Many people assume that property sales and property lettings are very similar. In fact, they are very different and require a different approach and different skills. For this reason, we believe a lettings business is generally more successful when separated entirely from sales.
With an estimated 4 potential tenants for every rental property and the number of tenants predicted to rise significantly in the next 10 years, the main challenge for agents is not finding suitable tenants, but finding quality landlords who will enable the agent to meet demand and grow a successful business.
Approximately 80% of landlords in the UK are individuals (or spouses) who own 5 or fewer properties. Therefore the ratio of private landlords to private rented properties is very low and there are a large number of landlords in the UK. A private landlord will usually view property for let in a much more dispassionate way than a seller will view the sale of a family home. Property for rent is predominantly viewed as an asset and an investment, which needs to be used to generate an income and at the same time, be protected. Therefore, successful lettings agents understand a landlord’s need for a business relationship which is based on diligence, reliability and a methodical approach to the ongoing administration, particularly when dealing with various legal and regulatory documentation.
The most successful letting agents do not simply wait for existing landlords to contact them. The most successful letting agents actively develop their networks within the property and investment communities in order to encourage and assist investors to become landlords, and generate new business.
It is unfortunate that many landlords struggle to find local letting agents with the necessary skills and infrastructure to deliver both the quality and type of service they demand. However, this is precisely why Macmillans believes that a great opportunity exists for committed individuals, backed by an industry-leading business model, to build a trusted and financially rewarding brand.