves we believe it’s likely there will be some tenants who choose this route; and letting agents who choose to accept Property Passport’s from tenants. But it won’t be for everyone of course, which is why Property Passport has payment options that allow the letting agent to cover the cost themselves and also, to pass the cost to the landlord if that is the model they’ve adopted.
We recognise that the lettings market is a huge entity; it won’t change overnight and one size won’t fit all. Choice and options, in compliance with the legislation is the way forward.
Thanks for commenting. We designed Property Passport based on what tenants and letting agents told us was important to them so we don’t see the product as being to the detriment of tenants. We’re confident, based on our research, that it provides the right balance of what an agent needs and what a tenant wants. In the traditional tenant referencing model, a tenant may never see the result of their application and some never get an opportunity to present themselves, their background and circumstances to a landlord directly. 69% of tenants we spoke to told us they would want to see their referencing results at the same time as a letting agent, which Property Passport gives them for free. 79% of tenants also said they’d like to know their maximum monthly rent affordability before searching for a rental property, and Property Passport also meets that need. A further benefit for a tenant is the ability to include a personal bio, to help give context and background information to their future landlord and/ or letting agent. 89% of the tenants we spoke to told us they’d be happy to spend 10 minutes creating a Property Passport to help them build a rental profile they’re happy with to demonstrate to their to prospective letting agents and landlords. Property Passport doesn’t take away a letting agent or landlords ability to make any decision they wish to about any tenancy applicant – it gives them more information earlier in the lettings process so that they can save time. Time is expensive and we need to support our letting agent clients to reduce the time it takes from listing to letting a property, and ensure that it is equitable for everyone in the lettings chain. Although the product is fee ban compliant, we see it as an innovation that would have worked just as well before the fee ban. It’s about finding the opportunities to improve that have been there all along! We are happy to send anyone further information about how it works and how it will help.
TheLettingsHub my observations were not critical of your product, indeed it will help many tenants and I am sure many landlords and letting agents. My critiscim is of Government and the fact their constant interference is having a bad impact just so they can gain votes from those who do not understand the impact of certain policies. The recent changes with the fee ban has changed how I operate as I am now having to pay for referencing I am very much more careful about who I even allow to view; this is saving me time. It is however cutting out opportunities from some tenants in poorer positions. The limit on deposits means I, as a landlord, no longer will consider pets. Abolitiion of S21 proposals is already scaring a number of landlords into selling and this will be compounded by the London Mayor pushing for rent control. Fact is rent control will not solve the lack of housing it will only generate less property as landlords sell or short term rent. Politicians are salemen for votes – landlords being attacked means less accommodation!
Thanks Will2, we don’t disagree with any of your main points. The tenant fees bill has changed how agents have to operate and we are sure there will be many further changes as we all become more familiar with the legislation and the challenges it creates for all. Property Passport will help letting agents select the appropriate tenants before spending time on viewing a property, which is arguably the most expensive part of the letting process for an agent, and could even negate the need for taking a holding deposit at all. We appreciate all views and comments about products and solutions that could help letting agents, and any critique and feedback is always welcome!
It seems as government legislates against landlords and agents the industry innovates to the detriment of the very people government purport to help. This will help protect landlords and agents from wasted time and costs and reduces the chances of higher risk tenants being able to “charm” themselves into A property making decisions more binary. Well done government you interference will cost opportunities for those more marginal applicants.