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A few months ago, I was lamenting the loss of a few substantial accounts. Lured away by an attractive headline price for tenant referencing, the clients took their business to our competitors.<\/p>\n
In theory, it would have been possible to keep the business \u2013 if we\u2019d been prepared to reduce quality and restrict the service we offered, but nobody at Legalfor<\/em>Landlords would have been happy with that approach. We\u2019re proud of doing a great job, so we carried on doing things our way.<\/p>\n Well, it turns out that the old saying right. The grass isn\u2019t greener on the other side of the fence, after all. This month, we\u2019ve seen 3 of those accounts return. \u00a0Their reason: their experience with the new supplier didn\u2019t match the promises made. In short, they\u2019d been told they\u2019d be getting more for less and they weren\u2019t. People can talk about smart systems and efficiency all they like, but there\u2019s a limit to how far that can take you. The truth is that it costs more to deliver more.<\/p>\n The property rental industry has been bashed and battered recently, and it\u2019s now in transition. We\u2019re becoming a highly regulated sector, with more responsibilities, increasing professionalism and slimmer margins. It\u2019s no longer a piece of cake to make money. And because it\u2019s getting harder to get the returns, there is a temptation to focus on cost-cutting. The problem with this tactic is that it ignores the necessity of looking after your clients\u2019 best interests.<\/p>\n Letting agents who attract landlords with a seemingly unbeatable offer are treading a very dangerous path. If their business model is based on low cost, when things go wrong \u2013 which is very common in property \u2013 there\u2019s no easy way to rectify the situation. For example, a relationship with a landlord could be destroyed by a tenant reference that missed key information. Poor service from the letting agents\u2019 suppliers always filters through to the consumer \u2013 the landlord or tenant \u2013 and that\u2019s where the damage hits home. I always say that lettings agents should prioritise looking after their customers and their investment. Offering them a dirt-cheap deal isn\u2019t looking after anyone. It\u2019s neglecting responsibility.<\/p>\n We\u2019re always hearing stories about what our clients have been offered elsewhere. When these proposals are explored further, the prices are good, but there are hidden costs to tenants, monthly subscription fees and transaction fees. Sometimes there are lengthy, restrictive contracts. In some cases, letting agents are pushed in the direction of a particular provider by their software supplier. In these circumstances, letting agents aren\u2019t getting what they want. What they want, surely, is a quality reference, great customer service and value for money.<\/p>\n As well as returning clients, we\u2019ve just taken on two entirely new accounts. These have been secured precisely because we\u2019re not \u2018cheap and cheerful\u2019. The clients understand that a better-quality reference, superior customer service and a common-sense approach are what their business needs to thrive.<\/p>\n We\u2019re not afraid of this competitive marketplace. Yes, it can be challenging, but that\u2019s good for us \u2013 it keeps us on our toes and keeps us delivering our best. That, I believe, is what letting agents should focus on \u2013 delivering their best in the best interests of their clients to maximise retention and overall returns. In that equation, the price of a reference is only a very small part of the picture.<\/p>\nThe problem with decisions based purely on price<\/h1>\n
Using common sense to deliver great value<\/h1>\n