Housing Hand trials new commission-based approach to rent guarantor service for select letting agent partners
- 25 letting agents/branches to participate in new commission trial
- Commission in addition to guaranteed rent, free leads & wider pool of secured tenants that over 3,000 accommodation providers already benefit from
- Service will support letting agents to reshape their business models
Letting agents haven’t had the easiest start to the summer. This time last year, they were contending with a fall in the number of rental properties, with Home.co.uk reporting a drop of 24% (as at August 2018) in the number of homes to rent in London that had been on the market for 20 weeks or fewer. Now, the banning of fees under the Tenant Fees Act means that agents are not only competing to rent out fewer properties, but with a reduced income.
Against this backdrop, the UK rent guarantor service Housing Hand is offering a ray of light, albeit not a direct substitute. Beginning with letting agents in the UK (with a later rollout to Ireland intended), the firm is trialling a rent guarantor service focused specifically on letting agents’ needs in this brave new post-Tenant Fees Act world. Housing Hand’s award-winning rent guarantor service already supports agents in filling vacancies quickly and efficiently, reducing agents’ in-house admin whilst completely removing tenant default risk, allowing agents to accept a wider pool of qualifying and secured tenants and providing free leads.
Now, the trial of a new batch-based commission structure will see agents have the opportunity to enjoy a new income stream as well. The 25 selected agents/branches have all been chosen to avoid crossover with Housing Hand’s pre-existing partner arrangements with other affiliates such as Universities, Councils and Embassies.
The initial trial runs for 12 months from 17 June 2019. Letting agents refer applicants to Housing Hand for processing, then invoice the company in batches. The system allows agents to earn £25 each for the first batch of 15 tenants that use Housing Hand as the guarantor, £35 each for the next batch of 15 and £50 each for any further tenants. The fully disclosed and transparent structure has been developed in full compliance with the Tenant Fees Act. It delivers legislative compliance, a new source of income for letting agents and a fairer deal for private tenants.
“We’ve striven to develop a system where everyone wins. Housing Hand has already worked with over 3,000 accommodation providers, helping and processing more than 70,000 applicants and covering £120,000,000 in rent. This has given us a deeper understanding of the issues that both tenants and lettings agents face when it comes to guaranteeing rent and managing risk. While many companies are dressing up what are essentially just insurance products as ‘rent guarantee services,’ we’ve worked to develop a completely different product – one that works more effectively for both parties.”
Jeremy Robinson, Group Managing Director, Housing Hand
A review after three months will consider expanding the trial of this new form of service delivery to additional agents/branches that are deemed a good match to Housing Hand’s targets.
From the tenant side of the transaction, property guarantor services are used by everyone from international students to working professionals. By removing the need for tenants to pay large amounts of rent upfront, they remove a major stumbling block from the rental process. Housing Hand reports there is a particular demand from those looking to hire a guarantor to help them secure rental homes in London (notably East and West London) and other major cities. Under the new trial, tenants will continue to receive the same supportive, professional service for which Housing Hand has become so well known.
“The market is changing and the letting fees ban is the latest twist in the tale. We’ve designed our trial to support agents to deal with the post-ban lettings landscape more efficiently. We look forward to analysing the results and expanding the trial in due course.”
Jeremy Robinson, Group Managing Director, Housing Hand
For more information please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/