Do you ignore the noise when opportunity knocks?

I couldn’t help but notice two recent news stories relating to the prime Central London lettings market, published on the same day. Both pointed to brisk post-BREXIT business at the upper end of the capital’s rental market

Knight Frank’s latest report showed that the number of tenancies agreed in August 2016 was actually the highest on record, with a 15.7% uplift in tenancies during June, July and August. Elsewhere, London Central Portfolio reported that the number of properties available to rent in the prime Central London market in the last three months has trebled – from 8,834 to 24,761.

Together these news items paint a very fluid picture in Central London, with potential sellers choosing to let out their properties instead of selling, and a boosted supply of rental properties creating a competitive market that tenants are keen to be a part of. And you should also want a slice of the action!

We use a simple equation when explaining how lettings agents can increase their revenue streams by offering a full property management service:- £1,000 pcm rent at 10% full management fee = £1,200 per annum on a single property. That’s a yearly income of £12,000 if you have 10 managed properties. Grow your managed portfolio and you can quickly grow your profits!

Now think about the rental fees in prime Central London. HomeLet’s latest rental index shows average monthly rents across all 21 London boroughs was above £1,150 – with average pcm rents of £1,563 in Camden; £1,655 in Harringey & Islington; £1,777 in Tower Hamlets and £1,821 in Lambeth. That’s not taking into account the super prime lettings market. Stop and calculate the fees attached to the five-bedroom Park Lane penthouse up for £281,667 pcm, the ten-bedroom Hampstead mansion on the market for £151,667 pcm, or the eight-bedroom Chelsea apartment available to tenants at £108,333 pcm. Remember, this market is increasing in strength and there are not many landlords, if any, at those price points wanting to self-manage!

So it brings me back to the title of this blog. Do you turn pass up opportunities to fully manage properties because you don’t have the staffing, the specialist skills or the resources? Have you put a stop to winning new business because you might over promise and under deliver? Opportunities may present themselves and you shouldn’t be turning them away. Before you shut the door (or you don’t answer it in the first place), give outsourcing a thought. It’s an instant solution to growing your lettings business allowing you to reap the rewards without any of the hard work.

ARPM

Simon Duce is the Founder and Managing Director of ARPM Outsourced Lettings Support - a business designed to help small and start-up letting agents/property managers offer a full suite of property management and tenancy administration services through outsourcing.

You May Also Enjoy

National Federation of Builders
Breaking News

GDP figures shows the need for planning reform

Following GDP growth of 0.4% in March 2024, April has seen no growth and in key sectors, such as construction, output has again dropped. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “The NFB Manifesto, ‘Supporting Construction to Power Growth’, was written with the UK’s GDP struggles in mind. While growth…
Read More
Breaking News

Breaking Property News – 12/06/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Leadpro integrates with Alto Leadpro, a lead generation and management tool, is excited to announce its integration with Alto, the market-leading software for estate agents This integration aims to drive efficiencies for agents by enabling the seamless transfer of leads from Leadpro directly into…
Read More
Estate Agent Talk

Avoiding First-Time Homebuyer Blunders: Your Roadmap to Success

Owning your first home is a monumental milestone, brimming with excitement and anticipation. It’s the start of a new chapter where dreams of having your own house become reality. Yet, amidst this exhilarating journey lies a maze of complex decisions and potential pitfalls, especially for first-time buyers. Successfully navigating the financial and emotional commitments necessitates…
Read More
National Federation of Builders 2021
Estate Agent Talk

NFB reaction and market insights to Conservative Manifesto

The Conservative party launched ‘Clear Action, Bold Action, Secure Future’, their manifesto for the 2024 general election. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “A healthy construction industry is the only way a nation can grow and unfortunately, construction has taken some great hits in these last five years. The…
Read More
Estate Agent Talk

Response to the Conservatives’ 2024 manifesto – Thoughts from the Industry

In its manifesto launched today, the Conservative Party promises to deliver a record number of homes each year on brownfield land in urban areas by providing a fasttrack route through the planning system for new homes on previously developed land in the 20 largest cities, cutting Stamp Duty and commitments to improving the energy efficiency…
Read More
Breaking News

Conservative Plans do Nothing to Address Shortage of Homes to Rent

Responding to proposals in the Conservative Party’s 2024 general election manifesto to scrap Capital Gains Tax for two years where landlords sell properties to sitting tenants, Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “Tenants who want to become homeowners should be supported to do so. Whilst incentivising landlords to sell to…
Read More