PRS: A growing sector
What an impressive document the 2018 English Private Landlord Survey (EPLS) is. This national audit of landlords and letting agents who own and/or manage privately rented properties in England was last carried out in 2010, …
Could let-to-buy or even let-to-let become the new norm in the property market? The reflection comes after new figures suggest sales fall-through rates are much higher than previously thought. A report from Post Office Money discovered that 44% of sales fall through within four weeks of an offer being accepted. This is higher than the 25% to 33% figure usually touted within the sales industry
That leaves almost half of home movers having to start again from scratch, with no guarantee of a successful transaction. While the road to a successful sale can be rocky and prolonged, with fluctuating house prices, conveyancing delays, cold feet and chains that involve multiple parties, the path to a rental property is often far quicker and simpler.
Despite a climate of uncertainty – whether that’s Brexit, interest rates or job prospects – people still need to move house. Letting out a property instead of selling will make owners attractive chain-free prospects and put an end to a potentially fruitless search for a buyer. Renting instead of buying is also an option for those who need to keep their options open while retaining assets.
Renting isn’t the preserve of just students and young professionals. Dual agencies can use lettings as a useful chain-breaking tool in the current market. Let’s face it – many home movers are reluctant to trade up or commit to a bigger mortgage until they see how the post-Brexit will landscape look. Lettings is a perfect option as it buys them time, gives them flexibility, and can be short term. The key is to keep clients and generate loyalty – helping them in the short and long term, whether that’s sales or lettings.
What if you’re not a dual agency but you can clearly see the benefit of starting a lettings department? Outsourcing rent collection, tenancy administration and property management is the quickest and easiest way to get started. It means agents don’t have the expense of hiring skilled, qualified lettings experts or retraining current staff. Instead, agents who partner with ARPM Outsourced Lettings can tap into an existing, experienced team who hit the ground running to create a new department virtually overnight.
With ARPM in place, agents can use existing resources to diversify, create a new public-facing lettings department and focus on creative ways of helping home movers.
If you’d like to explore the idea of lettings, contact us today. We can explain how we’ve already helped sales-only agents move in to lettings with the minimum of fuss.
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