x
By using this website, you agree to our use of cookies to enhance your experience.

The ability to demonstrate a strong performance across your existing rental portfolio is undoubtedly one of the most important factors in attracting new landlords.

In addition to a high quality service, landlords are primarily looking to minimise voids and for the rent to be paid consistently such that the yield is predictable and protected.

We've all been surprised by tenants in the past who fail to pay rent on time, or do not respect the physical asset as we, or the landlord, had hoped; yet it is so often these unforeseen circumstances which can seriously undermine the landlord's trust in the agent, and can sometimes destroy the relationship irrevocably.

I would guess that most experienced landlords would be able to offer anecdotal evidence as to why they do not use a particular agency in their area; personal experience may have left a sour taste in their mouth such that they have parted ways and taken a position against the firm.

The good news for landlords and agents is that tenants appear to have become far more financially secure in the past twelve months.

According to the latest statistics from Your Move and Reeds Rains, the number of those suffering serious rental arrears has dropped by 9% year-on-year. Back in 2013, those who were two months in arrears totalled 71,700; this figure now stands at 65,200. This is clearly a positive step forward and could mean that tenancies become easier for agencies to manage.

These statistics will also clearly provide an underlying confidence to those landlords who might be looking to expand their portfolio or those looking to make their first move into the buy-to-let market.

For individual letting agents it is certainly worth drilling down into your own arrears numbers because I can guarantee that many agencies will be performing better than these national averages. This can clearly offer a compelling sales and marketing message to both existing landlords who use the services of a competitor and to potential landlord clients.

The demand within the private rental sector continues to grow and offers up plenty of opportunities for those operating in lettings. With the pension reforms to be introduced in April next year, many anticipate further growth in PRS; pensioners will be able to drawdown lump sums and invest that money where they wish. It is likely that some will have seen the opportunities in buy-to-let and opt for bricks and mortar.

I suspect this generally cautious and conservative group will want to deal with letting agents who can demonstrate a strong record of finding quality, financially secure tenants who statistically, at least, will pay and thereby protect yield.

Now would therefore seem the time to offer up those agency performance statistics in order to help convince these would-be landlords that your agency is the right home for their business.

*Rob Clifford is Chief Executive of CENTURY 21 UK

Comments

MovePal MovePal MovePal