Lettings News

How Letting Agents Can Help Landlords Reduce Void Costs

Andrew Truglia - June 19, 2019

Tenant Shop says letting agents can reduce void costs to landlords if they focus on having the right processes in place.

The leading utility management service says that agents can retain landlord clients by reducing void periods, which is particularly important right now in a time when savvy landlords are shopping around more than ever to find better value for money management fees.

Kent Reliance estimates in their latest study that the typical landlord loses £528 per year due to void periods. They also note that this figure is on the rise due to an increase in the average rent and an increase in the gap between tenancies.

Glenn Seddington at Tenant Shop goes on to say: “Landlords will be looking to minimise lengthy void periods at all costs and letting agents have an important role to play in saving their clients money, ensuring a smooth changeover between tenancies.

“With the tenant fees ban now in force, keeping void costs will be an even higher priority for landlords, especially those who are paying higher management fees as a result of the new legislation.”

How Can Letting Agents Help?

Managing changeovers more efficiently and proactively matching tenants to soon to be vacant properties are just two of the ways that agents can minimise void periods.

“By having the right software and processes in place, agents can help to prevent void periods becoming a serious and costly issue for their landlords,” Seddington continues.

“Tying up loose ends at the end of a tenancy is crucial in saving time and making sure everything is ready for a new tenancy to commence. This includes notifying local councils and utility companies about tenancy changeovers and dealing with stray bills.”

“If agents can automate these processes using the best PropTech solutions, they can save themselves time and keep their clients happy which is a win-win situation for all parties,” he says.

Retaining landlords is crucial to agents’ survival

In a world of banned fees, higher government regulation and tougher competition than ever before, agents must work harder to retain landlords by keeping them happy and demonstrating value for money.

“Agents need to focus on showing landlords everything that is included in their service and why they are more effective than local competitors,” says Seddington.

“If your service is slick and efficient this is only going to impress landlords, increase your chances of long-term retention and provide your staff with more time to focus on growing your business further.”

“Working out how you can reduce the impact of pain points landlords face on a regular basis, such as void periods, will only help in showing your clients why they need the services of a professional letting agency now more than ever,” he adds.

“Despite a challenging market, there are still plenty of opportunities for letting agents to be successful. Utilising the best PropTech services and products can be hugely beneficial in achieving long-term stability.”