In the first of my observations whilst out on the road visiting both existing and potential clients I would like to share some of the issues that letting agents are talking about. Because tenantSERVE cover a wide range of letting agent services, during my presentation many issues come to light that my clients see as being potentially damaging to their business, such as the income loss due to the governments new rules about fees coming into play. The first thing they ask me is “what can your company do to help mitigate the loss of income, have you any way that will help us earn more income”?
Now many of you might have heard Referencing companies saying that they have a scheme that will help with fees or pay money back as a commission but the truth is, at this stage, no one knows nor have tested the process with regards to the legality. The Government’s aim is to stop any fees being paid (when in my opinion a cap would have been far more useful and workable) so they are going to be looking for any loophole and close it rapidly when they find one…so what might be the answer?
My thoughts are this; Make your Lettings Business more profitable in all areas by selling more products and expand your business by offering landlords extra services.
An example of this is that on my travels I come across many Letting agents who do not offer a Rent and Legal Insurance as part of their package, often saying that in 20 years of business we have not had a tenant that requires evicting so why make it part of our package. Others say that the local solicitor deals with anything of that nature or they advise their client to search for a provider! The whole point of being in a service industry is to offer the client all that they require in a professional and cost effective manner and by not having the products that protect them or worse still, letting them explore other companies that do, you risk losing clients. By adding a nil excess, rent and legal protection policy to your monthly fee will, should anything happen like the tenant losing their employment, keep the landlord solvent as the rent is then paid and gain possession of their property back should it be required. If this policy is sold to a let only landlord then a commission is payable to the letting agent…extra income and added service!
To those Letting agents who have not had a Tenant that doesn’t pay the rent and has needed to be evicted I say fantastic and I hope you never do, BUT, any tenant can lose their job or have a change in circumstance that prevents them paying the rent and it’s going to be the landlord who suffers and whilst they do not get paid, then neither do you!
We offer a Nil Excess, Rent and Legal Protection policy that does what it says on the tin and I am happy to speak to you about this economical protection.
Look out for more on the road thoughts in my next Letting Agent Issues post.