By: Matthew Payne, Head Of Marketing, Caspian One
The rental market is continuing to see increased competition from the increasing use of technology and has been particularly affected by the rise in fintech. This article will take a look at how fintech can help both renters and letting agents make life easier for themselves.
The traditional rental market is currently being made redundant by the rise of new fintech systems. The majority of landlords now rely on a large range of online tools to advertise their homes, to manage their properties, and to deal with rental payments. By using fintech, a landlord’s workload is significantly reduced and the whole process of renting out a property becomes less stressful.
With new technologies being introduced almost daily, there is a real possibility that the whole process will be completely digitalised. As an increasing number of companies enter the market, competition will inevitably increase, making it harder to differentiate and stay ahead of competition.
Where is Fintech being used in the rental market?
RentPro is an online tenancy management system that provides letting agents with software for managing all aspects of the tenant-landlord relationship including rent collection and landlord certification. The system is easy to use and allows landlords to choose exactly how they want rent paid, whether that be via direct debit or standing order. The system also provides details of a landlord’s tenants, including names, contact details, and how often they pay their rent. With a seamless online form to upload, RentPro then generates a property-wide letter for each tenant outlining the terms and conditions. From there, it is simple for the landlord to be paid and even view payment history.
Another great new tool brought about by fintech is Zoopla’s Property Finder service. Using technology that allows users to upload their home images directly into their search engine and pick from an extensive property database, Zoopla creates a customised guide showing the most up-to-date prices for each of the properties in its database.
Rentberry is unique in that it offers a bidding system for tenants to outbid each other on property rental prices. The tenant with the winning bid will then be able to rent the property according to a contract agreed with Rentberry. This system allows tenants and landlords to have full control over rental prices, while ensuring they only pay what they can afford.
That’s not all though, a great fintech tool is used when remortgaging. The traditional way for landlords to remortgage their property was by taking out a high rate, long-term mortgage. The process of remortgaging can be lengthy and extremely time-consuming, especially if there are other parties involved such as lenders and solicitors. Mortgage Express uses a new fintech service where people can apply for a fast remortgage in under 48 hours. This eliminates the need for letting agents to deal with their own solicitors and banks in order to remortgage a property.
The UK property market is expected to see the development of a new generation of technology that will transform the way people buy and sell property. The big change is the introduction of blockchain technology into the system, which involves creating a decentralised network of computers that can be used for transactions with no third party being involved. This system also offers security, as there is no central point that can be hacked or manipulated.
Fintech will innovate the rental market
By using fintech, the rental market is becoming more efficient for both renters and letting agents. Renters are able to find properties quicker and easier than ever before, and letting agents are able to reduce their workload. This has made the rental market more appealing for both renters, homebuyers and letting agents.
It is expected that in 2021 fintech will continue to change the housing market as we know it today. It is expected to help renters and homebuyers make quick decisions about renting a property on their terms whilst also reducing the stress of being a landlord. The post-rental application process will also be improved as landlords are sped up in having their property viewed by new renters and letting agents, this will make the whole process quicker and easier for all parties involved.
Taking into account the rapid technological development and the recent surge in fintech usage, we forecast that UK rental housing market will be more dynamic, and more resilient thanks to the growing number of technologies applied to make it a more efficient and effective market.
The use of fintech on the rental market in the next 10 years will be mainly focused on payment methods so that it can be easier for tenants and homebuyers to pay their rent and landlords can simplify their daily workload. Fintech will continue to innovate and provide landlords and tenants with more ways of making renting easier. Technological advancements in finance and new fintech systems such as peer-to-peer lending will completely transform the way in which people rent. Fintech offers a lot of benefits for landlords, tenants and letting agents and it is expected that the market will benefit as a result.