Here is a thought leadership article from PayProp
COVID-19 accelerated estate and letting agents’ adoption of technology, according to a major new report into transparency in the sector – and with restrictions now lifted, they’re doubling down on automated and digitised processes.
PayProp’s report, Trust through transparency – building landlord and tenant confidence in the lettings industry, is based on a roundtable event that brought together some of the residential rental sector’s most prominent figures. It states that the need to continue providing services during the lockdown forced agents to digitise work processes and practise remote working to enable social distancing – particularly around self-service move-in processes and virtual viewings.
Now that the official advice to work remotely has ended, agencies are not abandoning PropTech, but treating it as a key component of their future growth.
Ongoing advantages
Sally Lawson, the founder of Agent Rainmaker, is quoted as saying technology ultimately helps agents to build well-run businesses by streamlining compliance processes and preventing human error.
“For example, it allows agencies to put mechanisms in place to prevent a tenancy from being activated until certain conditions are met, so it plays a big role in helping to keep us compliant,” she said.
James Munro, senior manager at the National Trading Standards Estate and Letting Agency Team (NTSELAT), explained technology also helps to make the sector more transparent, improving consumer trust.
“Tenants and buyers can find out an awful lot of stuff online before contacting the agent – crime levels, EPC certificates, and so much else.”
Are agents now obsolete?
The property sector’s slowness to adopt technology was never just a case of scepticism about its value. Professionals in the sector have also feared its ability to perform certain tasks much better and faster than they could, ultimately replacing human agents.
And admittedly, there is an increasing number of PropTech solutions that allow tenants and landlords to do much of the admin themselves online. Actions including reporting maintenance issues, checking statements and getting deposits back can all be made self-service.
But Paul Shamplina, founder of Landlord Action, presenter of Channel 5’s Evicted! Nightmare Tenants and a keen advocate for the role of agents, admits that while technology can save time, landlords want more than just efficiency from their agents.
“The landlord wants technology to save time through efficiencies and create consistency of outcomes, so they can get on with their business. But from the agent they want expertise and experience.”
Kate Gregory, sales director at Agent Rainmaker, agrees that flesh and blood agents will continue to play a key role, just as they did during lockdown when remote and digital solutions were more important than ever.
“During the pandemic, there’s been a move to virtual viewings and so on, while at the same time there’s been this voice of reason throughout, that of the agent keeping everyone calm and safe.”
While consumer tech can enable self-service by tenants and landlords, Kristjan Byfield, co-founder of base property specialists and The Depositary, says more complex agent-operated technology could help to persuade landlords back into the managed sector.
“I haven’t seen a tool for private landlords that matches the full spectrum of what the professional letting managing agent does, in terms of the hours saved.”
Changing agencies for a changing market
Despite the continued importance of letting agents, Munro believes the pressure is on for them to redefine their role in a changing housing market. “Many buyers or tenants know a lot about valuations and everything else that factors into their decision-making. Agents must therefore reassess their place in that journey while still maintaining the standards they’ve been setting.”
The panel argued that agents can also provide a high-value service, handle complex issues well, offer a human touch, as well as convenience, to make themselves relevant and valuable.
Neil Cobbold, PayProp’s managing director in the UK, says that agents need to prioritise the customer experience when choosing PropTech solutions.
“A lot of agents take on new tech and don't realise that, actually, the landlord or tenant liked things the way they were. They may not appreciate the benefits as explained to them by the agent, for example if it simply makes the estate agent's job easier. They want to know how it’s influencing the convenience fees they’ve been paying.”
You can download the full report, with further expert insights on PropTech’s role in lettings, by clicking here.
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By automating and optimising inefficient property rental management processes, PayProp frees up real-time for letting agents to do what really matters. We bring you:
- Real time automated invoicing
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PayProp is perfect for residential lettings businesses of all sizes, from start-ups to international enterprise clients.
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Simon Whale talks to David Votta from Votta Sales & Lettings about how PayProp has helped his business – watch the full interview
