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The property rental sector is weathering some challenging conditions. Survival in the face of the fees ban and increased legislation has seen agents taking a serious look at their business models. Naturally, they\u2019re looking for sources of income to plug the shortfall, and crucially, ones that won\u2019t alienate their landlords or upset tenants. They\u2019re looking for savings on input costs, efficiencies in their operation and technologies that will streamline their admin.<\/p>\n
So, they should. But agents are operating in a market that\u2019s increasingly competitive for both themselves and their suppliers. In my opinion, there are businesses in this sector now, which are resorting to worrying methods. The adage tells us that all that glitters is not gold, but a few companies are dangling some very sparkly carrots in an attempt to gain extra business.<\/p>\n
One of the shiny offers is a tenant reference at a rock-bottom price. In the short-term, a cheap reference might seem to be okay. As a one-off, it may not result in any problems for the landlord \u2013 after all, it\u2019s only a proportion of tenancies that become troublesome. But when you keep trusting to luck, sooner or later it runs out.<\/p>\n
A cheap reference is cheap because less work has gone into it. The digging and delving that reveals the subsurface risk factors hasn\u2019t been completed. And the problem with trying to save a few pounds on a reference is that the long-term costs can run into thousands for your landlord. Your saving could cost you a landlord with a single property. it could lose you a portfolio that represents a significant portion of your income.<\/p>\n
Besides the sparkly carrot of a \u2018bargain\u2019 reference, other tempting offers are being made. I\u2019ve seen figures quoted for commission payments that, frankly, don\u2019t stand up. And I\u2019m prepared to explain why to any agent who cares to get in touch. If someone is telling you that you could be earning \u00a3200 or \u00a3350 on each tenancy, I\u2019m the bearer of bad news. You\u2019ll find more realistic figures are up to \u00a3100.<\/p>\n
It\u2019s understandable that agents are looking for a great deal from all their suppliers, but there\u2019s more to a great deal than price or an over-inflated lead conversion rate. A great deal includes factors which I believe are business essentials: quality, honesty, respect and trust. You could sum it up as service, but in many ways, it\u2019s more than that. It\u2019s about knowledge, experience and going the extra mile. It\u2019s about building relationships with your customers where you don\u2019t promise commission payments that will never materialise. It\u2019s about remembering that landlords are people we should be doing our best to look after, rather than jeopardising their financial security.<\/p>\n
If someone is promising five or ten times the commission earnings that others predict, ask yourself why. If they offer a reference at a bargain price, consider the time and attention you\u2019re getting for your money. If you\u2019re happy with slapdash, go ahead and face the consequences.<\/p>\n
The problem with these flashy headline offers is that there\u2019s nothing to support them. No long-term strategy and no commitment, nothing on which to build a successful and ultimately profitable trading relationship. Times may be challenging, but it still makes more sense to deal with the reality in a way that is sustainable.<\/p>\n
In short, if a deal looks too good to be true, it probably is.<\/p>\n","protected":false},"excerpt":{"rendered":"
The property rental sector is weathering some challenging conditions. Survival in the face of the fees ban and increased legislation has seen agents taking a serious look at their business models. Naturally, they\u2019re looking for sources of income to plug the shortfall, and crucially, ones that won\u2019t alienate their landlords or upset tenants. They\u2019re looking […]<\/p>\n","protected":false},"author":2,"featured_media":5868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[63,2089,2183,21],"yoast_head":"\n