THE LETTING PARTNERSHIP
Dispelling the myths of client accounting outsourcing.
01 March 2022 7367 Views
The rental market shows no signs of slowing with ongoing high demand, fuelled in part by the pandemic, creating a buoyant market throughout the UK.
2022 is a great time to expand your business, but owners are often time limited and under pressure to juggle all the elements which make the business successful, before they even think about growing.
Fortunately, there is a solution. Business owners could consider outsourcing to meet demand and free up vital time to work on other areas of the business.
When it comes to deciding whether outsourcing is for you, there are several myths which can concern business owners considering taking the next step.
Outsourcing has experienced rapid growth in recent years and since April 2019, The Letting Partnership has observed a sharp rise in demand for outsourcing client accounting services, as the pandemic focussed attention on the business and owners redeployed their teams to cope with these unprecedented circumstances.
A recent study by Deloitte highlighted the top reasons businesses decide to outsource which include: to reduce costs (59 per cent); to focus on core business (57 per cent); to solve capacity issues (47 per cent).
Here are some commonly held myths around outsourcing, addressed:
1.) Myth: It will cost too much
Providers of outsourced services to the lettings industry should offer significant economies of scale and real expertise.
Business owners should consider: how much is their time worth? How could this time be better spent?
Many agents overestimate the cost of outsourcing. Instead, they take on the task themselves or delegate it to an administrator who may lack the skills or training to perform this efficiently.
Allocating this time to focus on other areas of the business can earn significantly more money than the cost of outsourcing in the first place.
2.) Myth: I can’t trust an external supplier to succeed at this job
When letting agents doubt an external supplier can perform this job well, consider this: outsourcers are specialists and carry out these tasks, day in, day out.
Seek reassurance. Look for a provider which boasts professional indemnity insurance that is robust enough for the business they undertake – an outsourcing company should be happy to be completely transparent about this. Ensure too, that outsourcers have specialist cover suited to their business.
For further peace of mind, find an outsourced provider which offers genuine transparency, and your information is always available to you. At The Letting Partnership our agents have 24-hour access to their Client Account.
Be wary of any Client Accounting Service Providers who refuse to set up individual client accounts for you. Pooled client accounts or sweeping client money to an account beyond your oversight should ring alarm bells.
3.) Myth: I will lose control
As the business owner, you are the decision-maker, and this won’t change. Companies who provide outsourced services will be able to deliver a seamless transition and a consistence level of service.
4.) Myth: The outsourcer won’t be able to work with my systems
It’s true there can be issues with legacy systems and integrating software, but if in doubt all you need to do is ask. When it comes to client accounting, letting agents should expect an outsourcing partner to be able to work with major software providers. There should not be any need to buy a new piece of software to work with your provider.
Agents who adapt to utilise their team’s strengths stand the best chance of not only surviving but thriving in the current market conditions.
If you would like to know more about The Lettings Partnership, please get in touch at firstname.lastname@example.org or call 01903 477 900.
Chris Mason is the Operations Director for The Letting Partnership.
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