The most obvious question before starting a letting agency is how to start finding new tenants and landlords on a limited or zero marketing budget, and which comes first, the Landlord or the Tenant? We demonstrate the correct approach to help ensure you start generating income quickly.
The most effective methods of sourcing new Landlords and Tenants are virtually cost free and don't require any spend on advertising. From our experience, we know what works and what doesn't work. For example, running an ad in a local magazine doesn't provide an immediate return. Also, the majority of Landlords you'll work with don't live locally so possibly wouldn't see your ad anyway.
In respect of the way people search for properties, the internet has had a huge impact on our market, with 98% of people now searching for properties online. This places all agents on a level playing field where it can be easily demonstrated that a high street presence isn't required to find new Tenants. There are numerous popular property portals which are still completely free to use and will reliably build your tenant waiting list in the beginning stages.
One of the advantages when offering Landlords your service, it will be on a "No Let No Fee" basis, therefore allowing you to quickly add properties at no initial risk or expense to the Landlord who will then ultimately decide on which Tenant to accept into their property.
We demonstrate a list of unique selling points which will help you differentiate yourself from the competition and how to use being a smaller agent to your advantage. For example, advising Landlords that as a smaller independent agent, you will be in the position to dedicate more time to Landlords on an individual basis. For Landlords, because finding tenants is easy, even if you are using free property portals, it's important to focus on demonstrating how you will look after their property on an ongoing basis by for example promoting the quality of your inventory reporting system or advising Landlords that they will enjoy immediate access to senior members of the team at all times. Based on our own experience, we can show you how to achieve this. You can also offer free rent guarantee and legal cover for the first six months of any managed tenancy, which is low cost and can become an additional revenue stream in the future. We also provide the necessary marketing templates required when selling your service.
Also remember, that the average landlord will own 8 properties which therefore means you don't necessarily need a large landlord client base to benefit from a great income. As an added selling point, you can offer 1-2-1 support for Landlords on wish to build their portfolio, researching the local market for future investment properties that your Landlord can purchase and be managed by your agency.