For decades, the status quo in the rental market involved using a high-street letting agent. Whether you were a landlord or renter, you were required to go through an agency with a physical store, paying a commission if you were a landlord and tenant fees if you were a renter.
The only alternatives were marketplaces like Gumtree and Craigslist. However, these weren’t viable competitors due to the many scams on the sites. Landlords and renters had few options available.
What is OpenRent?
OpenRent is an online letting agent and property service provider founded in 2012. It is a UK-based startup company focused on technological solutions for property rentals. Based on several properties, it claims to be the largest letting agent in the UK, boasting over 5 million users as of 2022.
How Does OpenRent work?
What makes it tick, and can renters and landlords achieve a genuine letting and renting experience using the platform? What exactly does OpenRent have going for it?
In this guide, we’re bringing you everything there is to know about OpenRent, including how it works, as well as its strengths and weaknesses. Learn how it approaches customer service, what landlords and tenants think of OpenRent, and how it stacks up against competitors with our handy guide.
OpenRent is a proud Property Ombudsman and ARLA Propertymark member and holds comprehensive client money protection as a government-authorized Propertymark Client Money Protection scheme member.
Analysis of OpenRent and Rightmove
Analysts at investment consultant Panmure Liberum believe Open Rent’s independent move could provide significant insights for other agents. “Open Rent will now serve as a good test case for this,” adding, “One argument frequently trotted out is that agents struggle to win instructions if they do not advertise on Rightmove.”
Panmure Liberum added: “It’s important to note Open Rent’s positioning in the market as an ultra-low-cost ‘do most of it yourself’ approach to lettings, so likely this helps them maintain their value proposition to landlords.”
UBS projected that the loss of Open Rent from Rightmove’s platform would result in a £1 million revenue hit this year, increasing to £3 million in 2024. Although deemed “largely immaterial,” UBS adjusted Rightmove’s valuation, setting a new price target of 760p, down from 782p.
Properties to rent across the UK
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Want to get a head start on the rental application process? Download the free Canopy app here, register your details, and get rent ready in minutes. It will help you move easier and faster and save you money, too!
OpenRent In London
Open Rent is the UK’s largest letting agent. We use online services to make renting your property cheaper and more convenient than ever while keeping quality and security as our top priorities.
For a one-off fee of £69 inc VAT, you get:
Listing on Rightmove and other leading property portals
Advertising your property to millions of high-quality tenants
A tenancy agreement and access to our digital signing services
Registration of the tenancy deposit
Processing the first month’s rent payment
Other services include:
Free Trial for new landlords
Referencing for just £20 per certificate
Gas Safety certificates from just £45 inc VAT
We also provide professional photos, floor plans, viewings, EPCs, and more!
You can find a complete list of our services and fees on our website.
Does that sound good? Contact us or type Open Rent into Google for more details on how we work. We look forward to helping you rent your property soon!
Open Rent is a proud Property Ombudsman and ARLA Propertymark member and holds comprehensive client money protection as a government-authorized Propertymark Client Money Protection scheme member.
Open Rent split with Rightmove
According to analysts, Rightmove and Open Rent’s breakup will serve as a valuable test case for the impact on letting agents who opt not to list properties on the portal.
They confirmed the split. On Tuesday, after the two companies disagreed on contract terms. As a result, Open Rent, which accounts for approximately 8% of Rightmove’s lettings listings, has departed from the site.
Rightmove assured that its full-year guidance remains unaffected by the breakup, emphasizing its status as the UK’s largest rental property portal.
Final thoughts about OpenRent
I have been a big fan of OpenRent, an excellent alternative to traditional high street letting agents.
My personal experience in finding tenants with Open Rent has been excellent. I even found it less hassle than letting agents, albeit a bit more work. And there’s the satisfaction of saving real money by not paying the tenant fee.
Open Rent has enabled me to find excellent tenants for a fraction of the cost of using high-street letting agents. Also, as I self-manage, I’ve been able to build a relationship with the renters from day one, rather than the letting agent handing their choice over to
me.
I doubt I will return to using high street letting agents and will continue to use online letting agents.
However, I’m unhappy with Open Rent’s decision to stop offering landlords the option to have the deposit in a custodial scheme. I cannot see how having Open Rent stand in between the landlord and MyDeposits is useful, and I can only assume they have done this to enable Open Rent to keep the interest on the deposits. I would probably use their cheaper Ultimate Advertising package another time and do the tenancy creation myself.
RentNow remains a good option for landlords who don’t mind using Open Rent’s insured deposit.
That said, OpenRent’s user interface is a bit clunky and feels dated. It has not noticeably changed in the three years I’ve been using it. The information they provide landlords is not very comprehensive, for instance, on the new OpenRent insured deposit scheme.
OpenRent is not the only show in town; many other online letting agents offer similar services, so it’s worth checking them out as well.
Table of Contents
FAQs about OpenRent
- Why did OpenRent and Rightmove part ways?
OpenRent and Rightmove parted ways due to disagreements over contract terms. This split highlights OpenRent’s independent approach to letting services and serves as a test case for the impact on letting agents who choose not to list on Rightmove.
- What services does OpenRent provide for landlords?
OpenRent offers various services for landlords, including:
- Advertising properties on leading portals like Rightmove (before the split) and Zoopla.
- Tenancy agreement creation and digital signing services.
- Deposit registration and processing of the first month’s rent.
- Additional services like professional photos, gas safety certificates, and floor plans.
- The cost for these services starts at £69, with optional add-ons available.
- How does OpenRent benefit tenants and landlords compared to traditional letting agents?
OpenRent provides a cost-effective, transparent, and efficient alternative to traditional letting agents. It eliminates hefty commissions for landlords, while tenants avoid agency fees. The platform also facilitates direct landlord-tenant relationships, fostering better communication.
- What challenges do users face with OpenRent?
Some users have reported that OpenRent’s user interface feels outdated and clunky. Additionally, OpenRent’s shift to an insured deposit scheme has raised concerns among landlords about the lack of transparency and direct control over deposit handling.
- What is the impact of the OpenRent-Rightmove split on landlords and renters?
While OpenRent no longer lists properties on Rightmove, its independent approach allows it to maintain low-cost services for landlords. Renters can still access OpenRent’s listings directly on its platform and other portals like Zoopla. However, landlords who prefer Rightmove’s audience may need to explore alternative options.
