Are there really fewer landlords than before?
With the constant pressure to find new properties to satisfy the continued tenant demand and grow your lettings portfolio, finding landlords seems to be getting harder than ever.
Does it feel as though new landlords are non-existent? With property prices rising the lack of affordability for many means that surely rental properties would be a sound investment - but high property prices are also a double-edged sword for landlords. While they could provide higher capital gains in the long term, they deter many new landlords from entering the market.
In addition, many existing landlords are selling their properties to cash in on these high prices or find that with their own growing mortgage and interest rates, the yield on a rental property is lower. Combined with recent legislative changes it feels as though the exit of existing landlords is further exacerbating the shortage of rental properties.
Having said that, the private rented sector is still perceived by many as a great market to invest in; so the challenges to overcome are all about how to find and encourage new landlords into the market, as well as how to attract them to your specific agency.
Remembering that only 50% of landlords are currently using an agency, there’s a huge market out there for your services. The key is in helping landlords understand how they will benefit from your service, and to ensure that they can find you!
9 ways to find and attract landlords:
1: Invest in marketing
Ensuring your agency stands out is crucial for attracting new landlords. Additionally, it's essential to persuade potential landlords to consider property investment and letting through your agency. Well-crafted marketing materials tailored to landlords can streamline the process of demonstrating the benefits of your services and draw in landlords seeking agents.
Tailoring content and marketing materials to your target audience is key. Understanding what landlords value and where they need assistance is paramount. Engage with them directly to gather insights. For instance, create location-specific blog posts like "Maximising ROI on buy-to-lets in {your town}" to address their specific needs and interests.
2: Build your agency's reputation
It's also important to consider the reputation of your agency's brand. Position your agency as professional, knowledgeable, and the obvious choice to maintain and protect a landlord’s investment.
As well as a personalised approach to each customer, think about providing helpful industry information around areas such as interest rates, occupancy rates and yield averages. This helps build customer confidence in not just your agency but in entering the rental market.
Think about hosting a series of seminars – where some of the professionals you’ve got to know through your networking strategies field questions from your guests. If done well, landlords will feel informed and confident, with realistic expectations of the business relationship they are about to engage in.
3: Offer a unique service
To encourage landlords to consider entering the property market and renting with your agency, it's crucial to highlight the added value they can experience with you, specifically. You must demonstrate that there's more to renting a property than mere transactions and convey that your agency uniquely offers this added value.
Set yourself apart by addressing the prevalent issue of poor customer service in the property rental market. Emphasise your proactive approach to tenant engagement and your unwavering commitment to excellent customer service. Reassure property owners about potential tenant issues by showcasing how you actively manage and mitigate them, thereby instilling confidence in your agency's reliability and professionalism.
Implementing a tenant rewards programme can be an excellent way to foster positive relationships; which is exactly what Vaboo.co.uk has built for its letting agent client base through the development of a rewards platform that gives customers access to hundreds of deals and discounts at high-street brands to help with the rising cost of living.
But don't stop there - include your landlords in the rewards programme so that they too can enjoy these rewards and gain even more by renting their property with you. Offering a platform with hundreds of recognised high-street brands can really set you apart from the competition so that you can focus on offering great value instead of trying to compete on price, which often devolves into a race to the bottom where no-one wins.
4: Provide a one-stop shop
Landlords hand their properties over to letting agencies for one reason: the simplicity and ease of having someone else manage their investment.
For this reason, landlords see the most value in an agency that can provide a one-stop shop for all their property needs. Offering an end-to-end service will make your agency more attractive, especially to larger portfolio landlords.
With so many areas to consider, landlords will welcome an all-in-one solution like Goodlord, offering various services to tenants and landlords through its lettings platform, including rent protection, tenants insurance, utility switching, and more.
This can be a very powerful strategy to convince existing landlords who are not using an agency to see the value of a managed property solution under one umbrella.
5: Encourage referrals
Referrals are an extremely powerful and often underutilised source of new business. Looking at both your existing landlord base and your tenant base can be extremely powerful in terms of securing new instructions.
Research by Nelson states that people are four times more likely to buy when referred by someone they know and trust - in fact, one agency claims that in 90% of cases, a referral from a current customer is a "guaranteed instruction".
It is important to not only think of tenants as customers of your agency, but also as potential advocates. Think about asking those tenants with whom you have strong relationships with, or who give you high service ratings, to leave a review for you on Google - you might be surprised at how happy they may be to do so. Vaboo can help you harness the power of these reviews as illustrated in this testimonial video from The Accommodation Bureau.
6: Boost your community network
Being an influential figure within a community offers more than just networking opportunities; it serves as a platform to highlight the advantages of being a landlord to fellow business professionals and enhances your reputation.
Establishing yourself as a familiar and respected local figure can significantly benefit your agency. Participating in local events, supporting charities, and hosting fundraising nights are effective ways to connect with the community and distinguish yourself.
Collaborating with professional associations and industry bodies such as IFAs, Mortgage Brokers, Solicitors, and non-letting estate agents can also bolster the promotion of the private rental market sector. Facilitate introductions between these professionals and your clients, fostering mutually beneficial relationships that ultimately encourage new landlords to enter the property market.
7: Get social
Utilising social media to promote the benefits of buy-to-let property ownership and showcase your agency is vital for effective lead generation. Investing in expert professional support to develop a cohesive social media strategy is highly recommended to maximise your efforts.
Establishing a presence on platforms like YouTube or Facebook and leveraging them to conduct interviews with local business figures can significantly enhance engagement and credibility. Complementing these efforts with targeted social media advertisements can yield rewarding results.
Furthermore, harnessing the potential of LinkedIn and Facebook for Business is key. Building connections with relevant individuals such as property experts and investment groups can not only attract new landlords but also facilitate valuable networking opportunities. Ensure your profiles are meticulously maintained, informative, and reflect your agency's brand identity to leave a lasting impression on potential clients and partners.
8: Use technology
Utilising time and money-saving tools is essential to enhance your lead generation efforts. Implementing an online valuation tool on your website, promoted through various digital channels like Facebook, YouTube, or Google ads, can attract both existing landlords and potential investors seeking property value insights. Ensure that the data collected feeds into a robust CRM system, empowering you to nurture leads effectively.
Leveraging communication platforms to streamline interactions with tenants, landlords, and colleagues is crucial. Integrated systems centralise messages, simplifying tracking and enabling prompt responses, thus reducing the time spent on administrative tasks. For instance, Reapit.com offers a technology platform tailored to estate agencies, facilitating seamless communication and efficient operations.
Property maintenance is another critical aspect for estate agencies, often presenting logistical challenges. Adopting digital tools for maintenance requests and scheduling can greatly streamline processes and save time. Fixflo.com stands out as a leading provider of maintenance management software, empowering property managers to enhance efficiency, exceed customer expectations, and remain compliant with regulatory standards.
9: Use your intuition and initiative
Injecting creativity into your approach can truly make a difference in standing out as an estate or letting agent.
Consider innovative ideas to set your agency apart, especially if you're situated in close proximity to competitors. Hosting children's competitions, offering dog-friendly amenities with water bowls, or creating vibrant window displays with giveaways can capture attention and distinguish your agency from the crowd.
Harness the power of your CRM system to leverage your existing database of landlords. Continuously build and maintain a comprehensive list of contacts, including past clients and individuals you've interacted with. Keeping in touch with previous landlords can serve as a gentle reminder of your services, potentially leading to repeat business.
When successfully letting a property, seize the opportunity to extend your reach within the neighbourhood. Send leaflets to nearby homes announcing the successful let and indicating a demand for more properties in the area. Additionally, when contacting current landlords for tenant references, use the opportunity to inquire if they require assistance in finding new tenants, thereby fostering a mutually beneficial relationship.
There are many landlords not yet using agency services, as well as potential landlords who could become convinced of the benefits of renting a property through your agency: if you can successfully implement some of the above strategies or initiatives.
Vaboo can help you achieve your goal of growing your property portfolio, and help you retain your existing landlords with effective engagement and retention strategies.
We would love to show you a demo of our platform so that you can experience first-hand how our tailored solutions can empower your business for success.
Schedule a demo today and discover how you can unlock your agency’s potential with Vaboo. Book your demo now.