With the Tenant Fee Ban firmly in place, ARPM is aware that some letting agents and property managers still haven’t planned how their business will adapt to the loss of income. It could be your lettings agency is experiencing a false sense of financial security, with revenue from the first half of 2019 – which will include tenant fees – bolstering bank balances. The drop in revenue will, however, bite in the near future.
Let’s face it, it’s one thing implementing the Tenant Fee Ban but it’s another to continue running a profitable lettings business now a massive income pipeline has been cut off. Everyone’s advice and rhetoric was more than evident before the 1st June 2019 but what about now?
While other sources of advice may have dried up, ARPM wants to support letting agents who only now find themselves adrift without tenant fees. This will especially resonate with let-only agents whose ability to earn has been severely curtailed. Below is our four point action plan – help for those who have left it late to plan for the Tenant Fee Ban.
Make the most of natural wastage
Wages will probably be an agent’s biggest overhead and now is the time to decide whether to replace people who leave or to investigate a smarter option. Resignations and retirements can present a positive money-saving opportunity as there is the option to outsource the role – whether that’s a property manager, administrator or a rent collector. When you outsource a job to ARPM, you pay per property and not an annual wage, which carries attractive budgeting benefits.
Start a property management division
There is literally no money left in let-only, with property management now the stand-out star in lettings. The good news? There’s no need to start a property management division from scratch. You can outsource pre-tenancy administration, maintenance, rent collection and full management to ARPM, benefiting from our team, software systems, training and experience, and gaining a new, income-generating department virtually overnight.
Examine all overheads
There are many areas where a letting agent can save money, and re-negotiating contracts and deals should be an important part of creating a stronger future. Areas to assess include your broadband, telephone service and utility deals; car leasing agreements; printing and digital service suppliers; IT support; mobile phone contracts and even credit cards. Shop around, haggle and ditch anything that isn’t essential.
Explore new revenue streams
Referral fees are a great way to boost income, and letting agents can develop fruitful partnerships that also benefit landlords and tenants. Start a conversation with an independent financial advisor and you could earn when landlords take out insurance products and buy-to-let mortgages with your chosen finance partner. There are also referral fees attached to utility and media switching services, which can be promoted to movers as money-saving initiatives.
Get in touch today and we’ll explain how ARPM has already helped map out a stronger, brighter future for letting agents across the UK, harnessing the power of outsourcing to drive down costs and increase service levels.
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