Agency guide to creating additional landlord services
In the first in a series of guides for agents, Sally Lawson, former ARLA president and expert in supporting the lettings industry to generate leads and increase revenue, explores how you can build a suite of additional landlord services to add revenue and profit to your business.
Agency guide to creating additional landlord services
The ‘add-on’ product is everywhere. It’s next to the till at your local supermarket, popping up as a suggestion on your favourite website, and offered as a meal deal option at every single fast-food restaurant you’ll ever have visited.
As customers, we’ve become so used to being offered these add-ons that we barely bat an eyelid when asked to consider a bundle, deal, or extra purchase.
And yet despite seeing almost every other industry having great success via this method, the world of lettings hasn’t quite got its head around how to do the same.
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If you have taken a cash deposit, you must protect it in a government authorised scheme within 30 calendar days
Lettings and management
Lettings and management are the core staples of every letting agency – and yet those who have ventured into the world of the add-on are seeing their business grow without adding a single landlord to their books.
Because when you think about all the things landlords need, it amounts to much more than those two services offered by all agents. When they’re thinking about adding to their portfolio, they might want support to find their ideal property.
They’ll certainly want up to date mortgage advice to ensure they’re on the best deal possible.
If they find a property that needs some TLC, who’s going to help them refurbish and get it ready for tenants? And if they’re keen to get it let as quickly as possible, an escalated marketing effort would be ideal.
And who’s got the knowledge, skills and contacts to do all of the above? That’s right: letting agents.
Productisation
Productisation may sound like a complicated process, but in reality, all you’re doing is creating a menu of services for landlords to choose between.
It may be that they opt to stay with the exact same service that you’ve always offered them, but many will see the benefit of you supporting them with other aspects of the management and growth of their portfolio.
There are many options when it comes to adding services to your ‘menu’ – what’s crucial is you give each service a name (a key part of productisation). And of course, you must ensure the service is beneficial to your landlords, and also helps your agency grow.
One of the ways I grew my letting agency many years ago was to begin a refurbishment service – this means I was bringing in money on that property before any tenants had even moved in (and it also increased the rentable value of the property, meaning a higher number of prospective tenants would normally view it, and it was likely to be rented out at a higher rate).
This shows how worthwhile it was to all of my landlords – because who wouldn’t want an opportunity to improve their portfolio, set rent payments at the kind of rate a newly-refurbished property goes for, and have a better chance of letting the property out as soon as it’s ready?
And ultimately, it’s better for the tenants too because you’re increasing the standard of rental properties on the market. A win all round.
Protect your deposit today
If you have taken a cash deposit, you must protect it in a government authorised scheme within 30 calendar days
VIP management
The budget landlords have at their disposal to invest in the management of their portfolio will naturally vary quite considerably – and those on the higher end of that scale may well opt for a VIP management service if you have one available.
It’s something the industry tends to shy away from – but again if you look at other sectors such as hospitality, fashion, or travel, there’s always a premium option for those who want to upgrade from the standard service.
A proportion of the letting agents that Agent Rainmaker has mentored over the past five years have taken up the option of incorporating a VIP management service – and they report that an average of 30 per cent of their landlords have taken them up on the offer.
It’s not going to be something everyone wants, and the added benefits have to make taking the upgrade worth the additional cost; but if you don’t offer it then exactly zero per cent of your landlords can choose that option.
Make it worth it
Add-ons aren’t about having an additional product available just for the sake of it. Extra services you incorporate into your agency have to be worth it for all three parties involved in the rental market: you, your landlord, and their tenants.
If it’s taking your team all their time to provide the additional services so they’re not able to fulfil the other parts of their role, or if it’s not solving a problem for the landlord, then it’s simply not worth it.
It’s all about adding value: extending your menu but ensuring every product on it is a tempting offer.
Author – Sally Lawson, Agent Rainmaker
Sally Lawson established her own lettings agency aged just 18, growing a franchise network responsible for many thousands of properties across the UK before turning her attention to coaching and mentoring other agents.
Alongside her Concentric Property group, the former ARLA president is committed to transforming the fortunes of other agents through the Agent Rainmaker training enterprise. Visit agentrainmaker.co.uk for more information.