Push property management for growth
While sales divisions are tying themselves in knots, wondering whether to stick with their ‘traditional High Street agent’ stance or to launch a hybrid/part on-line offering, the lettings industry is clinging on to a small sliver of hope that the Government will back track on its pledge to scrap tenant fees, or may see sense and cap them instead.
It’s clear that a ‘do nothing’ approach to the future isn’t going to work. An interesting article doing the industry rounds looked at different ways letting agents and property manager could survive in the current climate. Given a mention was rational outsourcing. Of course, delegation is our business and we have been helping new, small and growing letting agents strengthen their business for many years already.
While outsourcing hasn’t been a concept to tempt every agent in the past, the way the private rental industry is evolving will see outsourcing play a pivotal part in survival. Managing a portfolio of buy-to-lets can be lucrative but it is also bound in compliance and time consuming. Agents want all the perks of having a big managed portfolio without any of the graft and that’s where outsourcing steps in.
Let’s look at the figures to bring property management into focus. The latest analysis from Countrywide shows that rents are rising but the number of landlords is falling. The data points to current, experienced landlords growing their portfolios instead of new landlords dipping their toes into buy-to-let. In fact, the number of landlords who own 10 or more investment properties has risen by 33% in the last decade. That’s means more property maintenance, more emergency call outs, more mid-term inspections and more check outs for a single landlord to manage. There lies the opportunity – professional, value-for-money property management for time-pressed landlords.
There’s also a gap in the market for professional ‘super short-term’ letting management thanks to the Airbnb generation. Rather become regulated out of business, mini holiday lets are here to stay and there’s already a move to bring professional standards to key handling, check in/out and associated services. Resourced properly, any High Street letting agent or property management division can also deliver a stunning short lets management service. Why leave this gap to be filled by start up businesses that may have the initiative but none of the brand clout or industry experience?
Outsourcing is about gaining a property management department without having to expand, recruit, train or do any of the hard work yourself. What’s not to like? Get in touch and give your business the chance to grow and evolve.
By Simon Duce
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