There will be many of you who place little to no value on statistics published in the press but there is no escaping the sentiment behind the results of a new survey, which showed landlords are serious about cutting costs.
The poll, conducted by Kent Reliance in January 2019 among almost 500 landlords, found 36% are already reducing or planning to reduce spending. Worryingly, a quarter were looking to do so by cutting out their letting agent.
It’s time to LOWER your management fees
It’s headline-grabbing stuff and whether you believe the figures or not, the intent is there. It is not all doom and gloom, however. Letting agents need to change their mindset now and explore the option of actually lowering management fees but in a way that doesn’t affect their income. In fact, a smart move could actually increase an agent’s revenue and improve the services it offers.
Let’s look at the detail. The survey found landlords who wanted to save on agents’ fees were looking to cut their spending on property professionals by 30%. Now let’s juxtapose this with the survey’s findings that landlords are spending an average of £935 on letting agents’ fees. That’s a savings goal of £280.50 per year, or roughly £23 a month if you spread the sum over 12 months. Can you find a way to cut that from your management fees so you present the type of saving landlords want to make?
Outsourcing is an option
Many letting agents have already partnered with ARPM to cut the fee they charge landlords, without compromising their brand, service or quality. They tap in to our scalable service, fully resourced department and white-labelled products to reduce their own property management bill. How?
With ARPM, agents buy our outsourced management services on a property-by-property basis so they’re only spending on what they really need – there’s no over-resourcing or wasted hours. Our partner agents quickly discover they can add a mark-up to our costs for their own gain and still offer a cheaper management fee to landlords.
The Kent Reliance survey also highlighted that landlords wanted reduce what they spent on property maintenance and mortgage repayments, so letting agents are actually in a strong position to be retained. ARPM offers a planned and emergency maintenance package with very competitive rates, which could provide landlords with instant financial savings, while we’re sure most letting agents could facilitate a meeting with a mortgage adviser to discuss remortgaging to a cheaper buy-to-let loan.
When it comes to retaining landlords, there’s actually nothing to lose – it’s all to gain. Be proactive today and contact ARPM to discover how we can lower your property management fees.
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