Fewer properties, more tenants, more self-managing landlords, and a looming increase in regulations. The changes in the lettings sector have disheartened many agents – to say the least – but I know it's still possible to run a successful agency. More than ever right now, we need to evolve our businesses to meet the new demands.
I've seen my fair share of industry ups and downs since setting up my first agency in the early 90s, and now coaching others to success through my mentoring company, Agent Rainmaker.
We need to learn to bring self-managing landlords back to agencies, and convert the "let only" landlords – who make up more than 80% of those using an agent – to fully managed clients.
How can this be done? There are several key areas of focus for those agents who want to not only ensure the continuity of their business, but also see a growth in landlord numbers (and ultimately in profits) despite the changes.
Create a well-rounded business
Agents must learn to develop more rounded businesses which offer levels of service and a variety of services to our clients.
Landlords shouldn’t simply be choosing between let-only and fully-managed, not when you have the knowledge and ability to support them with every aspect of their portfolio, from buying a new property to renovating it.
Build up your marketing expertise
Marketing is another crucial area of evolution. The agents whose entire marketing strategy revolves around the occasional Facebook post are simply not going to be generating the number of leads necessary to grow their business.
Understand and get ahead of the changing market
Legislation and compliance – always an important aspect of our sector – are even more crucial given the likely incoming Regulation of Property Agent rules around staff qualifications.
But at the forefront of all our minds is the changing market: shortage of stock, huge levels of tenant enquiries, mixed with the rising costs and rates of inflation.
Showing an understanding of these changes in the market to educate and inform your landlords is essential, and would contribute to encouraging your landlords to choose your full management service over let only.
Tapping into the 82% let-only market to add more fully-managed landlords to your books, reducing and keeping down costs, building up and supporting your teams, and evolving your business for the years ahead is not only important. It’s completely essential.
A guest blog by Sally Lawson, CEO & Founder at Agent Rainmaker. Head to agentrainmaker.co.uk for more information.
