Technology vs the Human Touch: Why Letting Agents Need More Than Just Software
Chloe Grima ·
Technology is transforming the lettings industry, helping agencies automate processes, improve efficiency and manage everyday responsibilities. But while software can make tasks easier, it doesn't necessarily take the workload away.
For letting agents balancing client accounting, compliance and the demands of running a business, the challenge isn't simply working faster. It's finding ways to reduce the time and resources spent on administration.
1. Is Technology Really Reducing the Workload?
A recent Letting Agent Today article highlights concerns that letting agencies are investing in AI and PropTech without first addressing their underlying operational challenges.
Sally Lawson, founder of Agent Rainmaker, warns that introducing more software isn't always the answer when agencies are already struggling with inefficient processes.
Research highlighted by Letting Agent Today also found that 76% of letting agents say the amount of administration involved in their day-to-day work is limiting.
These findings highlight the importance of addressing underlying operational challenges before investing in additional technology.
2. The Hidden Workload Behind Client Accounting
Client accounting is an essential part of running a letting agency, involving far more than collecting rent and making payments.
Even with dedicated software, employees must oversee transactions, investigate discrepancies, maintain accurate records and ensure client money is managed in accordance with relevant requirements.
As an agency's portfolio grows, the volume of transactions and reconciliations increases, placing additional demands on staff.
This can leave employees spending valuable hours on financial administration rather than activities that directly contribute to business growth.
3. The True Cost of Managing Client Accounting In-House
When comparing client accounting solutions, it's easy to focus on the monthly software subscription. However, the overall cost of managing client accounting internally extends well beyond this.
Agencies must also consider:
- Employee salaries and overheads: Staff time dedicated to processing transactions, managing payments and maintaining financial records.
- Training and development: Keeping employees up to date with software systems, industry regulations and compliance requirements.
- Software and transaction fees: Subscription costs, additional licences and charges that may increase as portfolios grow.
- Staff absence and recruitment: Arranging cover during holidays or sickness and recruiting and training replacements when employees leave.
- Management and oversight: The time required to supervise processes, resolve problems and maintain appropriate controls.
When staffing, training and ongoing administration are factored in, the cost of managing client accounting in-house can be considerably higher than the software subscription alone.
For some agencies, outsourcing may offer better long-term value once all operational costs are considered.
4. The Human Touch Behind Outsourced Client Accounting
While technology can automate processes, client accounting still requires professional judgement, attention to detail and specialist industry knowledge.
At The Letting Partnership, our dedicated team brings together almost 240 years of combined industry experience, delivering a fully outsourced, hands-free Client Accounting service managed by people who understand the complexities of the lettings industry.
Our team takes care of the day-to-day responsibilities behind the scenes, without requiring agencies to change their existing software or bank accounts.
By outsourcing client accounting, letting agents can benefit from:
- Less administration: Reduce internal workloads and free up valuable staff time.
- More time for growth: Focus on winning instructions, building relationships and expanding portfolios.
- Potential cost savings: Reduce reliance on internal staffing, training and associated operational expenses.
- Peace of mind: Know that experienced professionals are managing your client accounting.
Combining technology with human expertise provides a genuinely hands-free service, giving letting agents more freedom to focus on their business.
5. The Smarter Way to Manage Client Accounting
Choosing the right client accounting solution involves more than comparing software features and subscription costs. Agencies must consider the wider impact on staffing, resources and long-term operational efficiency.
While the most suitable approach will depend on an agency's individual needs, outsourcing can provide an opportunity to simplify operations and reduce the pressures associated with managing client accounting internally.
Ultimately, it's about making better use of your resources and creating more opportunities for business growth.
