An Alternative to a Client Account for Letting Agents
Back in October 2020, LettsPay discussed the difficulties faced by letting agents when setting up client accounts with highstreet banks. Since then, this problem has been exacerbated, especially for start-ups. Providing agents with client accounts simply isn’t worthwhile for the highstreet banks anymore. As a result, they are simply refusing to open new accounts, especially when the letting agent is still establishing itself within the market. Worst still, banks are closing existing accounts, which leaves agents in a tricky situation. This problem is a consequence of the Anti-Money Laundering (AML) legislation reported on in 2019, and subsequently tightened in January 2020, (HM Treasury, 2020).
However, Proptech platform LettsPay, has the solution to this headache which complies with AML legislation, whilst providing letting agents and their clients with the secure accounts they need.
LettsPay is a digital client accounting platform which removes the need for letting agents to have specific client accounts with a bank. They offer a range of services in one place to reduce costs, and save time by automatically managing accounts.
All of the agent’s accounting needs from sending out payment reminders, to managing and splitting funds, are covered by LettsPay’s system. Every penny is traced, which allows accounts to be reconciled with ease and ensure that the correct payments are made on time. Linked to each agent account, landlords have their own dedicated account with their unique sort code and account number. Statements are automatically sent to landlords and suppliers as soon as they are paid, cutting out a tedious process traditionally taking up manpower. Rent can be collected via direct debit or standing order, with an automatic reconciliation once a payment has been made. In addition, the needs of overseas landlords are just as easy to manage, with a price well below that for the same service carried out by a bank.
For the agents, transferring their data from their old system is both safe, and easy. In addition, unlike competitors, LettsPay’s accounts are linked directly to a landlord. This means that funds can not be consolidated into one pot, and therefore the correct money, is always allocated to the correct person. Therefore, if one landlord’s tenant owes money, another landlord isn’t impacted. LettsPay is a secure method to manage rent collection and payments. For a start-up in particular, this takes the stress out of holding funds and calculating where they go, allowing you time to focus on other areas you want to develop.
LettsPay has been consciously designed to be simple, easy to use and effective. It was designed with the support and guidance of a successful letting agent who was finding that they were taking up to a week every month just managing payments. As a result of this time consuming process, other areas of their business, such as growing their client base, were suffering. This revolutionary accounting system frees up the agent’s time by chasing payments, automatically sorting funds and providing a detailed account analysis.