Whilst the Tenant Fee Bill has been called into draft, it still needs to pass through several different phases before it can be actioned.
Firstly, the bill needs to be considered by the Parliament’s Communities and Local Government Select Committee, a process which can take several months. Following this, it will have to be formally presented to Parliament before being taken to debate at the House of Commons and House of Lords. All clauses and amendments would then need to be refined and finalised before before being approved by Royal Assent.
Although there is no timeframe set on the legislation, the Tenant Fee Bill is in draft, which means the motion of change is already in gear. It is therefore vital for letting agents to start proactively preparing for the changes ahead by future-proofing their agencies.
The best way to do this is to consider alternative revenue streams to minimise the impact of the ban. Replacing lost revenue doesn’t have to be the burden many agents are anxiously anticipating, in fact, it is an opportunity to find imaginative and enterprising alternatives that propel business success without relying on tenant fees.
So how can you create new revenue streams for your lettings agency?
Move your business into the future by introducing new means to streamline your existing processes. This will reduce your operational costs by reducing time spent on admin. It will also help you stand out on the market and become recognised as an efficientand forward-thinking agency. You will also win back your time and thus reduce costs. One way to do this, is to keep up with technology and utilise external products such as e-signing and e-payments. You can also cut business costs by reducing your overheads by making a change as small and simple as switching to online payment services.
Refocus your time and energy on affirming solid relationships with landlords and tenants to retain your customer base and make it as strong as possible. When thinking about redirecting your attention back to the customer, be mindful of the fact that the traditional approach of simply trying to acquire more landlords won't be enough. Examine what customer service means for your personal customer base, and then excelling in providing the best service.
Think of how to generate new revenue streams by acquiring new products and diversifying your business offerings with additional services such as rent protection insurance.
In summary: next steps
- Diversify your product offering
- Collect data on what your customers actually want from you
- Re-define your services by bringing more time to your staff, and therefore additional revenue streams