Letting Agents…”How you can treble your turnover part 2/3″
So last week we looked at the first steps in how you can treble your turnover, and we covered massively increasing your database and leads into the business by creating lower level data capture resources and mechanisms. If you missed it, you can find the article HERE.
So this time I want to look at the second part of our three part series on how to treble your turnover where I’ll be focusing on how you can increase your pounds per deal…
Increasing your pounds per deal
Now I hear you saying “we can’t charge any more, the competition is undercutting us, we are at maximum fees already” and I get you, I feel your pain. Numpties, with no knowledge in the market are coming in and offering (allegedly) the same service as you for a fraction of the price… But hey relax! I’m will NOT mention increasing fees, so let’s move on…
If you want to increase your pounds per deal, then my advice is to offer MORE service, do more and be more… Over the years in letting agency, you will have developed HUGE experience in your market place and this means that you MUST be able to do more than just let houses? I’m sure you can.
Again the problem here is all agents offer the SAME thing: Lettings and management. Some of them offer estate agency but that’s about it…
But with your wealth of knowledge in the local area, property stock and the industry, I reckon there is loads you could actually offer!
When attending valuations, I work on a 1 in 3 ratio, out of 3 properties I see, 1 will need some work, either to bring it to compliance level or to help it achieve more rent or get a better type of tenant. In fact if you ask the landlord if they want the highest rent and the best tenant, I bet they will tell you YES! So why not REALLY show them how?
A makeover, compliance work, furniture pack possibly and you should be able to seriously increase the rental yield of the tired property, attract a better tenant and probably double or even quadruple your fee income in the process too. Make sure you are clear in what you are offering and your fees for overseeing the work, inform them of what their outcome is likely to be and make sure you use the best contractors for the job (as getting this bit wrong can be painful), and the results will be spectacular.
Eventually the other agents in the town will be wondering how you get so much more rent for your properties than all the competitors and then this in itself will attract landlords to you. Plus you will have some awesome before and after pictures for your future blogs, website and social media, plus glowing landlord testimonials, some great appreciative tenants and very loyal clients , so why not?
But refurbishments are not the only thing, what about HMO conversions or management?
This is a very lucrative area, plus LHA tenancy management, short term lets, problem solving for stuck landlords with difficult tenants, mentoring on what to buy and where, acquisitions service or makeover advice, to name just a few.
The list is endless, but don’t forget the smaller lower level fees too, write a book, record an advisory video series or audio, list only service etc. Add lower and higher level services and you will see your income rocket!
Higher income for your agency will really take the pressure of the key fees charged and published and the volume of business required. We have had branches that have really focused on increasing their pounds per deal and as a result had a 500% increase on turnover in just a few months without increasing the volume of let’s at all.
In my next article I will be covering how to treble your turnover by acquiring other property management stock, so keep your eyes peeled.