Alto reports surge in agencies switching from rival systems

Alto reports surge in agencies switching from rival systems

Proptech company Alto has revealed a 130% increase in letting agencies switching from competitor software, driven by demand for more flexible, user-configurable systems amid growing legislative pressures.

Alto’s latest figures show a significant shift in the lettings sector’s technology preferences, with larger agencies increasingly adopting its platform. The company’s Q3 2026 data highlights an 83% year-on-year rise in average deal value, alongside a 228% increase in revenue from its largest contracts. This trend reflects a broader move away from legacy and custom-built systems that struggle to keep pace with regulatory changes and operational demands.

Alto’s growth amid changing agency needs

According to Alto, the number of agencies switching to its software from major rivals more than doubled in the first nine months of 2026. New sales rose by 9% compared to Q2, with September alone recording an 11% increase year-on-year. Notable agencies such as Redstone Lettings and Management, King & Partners, and Middleton Estates joined Alto’s platform during this period.

Chris Tonroe, director of King & Partners, explained the motivation behind their switch after eight years with a previous system. He cited the increasing complexity of legislation and the need for more automation to manage back-office tasks efficiently. This reflects a growing sector-wide demand for software that can adapt quickly to new regulations without requiring costly developer intervention.

Alto’s CEO, Riccardo Iannucci-Dawson, criticised traditional custom-built systems for becoming outdated and inflexible. He emphasised that modern agencies prefer platforms they can configure themselves, integrated with AI tools that automate practical tasks such as chasing sales or matching tenants and landlords. Alto positions itself as an “AI operating system for the whole agency,” aiming to streamline workflows and reduce administrative burdens.

Legacy systems and regulatory pressures

The lettings sector faces ongoing regulatory challenges, including evolving tenancy laws, safety compliance, and data management requirements. Many legacy systems, often bespoke and expensive to maintain, struggle to keep up with these changes. This has created a market opportunity for more agile, cloud-based platforms that offer user-friendly interfaces and automation capabilities.

For landlords and letting agents, software that supports compliance with regulations such as the Renters’ Rights Act, deposit protection rules, and safety obligations is increasingly essential. Efficient document management, timely communication records, and automated reminders are critical features that can reduce the risk of non-compliance and associated penalties.

Alto’s reported growth suggests that agencies are prioritising technology investments that enhance operational efficiency and regulatory adherence. Larger agencies, in particular, appear to value platforms that scale with their portfolio size and complexity, offering AI-driven assistance to manage routine tasks.

Practical implications for landlords and agents

For landlords and letting agents managing small to medium portfolios, the trend towards flexible, AI-enabled software platforms presents both opportunities and considerations. Adopting such systems can improve record-keeping, streamline tenant referencing, and automate compliance workflows, freeing up time for client-facing activities.

However, switching software providers involves upfront costs and transition challenges, including data migration and staff training. Agencies must weigh these factors against the benefits of improved functionality and ongoing adaptability to regulatory changes. The ability to configure systems internally without reliance on external developers can reduce future costs and downtime.

Landlords should also consider how their agents’ software choices impact communication and transparency. Platforms that integrate tenant portals, automated updates, and digital document storage can enhance tenant satisfaction and reduce disputes.

Remaining uncertainties and sector outlook

While Alto’s growth reflects clear demand for modernised systems, the competitive landscape remains dynamic. Other proptech providers continue to innovate, and regulatory changes may introduce new compliance requirements that challenge existing platforms. The effectiveness of AI features in practical agency workflows will be closely watched.

Additionally, the extent to which smaller agents and landlords adopt such technologies depends on cost, ease of use, and perceived value. The sector’s digital transformation is ongoing, and software providers must balance innovation with reliability and support.

What landlords and agents should consider now

Landlords and letting agents should review their current property management and compliance systems to assess whether they meet evolving legislative and operational needs. Key considerations include automation capabilities, ease of configuration, integration with other tools, and AI functionalities that reduce manual workload.

Engaging with software providers to understand upcoming features and roadmap plans can help anticipate future requirements. It is also advisable to maintain thorough records of compliance-related actions, inspections, and communications, supported by digital platforms where possible.

For those considering a switch, planning the transition carefully to minimise disruption is essential. This includes data backup, staff training, and tenant communication strategies. Staying informed about sector technology trends and regulatory updates will support better decision-making.

Supporting compliance and efficiency with TLA membership

The Landlord Association (TLA) membership offers practical support for landlords and letting agents adapting to changing technology and regulatory demands. Members gain access to compliance resources that assist in reviewing documentation and monitoring new obligations. TLA’s developing property management platform, ORBIT, currently in BETA testing, is designed to help organise portfolios, manage rental documents, and record key compliance activities.

ORBIT aims to integrate AI assistance for property management tasks and keep essential information in one place, supporting landlords and agents to maintain evidence of compliance and streamline workflows. Exploring TLA membership and ORBIT BETA access can provide valuable tools and guidance as the sector evolves.

Explore TLA member compliance support and learn more about ORBIT BETA access to prepare for ongoing regulatory and operational changes in the private rented sector.

Looking ahead, the lettings sector will continue to seek software solutions that balance flexibility, automation, and compliance support. Landlords and agents who proactively engage with these developments will be better positioned to manage risks and improve service delivery.

Sources: Letting Agent Today