Commission Structure for Letting Agents – Which is the best?
If you’re a boss of a lettings agency and not happy with how the way your staff aren’t motivated to get new business, new landlords into your business, then take a look at what they get rewarded for.
Until you change the rewards, your Negs and property managers are not going to change their behaviour, because people always have a reason …. even if the reason isn’t YOUR reason.
Most letting agents pay commission on a simple move in’s, so if that is the case, why would a Lettings Neg go out of his / her way to cultivate a long term relationship to get a landlord, when they can railroad a few tenants to sign up for those properties you already have on the books?
Maybe, if you paid half their bonus on getting income/turnover ie new tenants for your EXISTING properties and paid the rest of the bonus on getting NEW landlord business .. you might be surprised?
Christopher
PS For more thought provoking articles on growing a lettings agency or estate agency …. you might these articles interesting ….. LINK TO ARTICLES