Getting landlords is core to letting agents & property managers (duh!). But that’s the hardest part of growing the number of instructions for your letting agency.
Why is getting landlords so difficult? Are there ways to combat the challenges?
Below are some of the challenges letting agents face that need to be overcome, to keep attracting leads and ensure a steady pipeline of business.
Finding Landlord leads!
The first is where to find the leads. In modern times you can forget leafleting & newspaper ads. These types of advertising mediums are often ignored and not cost effective.
Digital advertising is key. You need to be savvy with Google Adwords and familiar with terms such as cost to click ratios, negative keywords and Ad Groups.
In addition what about lead generators? At Rent Round our bread & butter is generating landlord leads. We provide an easy way for landlords to compare agent fees & performance, therefore generating consenting leads for letting agents.
Location Location Location
Being letting agents, you’ll already know about the importance of location.
If your location is on the high street, you’ll benefit from higher footfall and therefore drop in leads.
But letting agents with leases on the high street now face a different problem. The high street is dying, less shops are operating with consumers preferring online shopping, which means less footfall (therefore less letting agent leads).
The challenge to letting agents is now ensuring their expensive high street rent costs remain cost efficient. With less demand for vacant high street property, letting agents need to negotiate better rates to ensure the cost of the premises doesn’t outweigh the walk in business.
Letting Agent Swaps
The average landlords is aged 40-55 years old, live close to their rental property and a proportion of which have multiple buy to lets.
With the ‘older heads’ they already have contacts in the industry. When they get a new property, they’re likely to use the same agent to avoid having to talk to multiple different agents across their portfolio, rendering a lot of your marketing pointless.
When one of their properties or a room in their property does become vacant, even if they were unhappy with their current agent, landlords rarely switch providers.
The main concern for them is to get a tenant in as quickly as possible as opposed to taking a pause and shopping around for a new letting agent.
The new generation of younger landlords have been brought up on different terms.
Loyalty to companies has reduced and personal relationships with companies come far below in the priority table as compared to price.
The new generation has been brought up on comparison sites. Home insurance, car sales, mortgages – they all are now easily comparable, with price differences & ratings all available in a few clicks. Sites like Go Compare & Money Super Market save people £1,000’s.
This is why an online presence is critical (yes we are banging on about it), including being high on google ratings.
Rent Round is the Go Compare for the letting industry. We offer landlords the chance to compare letting agent fees & ratings, then choose which agent to pass their details onto.
Online Letting Agents
Online letting agents are cheaper. They often offer fixed prices & have expensive digital marketing budgets. Just Google ‘Letting Agents’ and you’ll see PurpleBricks, Howsey, OpenRent etc paying to be top of the search results.
Traditional letting agents need to be able to have these conversations with their landlords. “Yes we know there are cheaper alternatives, but….”
Local expertise goes a long way. Demonstrating you know the area, aware of upcoming profitable purchase, know local pitfalls etc go a long way.
At Rent Round we compete for Google rankings against the above mentioned companies. Listing with us will help get the savvy landlords who are comparing fees & performance to notice your agency.
Keeping the current landlords happy
A very high proportion of landlords go into obtaining multiple properties. So expanding the number of properties your letting agency manages, is easier through existing clients than finding new landlords with property.
It’s key that landlords heads aren’t turned by other letting agents, creating doubt their next property will be handed to your agency.
Ensure if you have a landlord in Kensington, you’re feeding them information about the Kensington market.
How are property prices looking in Kensington?
Any new properties like their own current portfolio available on the market?
Did a new competitive mortgage offering just open up which can help the landlord finance a new property?
Staying close to existing landlords is essential, demonstrating local knowledge and your appreciation of their business goes a long way.
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