TAKING UP SPACE - When desk space in your agency is tight, it’s time to outsource your property management.
Small
& Medium sized estate agencies who offer letting services face an ongoing
battle balancing space between property management staff and fee earning
agents.
In a
typical office of 6 desks, at least two of them will be occupied by property
management/admin staff. Dead space in terms of income. It’s true that the letting
business is great business for any agency, but the cost of running it (and the
headache that comes with it) drastically reduces income.
The
ideal situation would be to have every single desk in an agency occupied by a
fee earner. That’s obvious, but how can you achieve that, and still have a
lucrative lettings business? Outsourcing. I’m not talking about taking your
support off-shore, I’m talking about having an expert team of property
management staff, superb tenant and landlord support, all done in your name,
without the cost and hassle, with an increase in profits of up to 40%!
Outsourcing
in the professional services industry is a well established and supported way
of doing business. But it’s relatively new to Property Management. Lettings is
historically a very competitive environment with agents vying for properties to
add to their portfolio. The problem isn’t necessarily when you first start out,
but once you reach a certain level of properties the costs (and headaches) start
to increase exponentially. For start-up agencies (or smaller established
agencies) the cost of supporting lettings can be prohibitive as it means
shelling out for so many things that you didn’t need before. Costs for things
like;
Client
Money Protection Scheme
Professional
Training
Management
Software
Non-resident
Landlord Scheme
ARLA Membership
Bank
Fees for client accounts
The
list feels endless when you’re having to dig deep to get rolling.
Access
to advanced client management platforms, local expert property specialists and
vetted suppliers (who landlords love) have allowed PPM to develop a fully white
label service for agencies so they can continue to enjoy all the benefits of
letting without the costs or hassle. It’s a fully white label service, so as
far as the landlords and tenants are concerned it’s your agency delivering the
service. But you won’t have to pay any of the costs and provide desk space for
your admin staff.
Outsourcing
your lettings business to PPM could increase your net profit by as much as 40%
without any interruption to your business. If you’re worried about the impact
on your letting team, don’t, if the business is there, we’ll take them on so
they can work remotely as an employee of PPM. Imagine if every desk in your
agency was occupied with a fee earner AND you were making 40% more net profit
from lettings?
It’s time to think about moving the admin out
and the sales team in!
