A research report claims letting agents could be missing out on thousands of pounds of potential income each year by not providing full property management to landlords.
The report is from outsourced supplier ARPM which says that many agents in London typically offer let-only, but to their detriment - agents could increase their average annual income per tenancy by up to 80 per cent if they offered a full service.
The report says:
- the ban charging tenant fees will result in £400 less income on average per new let for London agents;
- longer tenancies mean there are fewer opportunities to earn income from let-only and tenant find services;
- let-only does not contribute to a business’s capital valuation;
- focussing on full property management can increase average annual income per tenancy by up to 63 per cent in the capital and business valuation by 600 per cent;
- there is an untapped market of almost one million landlords who only use letting agents for tenant find services or do not use agents at all;
- private renting is now the most prevalent form of tenure in London and 36 per cent of landlords who invest in London buy-to-let property live outside of the capital.
Lettings expert and founder of propertychecklists.co.uk, Kate Faulkner, writes in the report: “The property market is changing, and while many letting agents may conclude that it’s not a great time for their business, I believe the opposite is true. What this report highlights is the great opportunity available in property management which can improve financials for agents, protect landlords and raise property standards for tenants.
“Those who focus more on let-only could be missing out not only on the chance to grow their business but helping to deliver legally and safely let properties from landlords who lack the time and knowledge to do this themselves.”