A new eBay-style rental property auction service allows landlords and letting agents to upload their properties so that potential tenants can bid on them.
ThePropertyBid.com has been launched by building surveyor Jonathan Ambrose, who said: “Our system will make the whole rental process completely transparent, so that prospective tenants can bid on a rental property in an open auction format that is managed by the landlord or letting agent.
“The site is all about making the process fairer, and while critics may suggest rental auctions will drive up rents in an already overheated market and be slanted towards landlords, the reality is that tenants will only bid what they can afford in their budget.
“What we’re doing is providing choice. With high demand for residential lettings, there will be resulting price increases anyway. It’s the market that determines the prices because ultimately rental prices are a reflection of supply and demand.
“It’s a matter of people determining what they can afford. If the asked rent moves beyond their expectations they will simply move on to another property that is within their budget. This won’t change, even if an auction system is in place.
“By having the rental process done online, everyone can monitor the process and make sure it’s done ethically. This way it’s all out in the open on the website.”
The site also ensures that applicants are reference checked before they are allowed to make a bid.
Letting agents and landlords create their own auction online, listing the property according to search categories such as type (ranging from parking bays and mansions), price and description.
There are no upfront or joining fees. Once the auction has finished, the landlord or agent is then required to pay a 20% commission fee on the achieved monthly rent amount and the tenant pays 5%, charged to cover their reference check and to ensure they are committed.
So, if for example, bidding for a property starts at £950 pcm by Tenant A and ends after Tenant B bids £1,000 pcm, the landlord or agent pays £200 and Tenant B pays £50, while Tenant A pays nothing.
thePropertyBid.com
Comments
Hello Gavin,
On behalf of the landlords & letting agents, all potential tenants must complete a reference application before they allowed to bid for any properties and as such, we supply a copy of the report.
We use the facilities of Landlordassist.co.uk, one of the UK’s leading tenant referencing agencies to carry out all of the necessary checks.
Of course, agents and landlords can carry out their own further checks if necessary.
The agent & landlord can either stipulate their tenant requirements when they write their description or can tick the description options.
If you have any further queries please feel free to contact me at j@thepropertybid.com.
Thanks!
I would want to see all the vetting checks they do. As i do not trust agents as it is. They just want to get the highest paying tenant as quickly as possible to get their fee.
I do like this idea as a landlord but much prefer to vet myself.
They should also include within the bid a list of benefits the tenant can offer. i.e. how long they wish to rent for, professional career, pets, smokers, kids, etc.
I would take less rent for a Police Officer with no pets, non smoker, long term rent, for example.