Let Alliance, a specialist referencing and insurance provider, has merged with a sister business that sets out to deliver what it says on the tin – Rent on Time.

The merger has been specifically designed ahead of the ban on letting agent fees charged to tenants.

Let Alliance will now offer the Rent on Time product as an integral part of its letting agent proposition.

Rent on Time will cost Let Alliance agents typically 3% of the monthly rent, but is designed to save firms money by taking away a number of tasks and ensuring no delays in management fee income.

Among its services, it offers rent collection and arrears management, and that rent is paid on the due date, regardless of when the tenant actually pays.

The cost also includes all tenancy referencing.

Like Let Alliance’s other products, Rent on Time can only be accessed by landlords through agents.

Andy Halstead, owner and chief executive of both firms, which have until now operated independently, said: “The proposed tenant fee ban presents the most significant risk that letting agents have faced in recent history.

“The service provided by Rent on Time helps letting agents reduce costs, remove administration from their offices and deliver a unique selling point to their landlords.

“At Let Alliance our entire focus is on developing our proposition to support letting agents to prosper regardless of the challenges and risks that we all face together. Rent on Time is the perfect product to add to our customer proposition at this time.”

Let Alliance currently completes some 200,000 tenant references a year, and guarantees rents worth over £360m per year. Landlords and tenants are protected with zero excess policies.

Halstead’s son Jordan, a director, runs an independent lettings agency in Chester, and Halstead said this hands-on experience enables the business to understand letting agents and their needs.

Halstead said: “All I expect our Rent on Time customers to see is an improved service delivered through our bigger team. For Let Alliance customers, Rent on Time is an addition to our proposition that fits perfectly.”

Since the fees ban was announced, Halstead has been holding talks with agents to gauge industry feeling about the effects of the ban.