Online estate agent eMoov is branching out with the launch of a cut-price lettings service, saying that tenant-finding in today's market is a doddle and landlords should not have to 'pay through the nose'.
It will charge landlords a one-off fee of £249 plus VAT, to include professional photography and floor plans, referencing and all tenancy documents.
An optional management service will be priced at £60 per month regardless of rental amount, offering the same facilities as a high street agent: rent collection, administration, repairs, maintenance, inventories, gas safety checks and energy performance certificates.
eMoov, based in Essex, will arrange viewings but landlords will have to conduct them.
eMoov’s estate agency arm works by charging an upfront free of £349 plus VAT.
Russell Quirk, eMoov founder, said: “There is no mystery to letting a property. In this booming rental market, finding tenants really is the easiest job in the world – far easier than finding buyers for homes.
“So why should landlords pay through the nose?
“We are able to slash the price considerably because we have lower overheads than high street agents – one central office covering the whole of UK and contactable seven days per week.
“Lettings agents’ fees have long been a bugbear for landlords, not least because many write in renewal clauses which state that landlords must pay another finder’s fee when the tenant renews their contract, even though the agent has done no more work.
“In response we’ve come up with a transparent low-cost, one-off fee structure, which is similar to the small upfront fee – with nothing to pay on completion – that we charge vendors selling their homes via the estate agency arm of our business. This has already proved a huge hit with home owners, who realise that high street agents don’t always deliver the service they promise.”
Quirk is a former high street estate agency boss who started in the industry in 1984 and ran five branch offices based in Essex between 1999 and 2009. He sold up to launch eMoov, saying that buyers simply do not visit high street agents any more.
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Comments
Exactly what part of this is 'new'? Its a let only service with the landlord doing the legwork priced at a similar cost to other agencies around the country.
I'd be more interested to see how their full management service works on a nationwide basis from a central office in Essex. Are landlords expected to do their own inspections too or will they ask local agents to do it?
Emoov - best of luck I have used the services of one of your online competitors for a few years and it is fair to say I can not forsee a situation where I would use a high street agent again.
Rip You To Shreds - 'Is there any danger of a positive article'
Rip You To Shreds - 'So, to destroy your points'
Wow, wake up people our bubble burst a while ago...
First off renewal fees are not justifiable, if a landlord is happy to let a tenant stay then they should not be charged. Many 'traditional' agents do not charge them and prosper so the inclusion of these fees are merely for our benefit.
Secondly, If these guys do exactly what we do minus the viewing then it's really not half the work is it. Thats their business model so yes, they do make a cost saving....which they pass on to the landlord with lower fees. Many landlords are more than capable of conducting viewings and many more will be incentivised to try it.
Lastly, these 'foolish' landlords are the same landlords whom we chase for business so the hypocrisy might be ours? Also, advertising for tenants using the same portals as us will encounter the same ease and difficulties as we do and at present I'm finding the rental market buoyant; so are they hence their phrase 'doddle'.
As we stubbornly refuse to change we have inadvertently created this industry and like it or not we are no longer the only option. Our arrogance in our own security has left a back door open and now we're crying because we can't close it. These online agents exist because there is a market for them and while we all join hands singing kum by yah in dismissing them, they will continue to grow.
It's time to adjust to a market that is adjusting itself and start competing on a new footing. As commerce heads ever more into cyberspace just make sure you don't get left behind. Analyse your business, not theirs and look to innovate your services to ensure your sustained growth.
These guys are here so get used to it!
Lets be clear on this......its a completely different type of business model as the landlord still need to do the viewings!!
It's amazing how high street agents knock online agents. There is an aggressive divide between online and high street agents and there shouldn't be.
There's room for both as there is a market for both.
I have been involved in both types of businesses much like Mr Quirk and seen success for each. As a business they both work.
To the consumer they also both work. However some landlords will always employ the services of an high street agent as they are not or have no desire to be hands on landlords, but what of those landlords who are or do want to become hands on?
What of the landlord who wants to meet the potential tenants at the viewings and then gets to choose which tenant they like most to proceed to referencing? (keep in mind that the tenant before being allowed to view would have been Pre referenced by the agent to ensure they are suited in terms of income etc and are likely to pass the full reference).
What about the tenants who likes meeting the landlords at viewing? Why? Because the landlord is managing the property and the tenant has a chance to meet the landlord before signing a tenancy and ask questions about maintenence etc.
These types of tenants and landlords exist in abundance (I can only speak for the the London market).
In my experience the landlord and tenant feedback was very positive for the vast majority of viewings when when no agent was present for viewings.
Many of the above comments in other posts are due to lack of experience in different sectors of the industry and also feeling threatened by online agents. A lot of those comments hold no weight in terms what's actually happening in the market.
Mr Quirk along with Upad and the what seems to be small handful of successful online agents (compared to the thousands out there) have a great business for this economy. Their business will continue to grow as landlords become more educated about their responsibilities, the tools to help them find tenants and become more hands on.
From my experience the clients of online agents and high street agents are different, yes there might be some cross over but very minimal and I don't feel the high street agents need worry about loosing all their clients to the online agents, yet.
Maybe one day online will take a bigger share of the market but that wont happen over night, let's see what happens in 10 years.
It would be great to see the high street and online agents working together to strengthen public perception of our industry.
online agents only work for a small percentage of landlords and most after a while will elect for either full management or do it themselves - legislation should be a consideration when doing it yourself yes it can be done as long as you know what you are doing? if not use an agent to MANAGE the let as there is a lot more than just finding a tenant.
Ajay
Do you know why a lot of these so called ex-agent head on out and set up a cheap little low price fixed fee business?
Because they were actually never very good/confident in obtaining a good fee from a seller or negoiating.
Firstly, is there any danger of a positive article on one of these newsletters in the near future, or are we trying to kill our own industry ??
Shock horror. Another "new" online agency. How many is that now ?? 20 million ?? I hereby predict the future ... there will be another article of this nature within 14 days. Yawn.
So, to destroy your points above briefly;
- Finding tenants is not a "doddle", certainly not decent tenants. Even in London its not as easy as you suggest or everyone would do it. Assuming you will indeed be nationwide as you suggest, I assume finding tenants in the Isle of Skye or mid-Wales will be a little more difficult.
- Floorplans on lettings are a waste of time. Don't bother. In the time it takes you to arrange, draw, and get online if it were such a doddle you'd have already found a tenant.
- Landlords will have to conduct viewings. Nice one. What a great idea. This would instantly put many tenants off, and landlords off, and all the other practicality issues, like only being able to view at restricted times whereas I can view for them 9-7 every day.
- eMoov have "an estate agency arm" they say. So they are massive hypocrites as well then.
- "There is no mystery in letting a property" he says. There is if you haven't done it before. By the same principle lets abandon driving tests as there is no mystery to driving, and put 17 year olds out on the roads in cars without any testing.
- An agent that does literally nothing at renewal is a fool, only surpassed by the foolishness of the landlord that uses such an agent. Every single landlord I have renewed with in the last 22 months has received a NET financial gain as a result of my renewal work due to increased rent and/or lack of void period.
All that before you even enter the "paying up front when they might not deliver a result" argument.
I rest my case.
See you in 14 days for repetition.
Rip you to shreds x
Landlords paying through the nose!!!
Your charging less fees but the landlords need to do the viewings themselves!! - therefore you're only doing half the work then aren't you aswell as saving a fortune not having to employ people to do the viewings!
Not the complete super money saving service that you say it is
Obviously an agent not good enough to justify a renewal fee.
Agent's fees are a bugbear, sure. Charge a reasonable amount, do a good job and you'll have customers coming back time after time.
The amount of times private landlords give it a go on some private ad site and then fail miserably due to lack of time and expertise... Ideal of course, I encourage these landlords to try it themselves, as most give up and are happy to pay our fee because the job gets done quicker and using our expertise we get a better tenant and a better rent.
I've lost count of the number of times Mr. Landlord succeeds only by massively underselling/letting his property, but hey, he's saved an agency fee! 9/10 we can justify our fee, something which Mr Quirk cannot!