{"id":9845,"date":"2022-06-29T08:23:58","date_gmt":"2022-06-29T08:23:58","guid":{"rendered":"https:\/\/dev.withcreative.co.uk\/lforl\/?p=9845"},"modified":"2022-06-29T08:37:21","modified_gmt":"2022-06-29T08:37:21","slug":"why-every-landlord-counts-by-sim-sekhon","status":"publish","type":"post","link":"https:\/\/dev.withcreative.co.uk\/lforl\/why-every-landlord-counts-by-sim-sekhon\/","title":{"rendered":"Why every landlord counts – by Sim Sekhon"},"content":{"rendered":"

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\nWhy every landlord counts – by Sim Sekhon.<\/p>\n

There was a time when agents focused on sales. It was the source of their income and the speciality they proudly promoted. But times have changed. We went through an economic crash and lending became more controlled. More people were renting, and not just as a short-term move.<\/p>\n

Agents who had shouted about their \u2018sales only\u2019 business model had to change and change fast. Some added the word lettings to their advertising, others went for a major rebrand. It seemed that, suddenly, every agent had become a sales and<\/em> lettings expert.<\/p>\n

For some, there was no immediate realisation this change had the potential to strengthen their business. But as they started to manage properties, they registered the benefit of a growing and consistent income stream. Economic factors were still at play, throwing the sales market through its peaks and troughs but rental income was steady and reliable. Just look at COVID as a prime example of this. 90-95% of agents\u2019 income was protected whereas sales pretty much ground to a halt. Although sales have picked up since, the cash flow they generate remains highly variable. A delayed completion can be a real issue.<\/p>\n

For many agents now in the sales and <\/em>lettings business, their traditional business of sales still feels like the priority and the source of their income. But the real money is in property management. Achieving higher multiples on exit is all in relation to the lettings side of the business.<\/p>\n

Let\u2019s look at some numbers, starting with the value of a single lettings instruction. According to the latest statistics:<\/p>\n