Landlords face continually difficult times. Legislation changes are rarely in their favour and, as rental arrears become more common along with legal expenses, maintaining a property is becoming more and more expensive.
As an agent it’s natural to focus your efforts on processing tenants quickly and acquiring more new landlords. But you may well be missing out on key opportunities that could make the process of growing your agency much easier.
Some agents spend a lot of time and resources on looking for new landlords – hardest and most expensive way to grow and agency. In our Agents Guide to Profitability, we look at other ways you can make your agency more profitable. Download it now.
When we look back at data from the last Private Landlord Survey in 2018 the figures show interesting results. Landlords back then reported an average gross rental income of £15,000 per year and the number of landlords with five or more properties account for 48% of the market. But three years and one pandemic later, how are your current landlords is faring now?
The upshot is that landlords need help finding good quality tenants and expert support.
And this all starts right at the beginning of the process.
So how can you help?
Robust referencing process
The devil is in the detail and ensuring tenants are thoroughly checked means they are often less risk. While you can’t predict unforeseen circumstances, a glimpse into previous tenancies, affordability and employment can offer some tell-tale signs.
Ongoing Monitoring and support
Once a tenant is in situ and a landlord is getting his rent, the story isn’t over. The last few years have shown us that the economic landscape can change quickly; as can an individual’s circumstances. Monitoring tenants on an ongoing basis allows you to spot any worrying changes to circumstances or credit scores, enabling you to nip any potential issue in the bud while also keeping landlords informed.
The right kind of insurance
From Right and Legal Protection to Deposit Replacement Insurance, Property Damage Protection and Tenant’s Home Insurance, there are options to protect everyone within the lettings chain. Offering the right products not only mitigates risks, and add a bit of confidence to everyone involved, but making sure your landlords are covered will go a long way to building a long-term relationship with them.
As landlords face increasing risks and diminishing profits, they are looking for agents who go beyond the basics of simply finding potential tenants. Landlords are looking for agents who protects their interests, maximise their profits, offer guidance and ensure that they stay compliant. Those agents that look to develop partnerships – rather than look for the next new relationship – will inevitably benefit from longer term and more profitable relationships with their landlords.
47% of landlords are in this for the long haul according to a survey by Rent Round, so being an agent that goes the extra mile to offer solutions to problems will ultimately pay dividends to your agency, so helping it grow.
If you’d like to find out how you can make your agency more profitable – without constantly looking for new landlords, why not download our Agents Guide to Profitability.