There has been an almost quiet but epic change, within the lettings industry. Amongst the many laws and regulations that property managers have to deal with, another body that affects letting agents is the Advertising Standards Authority.

They have issued a ruling that makes it mandatory for agents to display all the non-optional fees associated with a tenancy on any advert.

They gave a deadline of 1st November 2014 to comply, which has come and gone, and by the looks of things the industry is still struggling to apply the changes.

For example Zoopla and Rightmove, the UK’s largest property portals, have agreed with the ASA that by 30th November, all their listings will be compliant; either displaying fees per property, or displaying no fees if there are no charges from the agent.

This change means that all agents across the UK have to display their fees. This is no small matter; for the past 20 years, agents have not volunteered to disclose their charges until the viewing or – in the worst cases – the property is booked. According to the ASA, this is where individuals felt compelled to pay, and thought no different, as there was no available comparison. For consumers, this can be a very good thing, with agents now also competing on charges as well as other service features.

For agents on the other hand, this poses an issue with their bottom line. With the property industry cutthroat as it is, displaying fees will actually mean two things: The cost of fees will decrease and the quality of the offering will increase.

Further the software industry that has grown incorporating the same practices, was also aware of the changes in advance, but either did nothing or applied a quick fix, which normally amounts to “fees apply” being added to adverts.

This was not satisfactory for the ASA, they wanted the total cost to be displayed as a minimum, and they wanted this stated on every advert, not just agents’ websites.

The result was a recent quick change by the largest property portals, to quickly update the property advert feeds with this new piece of information.

To remain competitive and still have a profit is still possible. This may actually be beneficial to the businesses that take advantage of this.

Some tips:

  • Calculate the cost of a tenancy – 6 bed student house is more expensive than a couple.
  • Premium properties should have premium pricing – Properties sell at different prices, so why not agency fees?
  • Remove the traditional blanket pricing – Focus on more attractive pricing for properties that are in low demand.
  • Increase your chance of a let – Advertise multiple adverts for the same property, varying rates of rent and charges.

The change has come about because many people in the industry and indeed outside believe that it is a good thing for both consumers and the property industry as a whole. The best way to deal with this change is to take advantage of it. Show your competitors and clients that you take pricing seriously and truly understand your bottom line. You will have more clients as a result and you won’t be stressed out with blanket pricing.

Don’t have a system to manage complicated fees in a simple way? Then sign up free to landmax.pro, we have this feature covered and more.