Online lettings agency Hello Neighbour is gearing is launching a self-service lettings platform that it says will dramatically cut costs for landlords.
The agency was founded in 2018 to combat the lack of transparency and fairness for tenants and landlords in the UK rental sector.
It already doesn’t charge renewal fees and only bills a one-off fixed fee to the landlord of £1,200 with no additional costs to find and move in a tenant – saving landlords up to 73% of fees compared to traditional high street letting agents.
SAVING MONEY
Its new self-service lettings platform will sit alongside its existing offering and has been designed to give landlords the option of saving more money but still being able to offer quality properties to tenants at the right rental prices.
The letting self-service option will be priced with a one-off fee of £200 and will include rental valuations; advertising across portals Rightmove and Zoopla; property performance insights; online booking for viewings; online offer negotiation; credit checks and referencing; full property compliance; AST contract creation; first month’s rent collection and deposit registration.
ONE-FEE
Hello Neighbour’s full service option is priced at £1,200 also as a one-fee with all of the self-service options but also comes with a personal account manager; photography and floorplans; accompanied viewings; managed offer negotiation and inventory check-in.
A similar self-service option from Open Rent is priced at £69 but only includes advertising across portals; AST contract creation; first month’s rent collection and deposit registration.
Richard Jenkins, Hello NeighbourRichard Jenkins, Hello Neighbour Co-Founder and Chief Execuitve, says: “With the ability to save thousands of pounds – another way of offsetting price rises and increasing mortgage costs – our full-service lettings and property management services are a lifeline for thousands of landlords that want to continue letting their properties in difficult market conditions.
“Hello Neighbour’s soon to be launched self-service lettings platform will provide an even more affordable way for landlords to continue renting good quality properties to tenants at the right rental prices.”
Throughout February 2024, we saw much lower levels of viewing activity with 40 viewing requests per property, a 38% reduction from February 2023 and the lowest level we have seen in the last two years.
LOWEST LEVEL
In February 2024, the number of properties being marketed at 10% over market value was only 6%. This again is the lowest level in the last 2 years.
These are good lead indicators that rental growth is continuing to show signs of slowing and indeed may even suggest rents may fall later this year.
In this context, landlords need to balance rent increases with the potential for longer periods where their property remains empty.
PRICE SENSITIVITY
This price sensitivity is reflected in our top five areas of tenant demand. Our properties in Havering received 398 viewing requests per property compared with our average of 40. With plenty of parks and open spaces and more affordable rents, the top three on our list regularly appear in the most popular places to rent in London lists.
With a large number of landlords having to remortgage at significantly higher interest rates, but without the ability to offset cost rises by charging higher rents to tenants, many landlords are feeling the pressure.
One of the trends we are keeping an eye on is the number of landlords that are selling properties due to the increase in mortgage rates. Currently, we see little activity in this regard despite it being harder to pass on any mortgage cost increases through rent. However, landlords do tell us they are feeling the pressure and it is a key reason they are coming to us.
