If you’re a landlord with a handful of properties, the chances are that you’ve been running your business on your own. From customer service and renewals to marketing and repairs, it’s easy to fall into the trap of becoming a one-man band and doing everything yourself.
However, as your company grows and priorities change, outsourcing some aspects of your business to the professionals makes sense. Below, we’ve put together the reasons why…
Though most of the tasks you do as a landlord are free, there’s a time cost associated with them. For example, if you’re earning £150,000 per year but you have to spend five hours a week unblocking toilets and fixing boilers, that’s a very inefficient way to manage a business.
By outsourcing a lot of the legwork, such as marketing, photography, lettings management, repairs, renewals, and customer service, you’ll be able to cut costs and make your business more efficient. The average lettings agency charges between just 10-20% of your monthly rental to manage your property, which is a small price to pay and gives you peace of mind.
With more free time on your hands, you’ll be able to identify new business opportunities such as buy-to-let properties and commercial properties, too. Many landlords get bogged down in the day-to-day running of a lettings business, and so by outsourcing the menial tasks that usually occupy all of their time, you’re able to focus on what you’re good at: making money!
Though many landlords focus their attentions on one particular part of the country when buying property, any good investor will tell you not to put all of your eggs in one basket.
Building a property portfolio that spans the length and breadth of the UK makes sense, as there are real opportunities in the buy-to-let market in developing areas, with Colchester, Manchester, and Stockport three of the highest-performing buy to let areas in 2019. If you outsource tasks to local experts, geography doesn’t have to stand in your way of expanding.
Another reason why landlords outsource services is to gain experience from seasoned professionals. Rather than trying to fix issues on your own or advertise a rental property in a challenging market, handing over the responsibility to people who know what they’re doing will allow you to streamline your business, deliver better returns, and save yourself stress.
Seek out local experts and work with other landlords and industry bodies to find the most appropriate businesses for your properties. Remember that the cheapest option isn’t always the best; it’s better to pay an extra £50 per property if it means receiving a better service.
Finally, consider the benefits of offering additional services to tenants without additional costs. With the Lettings Agent Fee Ban affecting landlords and agents up and down the country, many have had to get creative to recoup their losses and increase their margins.
Whether you offer tenants a weekly cleaning service, premium insurance, or an all-inclusive package, there are lots of ways to add value to your service without having to pay for them.
At Billing Better, for example, we work with landlords and lettings agents to help tenants pay all of their household bills on time. Agents can partner with Billing Better to unlock a new monthly revenue stream of £20 per property, per month, whilst helping their tenants manage their money and reduce the chances of them missing a payment on their gas or electricity.
In today’s competitive market, being able to differentiate is the key to securing tenants.
There you have it - just some of the reasons why you should consider outsourcing services as a landlord. What are your thoughts? Join in the conversation over on LinkedIn and check back soon for more tips and tricks on running a successful - and profitable - lettings agency.