Letting Agents – Do you still do too much for free?
If you want to BEAT the Tenant Fee Ban, then some changes need to be made to your business model, in fact you need to find a way to seriously increase your income without increasing your workload… right?
I know, it’s tough… I hear you. It’s a challenge, you want to give great service, be the best, really look after your clients and get referrals as a result, which means you’re flat out and doing more doesn’t seem like an option…
But have you ever wondered or worked out what you or your team are actually doing for your money versus how much you SHOULD be doing exactly? And is it fair that the clients that DON’T ask for the extras, pay the same as those that do? You see right now, one size no longer fits all.
So, what if, some of those “extras” actually could be the basis of a new service or add on product and be the answer to replacing the soon to be lost income or growing your business?
In my research, I have found that letting agent’s property management departments are typically spending at least 25% (and sometimes as much as 50%) of their time doing stuff they are not contracted to do at all, like emptying metres, attending court with barristers/landlords, identifying property boundaries for owners, or in one case we identified a PM finishing a snagging list with builders for a refurb on a property that a landlord had bought and we didn’t even manage!
Also there are many instances where agents are still allowing their staff to offer free advice to landlords on what properties to buy, carrying all the liability that goes with that and charging no fee… A service that could generate over 100k per year and lots of new instructions, if structured properly. These are just a few example of hundreds of possibilities of where with a small tweak, agents can add extra income to their businesses.
The thing is, some landlords don’t want these extra services, but effectively if you don’t charge for them, what this means is ALL your clients are sharing the cost of these and that’s not right. It makes sense to restructure your fees, so that those that want these services, have the option of them and pay for them accordingly, whereas those that don’t, don’t, get where I’m going?
I’ve been talking to thousands of letting agents across the country about this a lot, and I believe that right now in the letting agency world for the first time in decades, all agents are looking at their services, businesses, fee structures in a completely new way, so that they can compete with the onlines, stand out and make a difference to their network and add value to their clients…
So if you had to take some of the “top level” services out of your standard management service what would you move? How much would you charge? And if you had to create a base level service, what would you include?
The real benefit of creating a 3 tiered service is that you can in detail really explain to your potential and current clients exactly what you “do” for your money and they can chose what they don’t want equally.
For more information check out www.propertyagentscircle.co.uk/Intensive