22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
Outsourcing to rental property management companies – is it cost effective? So, just how cost effective are rental property management companies? Like every business, as we navigate our way through the pandemic, running costs are at the forefront of our minds. Property agents have been hit hard by the lockdown, but as the world gradually settles into some sort of normal, the fallout is becoming evident, and it’s not great. The impact of decreased footfall on the high street has impacted every aspect of the property sale and lettings industry. No matter how big or small your property agency is, lettings form a vital part of the business creating regular income, and a boost to the sales funnel for property sales. But, at a time when you need to have more fee earners out there closing deals and increasing your letting portfolio, you’re also dealing with a bottle neck of property management administration. New safety regulations, renewals, property inspections, all delayed during the lockdown. It’s hard to see how to strike a balance and successfully release you to sell rather than administer. The average sized property agency has approximately 6 desks, with at least two of them being occupied by property management staff. Of course, you need to have dedicated resources to cover your letting business, but they don’t necessarily have to be in-house. Property Management is highly specialised (and not the cheapest thing to maintain when you add in annual fees for subscriptions, training and banking), so why try to do it inhouse? Traditionally it’s how it’s been done, but like everything else today, the world has changed. The word outsourcing strikes fear in the hearts of most business owners; will the benefits by outweighed...
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 ...
White Label rental property management companies boost profits & irradicate cost. With more than 10 estate agencies per week going bust, it’s fair to say that Covid-19 has changed everything for estate agencies and rental property management companies. Only the fittest will survive so right now, it’s all about growth. But growth comes with cost, particularly in the lettings industry. More admin staff, more fees, more everything except sales. Some argue that the days of the high-street estate agency are over, but I doubt that’s the case – at least in the near term. We’re about to see one of the most significant shakeouts the property market has ever seen. The question is how can you grow without increasing your overhead costs disproportionality? Increasing lettings is a great way to improve your regular turnover and help protect your business from short term impacts such as the pandemic. No matter how attractive the additional revenue may be, property management comes with a LOT of administration and associated costs. People, subscriptions, licenses … it’s a long list. You may have some capacity in your team, but how much? The solution is to remove the burden of property management from your business. But, what about profits I hear you say. Let’s be clear, removing the burden doesn’t mean removing it all together, it simply means letting go of the administration and outsourcing that aspect of your lettings business to one of the new breed of rental property management companies. Not only will outsourcing allow you to hire more fee earners, you won’t have to worry about scale. Take on as many properties as you can close, knowing that the outsource agency can expand to fit your growth. It is possible...
What Has The Pandemic Taught Us and How Has The Market Changed?
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