22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
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 ...
Lettings are your bread and butter … how about increasing your profit by 40% AND delivering a better service to your clients and tenants? Lettings are a vital component of every estate agency, but managing a letting business is hard, costly and time consuming. Doing it right isn’t easy and demands a high level of expertise and experience, which doesn’t come cheap. Not only is it essential to employ experienced property managers, there’s a whole bunch of annual licenses, training and fees to pay. Including; Client Money Protection Scheme Professional Training Management Software Non-resident Landlord Scheme MARLA Membership Bank Fees for client accounts The list feels endless when you’re running an agency. But, the value of running a lettings business speaks for itself, despite the high costs there’s still plenty of profit to be made. But what if there was a way to offer better service, without any of the management headaches that come along with rental properties, and increase your letting profits by up to 40%? Sounds like one of those ‘too good to be true’ type of deals right? Well, it’s actually not as far fetched as it sounds. It all comes down to outsourcing. Not off-shore, or to an impersonal call centre, but to a highly professional (and focused) property management company who have better systems, more experience and a one stop shop for both tenants and clients. You get to keep the profits and drop the costs. Your clients don’t see it as outsourcing, because the whole service is branded with your name. Both landlords and tenants will see an immediate...
Is your property portfolio Energy Performance compliant? It can feel like every time you turnaround the government is introducing a new bill that will impact the profitability of the rental market. The government is constantly balancing policy with customer safety, and it feels like private landlords often end up with the sticky end of the stick. Keeping up with new regulations is a constant source of irritation and, more often than not, cost. This latest proposal has come out of the Department of Business, Energy and Industrial Strategy in a consultation document released as part of a government initiatives to de-carbonise buildings in order to mitigate the effects of climate change. The proposal sets out that it wants EPCs on private rental properties to be Band C (or above) by 2025 for new tenancies, and by 2028 for all tenancies. Ok, it’s a few years off but the financial impact of making this happen could be huge if you have an older property with ageing appliances and heating systems. Legislation placing requirements on letting agents is already in place. This includes provisions contained in the Energy Performance of Buildings (England and Wales) Regulations 2012 (hereafter ‘EPB Regulations’) and in the Consumer Protection from Unfair Trading Regulations 2008. The difference now is there is a hard deadline for change. It’s time to consider a renovation strategy for your property that will help you spread the cost and maximise rental income. Being ahead of the game can reap rewards in the amount of income you can generate from your property. A well-presented, compliant property will deliver higher rental values and better-quality tenants. Even if you only have one property it’s important to think ...
What Has The Pandemic Taught Us and How Has The Market Changed?
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