How To Recoup Losses From The Ban On Admin Fees
Following the 2012 ban on admin fees for tenants renting in Scotland, Britain’s government have announced that England and Wales will now follow suit with Chancellor Philip Hammond saying in his Autumn statement that shifting the cost to landlords would save hundreds of pounds for up to 4.3 million households.
Now in 2017, with the legislation soon being put into action, letting agencies are beginning to wonder how to recoup the fees lost in banning the admin charge.
The general opinion is that the costs will now be transferred to landlords, effectively generating even more competition between letting agents by allowing landlords to shop for the cheapest service they can find. However, there is a way that agents can recover their losses outside of this scenario.
The key is to introduce value-added services that will aid the tenant and landlord mutually. Particularly in London and surrounding boroughs, specialised services (some chargeable and some not) will become the deciding factor in agency use.
Tenant and Landlord Points of Care – Customer Loyalty
Many estate agencies across the country have started to introduce customer service targets for their staff. In short, the initiatives equate to the age-old adage of ‘going the extra mile’.
When agents provide their landlords and tenants with perks, such as guides to the local area or an extensive list of trusted maintenance professionals, it provides a level of care that promotes customer loyalty. What’s important to note here is that these targets and practices actually equate to very small operational changes on the ground. So, even though you are not charging for this service, you are ultimately guaranteeing customer loyalty and making sure that the agency’s income remains consistent for longer periods of time.
Outsourcing Services to Ensure Agency Efficiency
By hiring a specialised inventory services company, for example, an agent or landlord can save time and money in both the short and long term. In the initial stages of letting any property, an agent has to concentrate on the immediate tasks at hand i.e. guarantor/credit checks, deposit contracts, insurance and tenancy agreements.
It is not cost effective for an agent to lose half a day or more doing a comprehensive inventory check of a property, let alone all of the properties in their care. Later down the line, if an improper inventory report results in a dispute between the landlord and tenant, a professional inventory check can be used to avoid the agency incurring potential costs or fines.
Property Inventory Services
If you are considering outsourcing some of your administration work to maximise the sales output of in house staff then talk to us. We are a property inventory company in London who understand the property market.
Our professional and experienced property inventory clerks know what you need therefore can provide you with a sure and thorough service.
Contact us today for a quote.