PayProp, an automated payment system for the rental sector, says that its lettings agents can help offset the loses caused by the fees ban through the use of more proptech.
The Tenant Fees Act finally came into force over the weekend, and Neil Cobbold – Chief Operating Officer of PayProp – says this should finally give greater clarity to the lettings industry.
But he says: "While the legislation will undoubtedly help protect renters from a minority of agents that charge exorbitant fees, it will take some time to determine the true consequences of the tenant fees ban and whether it leads to rent rises across the board.
"In order to replace lost revenue from tenant fees, agents will need to generate new income streams, make their processes more efficient and potentially increase landlord management costs where necessary."
Cobbold says that research by Kent Reliance shows over a third of landlords are looking to cut costs, with 30 per cent saying they want to reduce their spend on letting agent fees.
“There is no doubt that the introduction of the Tenant Fees Act will require agents to work harder to retain existing business and secure new clients. The best agencies will already have prepared and implemented various strategies to help combat the revenue lost” he continues.
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