So what are the potential opportunities for letting agents?
This is a sector which is the second largest provider of homes in the UK so there is a huge opportunity for agents to highlight their added value to hesitant landlords.
The majority of landlords only own one or two properties and many of them are ‘accidental landlords’ with full time jobs and little time to spend on managing their rental property. Add to that the fact that tenants stay longer in properties that are fully managed by a letting agent, minimising any void periods, and that tenants often prefer to deal with letting agents, rather than landlords, and it is not hard to see the value that a good letting agent can add to the buy to let experience.
At Vaboo, we collect data from 1000’s of landlords about their wants, needs and expectations. So what have we learnt?
Top tips to help letting agents attract new landlords and retain existing landlords:
1) Understand landlords’ motivations and fears
It is vital for agents to get under the skin of landlords, both existing and prospective customers. The chances are they are most concerned about issues such as late / non-payment of rent, funding property maintenance and repairs, void periods, tax changes and complying with legislation. Take the time to talk to landlords, ask them questions, listen and empathise with their specific circumstances. Identifying a landlord’s motivations and fears will help you to tailor your messaging more effectively to their needs, which in turn should increase both customer retention and recruitment.
2) Build Trust
Letting agents are an invaluable asset to landlords, providing them with a range of services to help manage their rental properties. However, in order for landlords to make the most of their services, they need to be able to trust the letting agents they work with. Letting agents should be able to offer a comprehensive service to landlords, from finding tenants and managing the rental process to dealing with maintenance issues and handling tenant disputes. Proving from Day 1 that they offer an exceptional customer experience will give landlords peace of mind that their rental property is in safe hands.
3) Be an expert
Whether you are retaining existing customers or attracting new landlords to contact your agency, it is vital that you are up to speed with what is happening in the PRS. Landlords will know that a good agent will understand the market and its pricing, and is ahead of the multiple regulatory and legislative changes which are being introduced.
Nurture a relationship with your local newspaper so that you are the ‘go-to’ letting agent when it comes to an expert view on the local rental market. Network at industry events. Write blogs for your website and social media. Attend landlord meetings and local council forums. Investigate affiliate businesses with whom you can partner up with mutual benefit to both parties. Offer free seminars for landlords to attend in order to educate them. Above all, remember that landlords recommend other landlords; word of mouth is probably the most powerful tool of all.
4) Turn let only instructions into full management
It is a widely accepted fact that recruiting new customers is much more expensive and time-consuming than retaining existing customers. Turning let-only instructions into full management should therefore be a priority strategy for letting agents looking to maximise their income in turbulent times and retain existing landlords.
If you have invested time to understand your client’s rationale for being a landlord, have a clear sense of their specific concerns, and a solid understanding of the PRS, you will be well-placed to make the most of any opportunities to upsell.
5) Be a good communicator
The bar has been raised for all stakeholders in the PRS. Landlords and letting agents must ensure that they conduct themselves in an increasingly professional manner in line with the expectations and legal obligations that now apply to them.
Good communication is the most important element of the landlord / tenant / agent relationship. Begin by making sure that you really are offering a great service - by being there when your customers need you, responding to queries promptly and generally getting things done. Show that you engage regularly, effectively and positively with your customers.
6) Create Value
Lettings agencies seem preoccupied with the next new entrant into the agency marketplace or which portal they should use, but landlords couldn’t care less about that. They have two concerns:
- How well is my current property doing?
- Where is the next one I want to buy?
If you can create something for the landlord which is designed and embedded with specific ways of serving the landlord, value is created through that service.
What if we said it was much easier to create value to a potential landlord/vendor client than an existing one? All you have to do is simply "be of service to your potential client". In most cases this is simple - they want reliable tenants who will stay in the rental property long term, while paying their rent on time and looking after the place. They want minimal void periods between tenancies too, and to achieve the best return on their property investment.
7) Invest in your marketing
Informative, progressive and well laid out marketing materials will save you time and hassle when it is time to convince landlords of the value in paying for your services. Always keep your ideal audience in mind when creating content and marketing materials. What is it that makes a blog post or pamphlet of particular value to a landlord? Think creatively too about how to use social media to establish you as a credible voice for local landlords.
Good sharable content that is targeted to landlords in your specific area such as “Where to get the most ROI on buy to lets in your town or produce well-written articles, which help landlords fulfil their role - from gas safety to pets in rental homes.
Offering incentives to landlords can be a great way to attract them. This could include discounts on services, free advice, or even a loyalty scheme.
8) Boost your brand
It's also important to consider the reputation of your agency's brand. Position your agency as professional, knowledgeable and the obvious choice to maintain and protect a landlord’s investment. For example, provide prospective customers with a personalised prospective when first meeting them. Make sure you have all the relevant information to hand regarding the property and neighbourhood, your compliance regulations, your service pricing and any added value you provide that make you stand out from your competitors. If done well, landlords will feel informed and confident, with realistic expectations of the business relationship they are about to engage in.
9) Keep tenants happy
The lettings industry is built on reputation and word of mouth so don’t forget to invest your time in relationship building. If tenants are happy with their rental experience, they are more likely to recommend the letting agent to their friends and family, which can help to attract more landlords.
It is important to not only think of tenants as customers of your agency but also as potential advocates. Think about asking those tenants to leave a review for you - you might be surprised at how happy they may be to leave positive online reviews.
10) Be Dependable
Over the past few years we have certainly experienced our fair share of external influences. Covid, BREXIT, and the spiralling costs of living. But this is the time when the best agents come to the fore. Savvy agents understand the needs of their clients, of the tenants, and the requirement to build relationships which will persist long after any national or personal crisis is over. Be proactive, step up – find solutions. Your customers will thank you for it.
Vaboo would love to show you how we can add instant value for you and your landlord customers. Get in touch at Vaboo.co.uk/demo
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