Agents do go the extra mile for their customers. We think that your customers should know this. We look at the ways in which you can convey your value.
Endsleigh insurance are championing letting agents. In a recent article, published on the Letting Agent Today website, it’s been reported that a new survey - compiled by the insurance firm - has found that letting agents save landlords around £1,910 a year.
2016 brought ups and downs for the lettings sector; the letting fee ban and several tax and regulation changes are just some that immediately spring to mind, so this news will be welcomed by many property professionals.
The article states that there is “…widespread misconceptions among landlords about the value for money offered by letting agents”, going on to discuss the reasons why good agents are worth their weight in gold, highlighting that “[m]ost of the savings for landlords are created by agents minimising void periods when compared to landlords who go it alone marketing their property.”
Pro-actively locating tenants for landlords only tells half the story though, with a whopping ’76 per cent’ of the survey respondents noting that the ‘other services offered – such as legal and financial information – go some way to contributing to a deduction in overall costs’.
“The survey suggests that the relationship between letting agents and landlords are not about financial benefits alone…Of those landlords who use an agent, 50 per cent were most attracted because of their local knowledge, and more than two in five claim that excellent service is a deciding factor.”
However, in a separate report, it’s been reported that ‘over a third of all landlords have never used a letting agent’, choosing instead to manage all their properties themselves. The findings come off the back of a report commissioned by the Council of Mortgage Lenders, and has been described as the ‘largest ever survey of private rental sector landlords in the UK’. The survey also highlights some points that could give agents some food for thought, asserting that more landlords are ‘expected to reduce their property portfolios’ over the next 12 months.
Evidence, published on The Negotiator, goes some way to explain the perceived trend for 2017, noting that “[f]orty seven percent of the 1.1 million landlords who use letting agents say they would self-manage their properties if their profits began to fall following the taxation changes due to kick in next year .”
There’s no denying that the sector is facing a tough time. As of April 2017, tax relief for landlords is changing and it’s predicted that a significant number of landlords and agencies will be hit hard by it. So the first 3 months of 2017 should be considered as a good time for agents to consolidate their businesses and re-evaluate how they are currently conveying their worth to their clients and prospects. As Richard Price, Executive Director of The UK Association of Letting Agents, declares:
“’As landlords’ cost inevitably rise, agents will need to do more to position themselves as indispensable, and make it obvious that they provide value for money…Otherwise, as future tenancies come to an end, landlords will either shop around or start to consider self-managing their properties.’”
It’s clear that now, more than ever, agents will - once again - have to prove their worth and make themselves truly indispensable.
One way of doing this is to re-evaluate your value proposition to your current and prospective landlords. Fundamentally, value is what a customer gets in exchange for the price he/she pays for a commodity. So, in order to keep on generating business, your proposition has got to be first-rate, but, crucially, it’s got to show its wealth. In a time of continued political and economic uncertainty, it’s no longer enough to be a business that says ‘trust us’.
When is comes to being a successful, businesses, no matter what industry that they are in, should strive to always ensure that they are conscious of the 3Ps: personal, preference, and productivity. Personalising your communications reinforces the value of your relationship to your customers. Making your campaigns target specific by using preferences will discourage people from unsubscribing from your campaigns and ensure they only ever receive what’s relevant to them. Finally, always try and and work in the most productive way possible.
BriefYourMarket.com’s system is designed to help you convey your value proposition to your customers and prospects, make your communication personal, and ensure that you’re working productively. With this in mind, throughout 2017, we’re going to be looking at the ways in which the system can be used to achieve great results. First on the list in our new ‘Get more from BriefYourMarket.com’ feature is newsletters.
It’s great that letting agents are saving landlords money, and it’s certainly something that your agency could be conveying to your database and prospects. That’s the beauty of BriefYourMarket.com’s intelligent newsletters – we enable your agency to spread your good news and tell your customers and prospects the kind of things they want to hear to help win you more business.