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We\u2019ve heard the protests, the lobbying and the arguments why a ban is unfair, but this is a battle that letting agents won\u2019t win. If you\u2019re burying your head in the sand or hoping for a change of heart from Whitehall, we\u2019d like to suggest you take a bit of constructive action instead.<\/p>\n
If you\u2019re currently charging fees to tenants, it\u2019s possible that your existing business model will become unsustainable in the very near future. Even if you\u2019re not sure where to start, start preparing right now. There is a lot you can do. Some of the ideas that follow may not work for your business, but at this stage, we suggest that everything should be on the table for debate and discussion.<\/p>\n
Firstly, make sure you understand exactly what is covered by the ban. Make sure you\u2019re aware of the penalties too because they\u2019re serious. The legislation is still making its way through Parliament and it is being amended, but make sure you stay up-to-speed. Agents in Wales will need to watch closely as their own rules pass into law.<\/p>\n
A sure way to inject a bit of pace in your fees ban planning is to work out what would happen if you changed nothing else but lost all your income from fees.<\/p>\n
Once you know what you\u2019re up against, it\u2019s time to examine your business model. Where does your income come from and what will the ban do to your revenue? What are your outgoings, fixed and variable? Which market are you serving? How strong is your brand, image and reputation? Do you retain landlords? Is your business healthy and growing? Who are your competitors? What are your ambitions?\u00a0 You\u2019ll think of many more questions, but when you\u2019re involved in the day-to-day process of running a business, the bigger picture can be forgotten. Now <\/em>you really need to know what that picture looks like.<\/p>\n We don\u2019t want to be too obvious, but if you\u2019ve been reliant on fees you will <\/em>need a new business model. The following ideas may help you to develop it.<\/p>\n Increasing your efficiency by embracing technology will save money and help you to offer a better service to your landlords and to potential tenants. If you can find software that\u2019s easy to integrate, go for it. Switching between systems is a hassle no business needs.<\/p>\n The tenants you serve are going through a relocation process. The list of things they will need is massive. You can earn income by referring them to utilities suppliers or insurers. Don\u2019t dismiss referral fees as irrelevant. Rates vary but can be very generous, and some of our own letting agents earn substantial commissions.<\/p>\n If there\u2019s waste or inefficiency, cut it out. Don\u2019t be sentimental \u2013 ask the tough questions. Is everyone on the team pulling their weight? Do you need your high street location? Can you secure a better deal on your rent, your vehicles or your utility bills?<\/p>\n Are there businesses whose products or services align with your tenants or landlords needs. What about forming partnerships with maintenance, gardening or removals service providers?<\/p>\n Maybe you\u2019ve got in-house payroll, IT or accounting staff. Can you get the services you need without the costs of employment?<\/p>\n The letting agency business will be going through a big shake-up. Attracting new landlords and retaining them will be key to survival.\u00a0 Can you offer more support, better management or better rates?\u00a0 Can you improve the way you present your landlord\u2019s properties?<\/p>\n Can you open on Sundays or offer more flexible arrangements to view properties, for example.\u00a0 Your reputation depends on good feedback from all your clients \u2013 even those who aren\u2019t going to be paying you.<\/p>\n Some letting agents will quit the business. Others may be looking to merge for economies of scale. Look for the opportunities to build a different but perhaps stronger agency.<\/p>\n Can you use the fees ban to your advantage? Could you get good publicity and gain business by implementing the change before it comes into force?<\/p>\n This will be a big change. There\u2019s no doubt about it, but it could be the impetus that starts you on the road to great things. Don\u2019t be afraid of it. Get excited about the possibilities.<\/p>\n If you\u2019d like to learn more about our referral commissions, just call us on\u00a00344 567 4001\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" We\u2019ve heard the protests, the lobbying and the arguments why a ban is unfair, but this is a battle that letting agents won\u2019t win. If you\u2019re burying your head in the sand or hoping for a change of heart from Whitehall, we\u2019d like to suggest you take a bit of constructive action instead. If you\u2019re […]<\/p>\n","protected":false},"author":2,"featured_media":5053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2169],"tags":[],"yoast_head":"\nDeveloping a new business model<\/h1>\n
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And finally \u2026<\/h1>\n