Buy-to-let is busy busy busy but is it the kind of business that makes you money? The traditional spring bounce is here and has been reflected in the latest Private Rented Sector Report from ARLA Propertymark. Its latest analysis reveals a rise in the number of new prospective tenants in February 2021 – increasing to an average of 82 registered per branch.
Interestingly, this year’s seasonal uptick is a marked increased on the same period in 2019, when the average was just 65 new prospective tenants registered per branch. While it’s lovely to have so many tenants enquiring about properties, they zap time and resources while no longer providing an income stream. New tenants also create a pile of paperwork to complete, with letting agents and property managers bogged down in their slipstream.
Time should, however, be concentrated on managing the profitability of both the lettings business itself and that of landlords. ARLA Propertymark’s data also showed that rents rose in February too, with almost half of tenants noticing that their landlords had increased the rent. Have you got enough time to consult with the other half of landlords on rental value strategies to improve income?
And how about growing the number of landlords who use your full management service? Efforts to win new business are definitely needed here as ARLA’s figures also reveal the number of properties managed per letting agent branch fell for the third month in a row from 196 in January 2021 to 195 in February 2021.
If you’re juggling too many not-for-profit tasks and would like to redirect resources, think about outsourcing pre-tenancy tasks and labourious admin to ARPM. Let’s open a conversation today.
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