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Does risk free letting attract landlords

Most letting agents will do just about anything to persuade potential landlords that buying their services is risk free. We all know the biggest risk is the tenant not paying the rent and trashing the place.

Agents even use rent guaranteed insurance to attract landlords, so the landlord doesn't miss out on their rent - which is risk free. In fact, there is a well known and well thought of chain of letting/estate agents who use that as their main USP.

However, is that the best way to get more landlords In my humble opinion, I think not. Let me tell you why. When was the last time a landlord said to another landlord, "hey you want to go and use that agent, they guarantee my rent.

Now most landlords don't shout about that they are even landlords, let alone compare service levels and extras. The British keep their finances private, just like people don't go around telling their friends and family what they earn, most landlords that own a BTL property don't go broadcasting to the world that they have a portfolio of 8 properties. It is not something most landlords shout about. Think about it Mr (or Mrs) letting agent, we all know landlords do talk to each other, but when was the last time a landlord came into your office and said, "You charge me 10% whilst you charge my mate (who uses you) at 6%", they don't, do they (well, it never happened in my 16 years of being in agency)

Rent guarantee insurance free EPC's isn't going to make a landlord go wow, Rent guarantee insurance or free EPC's aren't going to make a landlord sing from the roof tops that you, Mr (or Mrs) letting Agent, are the best thing since sliced bread. You need something that makes them go wow that guy/girl is good, they go the extra mile.

So, let's think for a second...

Word of mouth is directly proportional to risk. If I take a risk and it works out, I tell everyone. If someone tasks a risk on behalf a landlord, that's even better. If there was no risk, it's not interesting, so not remarkable and that's the end of that. Early adopters of new ideas are proud of their stance. It makes us feel good to share stories. Be proud of your risk takers and they'll return the favour - i.e. recommend you to other landlords.

So what could you do that is different Well there are lots of things you could do. One simple thing that comes to mind is this ... Why not visit the current home of the tenant that wants one your properties and report back to the landlord, be honest with the landlord, say its reasonable but not brilliant, so would recommend a slightly higher deposit - they will love you for that.

Create a service that is riskier to adopt or create a marketing campaign that is riskier and if you can get over the hill, you'll be rewarded with buzz, recommendations and business.

* Christopher Watkin is the writer of the how to get more landlords to use your lettings agency blog' and helps letting agents get more landlords and rental properties for their lettings agency

Comments

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    Thanks for the read. Yes renting and letting is very risky and depends on the tenant. But hopefully the agent can screen them best they can so there is less risk and it's stress-free for everyone.

    • 20 July 2014 03:48 AM
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    Christopher you are talking about what the agency I work for refer to as "applicant home inspections". This has been part of our application process for years. So I agree with your advice. However, I will disagree with your suggestion "say its reasonable but not brilliant, so would recommend a higher deposit". If we make the former part of the statement then the latter part is "so we recommend they are turned down". Never mind a higher deposit. Yes it will cover cleaning etc. after vacation but untidy tenants do no favours in helping the property let during their notice period when they are still occupying. The worst case scenario is that the property will not receive a new application until the tenants vacate and the property is cleaned. This means a void for the Landlord.

    • 18 February 2014 15:08 PM
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