The latest figures from Rightmove show that 18% of properties on sale were previously available to rent. This highlights the rising number of landlords choosing to sell rather than rent considering changes to legislation, diminishing returns, and worries over future tax obligations.
For letting agents who rely on the private rented sector and landlords outsourcing their admin, the potential consequences could be devastating.
To help you stay one step ahead, here’s what you can do to attract landlords to your agency and persuade them to stay.
Decide what type of landlord you want to attract
The reality for most lettings agents is that you’ll manage properties belonging to all types of landlords – from those who are reluctant and may have inherited a property to those with a portfolio. While this can be a benefit, it also means your marketing will need to be broad enough to attract their attention.
If you’ve got a clear target demographic or are looking to cater to a specific type of landlord, such as those with student lets, you can tailor your advertising efforts to focus on their concerns and meet expectations.
Understand what your landlords need
Having a specific type of landlord in mind can make this task easier but, in most cases, landlords will share similar concerns regardless. Typical worries include:
- Rental payments being made in full and on time.
- Dealing with property maintenance.
- Staying up to date with landlord obligations as legislation changes.
- Lengthy void periods between tenants.
- Tenant referencing and fulfilling Right to Rent checks.
- Managing tenant deposits correctly.
In addition to understanding landlords’ practical needs, it’s good to know their motivations. This can help you focus on particular issues, giving you a greater opportunity to support them. For example, accidental landlords are likely to have more general concerns about finding tenants and how tenancies work. Busy landlords with a full-time job might need your support in staying updated with their obligations.
Provide support and expertise
Understanding what your landlords need goes a long way in setting your agency up as an invaluable source of information, help, and support. Ways to do this include:
Be an expert
No matter how experienced your landlords are or their motivations, you should be the expert on what’s happening in the rental market overall.
It also means staying up to date with changes to the law, what landlords are obliged to do, and what rights tenants have. Subscribing to trade news publications and attending trade events and conferences all help build your expertise.
If your local newspaper has a property section, consider sponsoring or providing features that showcase what your agency does. Offering blogs or opinion pieces to the local press can also (in time) reinforce the idea that you’re a leading local expert.
Understand your local market
You should be able to identify how national trends and law changes might affect your local market, how landlords might benefit, or how they can minimise negative consequences.
You should also be confident about answering specific questions landlords may have, for example:
- What type of renters live in the area?
- How long is the average tenancy?
- Are there any unique demographic trends (for example, in places with military bases, there may be specific deployment periods).
- What is the average void period between tenancies?
- What’s the average rent in the area?
- What are your agency’s fees.
Offer additional services
Landlords often use letting agents to find prospective tenants and leave it at that. However, one-off services can make business hard to sustain, so offering additional products or encouraging landlords to take up a fully managed service can provide a more consistent income.
Whatever services you offer, be clear about what you’re providing and whether they’re available as one complete package. If not, and you’re offering different levels of service, check that what’s included is explicit and priced accordingly, for instance:
- Tenant referencing and Right to Rent checks in addition to initially marketing the property.
- Check-in, check-out procedures and full inventory provided with visual evidence.
- Regular property inspections with inventory updates.
- Management of safety certificates and other landlord obligations.
- Management of maintenance and repairs.
- Deposit management.
Add extra value and unique propositions
As the market becomes increasingly squeezed, extra value on top of all your other services will help set your agency apart.
Knowing what you should focus on goes back to understanding what your landlords want and need. For example, offering rent guarantee insurance can alleviate fears about defaulting tenants.
Communicate effectively
All good relationships involve effective communication. Remember that your clients are both the landlord and tenant, and communication needs to remain professional and consistent throughout the tenancy.
Good communication can go a long way in reducing complaints and issues, particularly at the end of a tenancy when stress levels for tenants and landlords can be high.
Supporting you to help landlords
Alan Boswell Group offer a range of landlord products to complement your services. This includes landlord insurance, rent guarantee insurance, home emergency, and tenants contents cover.
To find out more about how we can help you support your landlords and tenants with tailored solutions, contact a member of the team on 01603 649727.
