Make 2017 the year you actually increase letting fee income

December 19, 2016

It’s about now when property experts start looking into their crystal ball to predict what might happen in the coming year. While speculation makes for entertaining reading, it’s planning – not star gazing – that should form the last few weeks of 2016 and into 2017.

It’s possible that the proposed ban on letting agent fees to tenants will taken effect by 2018 and that’s what letting agents should be focused on right now. There might be a few of you pinning your hopes on a Government u-turn but it’s prudent to assume that your fee income will be reduced in some way in the near future.

Or will it? While fees to tenants may evaporate, the year ahead presents a chance to strengthen – and even increase – your lettings income. The value lies in professional property management.

Forward-looking business plans should focus on turning as many ‘let only’ landlords into clients taking on a full property management service, as well as ensuring all new landlords coming to you take out your top level package.

It shouldn’t be a hard sell. We know that demand for rental properties is rising. We also know that tenants increasingly want to avoid ‘rogue’ landlords in favour of a respectable, professional outfit. That’s where a dedicated property manager steps in.

Landlords should find your hassle-free, legally compliant full management service irresistible – especially in a lettings sector that is more rigorously structured than ever before. Tenants should feel reassured that by choosing a professionally-managed let, they will enjoy a smooth tenancy with a property ‘guardian’ at their disposal.

The above isn’t rocket science – you know this already but do your clients? Your message moving forwards should be an education for landlords and tenants on the benefits of a professional management service. Compelling literature, marketing campaigns and a strong online emphasis will help get the message across and, in turn, prompt an increase in clients requesting professional management.

You can choose to bundle up pre-tenancy administration in your full management package and charge a fee that mitigates what you might lose on tenant fees in the coming months. You may even end up increasing your profit margin by winning more expensive full management work. What is guaranteed that my majoring in important issues like compliance, transparency and accountability, you’ll help your brand stand out in a slightly beleaguered lettings sector.

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

Breaking News

Real-life value of the most famous Christmas film homes

The real-life value of the most famous Christmas film homes, from budget classics to multimillion-pound mansions New research has gathered and analysed the estimated valuations of real homes featured in popular Christmas films, ranking them by cost. The priciest homes are featured in The Holiday, Trading Places, and Home Alone, with Amanda’s home from The…
Read More →
Estate Agent Talk

77% of buyers refuse to buy a flood risk property

Despite 4.7 million English homes facing flood risk New research from Lyons Bowe has revealed that 77% of homebuyers would not consider purchasing a property in a flood risk area, despite more than 4.7 million homes across England currently being deemed at risk of flooding. The findings come as the Government launches a new flood taskforce amid…
Read More →
Letting Agent Talk

Poor Communication becomes Expensive at Scale

The hidden cost of fragmented property management By Adam Hills, Client Services Director, LRG Living Markets A landlord asks for an update on a repair. The property manager asks the contractor, who is waiting for access from the tenant. Meanwhile, the accounts team has received an invoice but cannot tell whether the work is complete.…
Read More →
Estate Agents should not all look the same
Estate Agent Talk

When Estate Agents Decide to Go Solo

Leaving an established estate agency to work independently gives experienced agents more control over fees, client service and working hours. It also brings responsibility for compliance, cash flow and every part of the customer experience. Before handing in your notice, test the idea against realistic sales volumes, local competition and the amount of time you…
Read More →
Estate Agent Talk

What Should Buyers Ask Before Reserving a New Build?

Research from Skipton Building Society has found that 44% of aspiring first time buyers would rather buy a new build than an older property, with just 30% favouring an older build. Modern fittings and appliances were the biggest draw, cited by over half of those who preferred a new build, alongside the promise of lower…
Read More →
Breaking News

The UK cities with the largest property price increases revealed

A new study has unveiled the most challenging UK cities for first-time buyers. Newry leads Northern Ireland’s ranking, with a property price increase of 12.8%, while Hull leads Great Britain’s ranking, recording an increase of 6.6%. The research examined data from HM Land Registry to reveal the cities that have faced the highest property price…
Read More →