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New landlord management platform to pay tenants to find their replacement

A new property management platform, which is launching soon, is looking for landlords to sign up and test its systems for free.

Mashroom would effectively cut out letting agents by providing an opportunity for landlords to fill their vacant properties by paying outgoing tenants to find their replacement.

The soon-to-launch online letting community platform will reward outgoing tenants by paying them up to one week’s rent for liaising with prospective renters and carrying out viewings.

Aside from the obvious perks for renters, Mashroom aims to appeal to landlords with the prospect of cheaper fees, increased communication and reduced void periods.

How does it work?

Once a change in tenancy has been confirmed, the landlord can instruct Mashroom at which point either the landlord or the existing tenant can upload property details and images, subject to approval by the landlord, on to the online platform, which in turn will advertise the property on the major portals.

The outgoing tenant can then manage enquiries and viewings with interested parties on the Mashroom platform, who will then be able to make an offer to the landlord.

Once the landlord has accepted an offer, Mashroom will make the necessary checks before the landlord and new tenant sign a tenancy agreement.

After the new tenant has moved in, the outgoing tenant will receive their financial reward.

Stepan Dobrovolskiy, Mashroom’s founder, said: “By redistributing platform income to tenants and saving landlords money, Mashroom creates an integrated community that will produce a behavioural shift in the way people find and let their properties in large cities.

“The current system of tenancy changeovers can be expensive and slow with a lack of transparency and communication between landlords, tenants and intermediaries. By getting the outgoing tenant involved in the process, and rewarding them for doing so, we feel our lettings community provides a much-needed solution to a long-standing problem.

“Not only does Mashroom save landlords money while rewarding departing tenants, it also speeds up the rental process for all parties and allows the incoming tenant to gather key information from someone who has already lived in the property.”

Alongside its new way of finding new tenants, Mashroom, which charges landlords a flat fixed upfront fee of £149, also has plans to provide landlords with a range of property management services.

As well as referencing and tenancy contracts, the online platform provides landlords with the opportunity to request advance rent payments and take out rent guarantee insurance and tenancy deposit insurance to make it easier for tenants to move in as the financial burden is not so heavy.

Dobrovolskiy added: “The property management sector is changing rapidly as more landlords seek alternative management platforms which cost less than traditional letting agents.

“With increased legislation such as the ban on tenant fees and landlord licensing schemes, the cost of letting a property continues to rise so it's vital that shrewd landlords reduce management costs and keep void periods to a minimum.

“What's more, tenants and landlords increasingly desire digital platforms which allow all parties to interact directly and enable several key parts of the tenancy process to be carried out quickly and efficiently online.”

Poll: Does the idea of the soon-to-launch online letting community platform appeal to you?

PLACE YOUR VOTE BELOW

  • icon

    The extra agency fees don't bother me, what ever extra it costs me will be divided by 6 and added to the rent, if after 6 month the new tenants are behaving themselves i could then reduce the rent.

  • Paul Barrett

    Yep in theory but few LL would do what you suggest.
    It all results in rents increasing.
    Tenants will pay tenant fees except now they will be called rent!!
    Same with S24 etc.
    Rents will keep on increasing as long as costs increase.
    LL won't be making more income to spend it will just be to cover increased costs.
    Fortunately I don't need or want a LA but of course my market rent will increase mirroring rents that LA charge even though I won't have the expense of one resulting in more real spending money.
    So I say LA jack those rents up so I can hang onto LA coattails!

  • icon

    LLs don't need LAs to give outgoing tenants an incentive to find new tenants. I've often done this and tied the (modest) incentive in with the old tenant giving extensive notice, new tenant moving in on the day the other one moves out, leaving the flat ready for immediate occupation etc.

  • Paul Barrett

    Robert,
    I have never had to pay incentives though I did do so once.............................£50
    Due to severe lack of supply most of my tenants have come via referral with the new tenants just grateful in finding a property where they haven't been required to pay massive LA fees.
    Literally as you have found one lot move out and the folliwing day the new lot move in
    Everyone is happy!!
    LA round my way would charge tenants £300 per person.
    So 4 tenants that is a lot of money.
    The most that any tenants of mine would have to pay is the cost of a TRP for about £60 pp.
    Though rarely do I need this to consider such tenants.
    Most of the tenants know eachother and apart from one who owes me rent arrears they have been OK.
    Few of them would ever qualify for RGI so invariably I DON'T even bother seeing any referencing as they are EU nationals.
    A passport and letter of employment is what I usually end up with.
    Apart from this one recent tenant the EU nationals pay their rent.
    The former tenant who owes is a Ryanair pilot.
    Never had any issues with their cabin crew paying me rent though!!

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