If you’re an Estate Agent, Letting Agent or Property professional, continue reading as we explore what currently slows down and eats up time in your business; the impact of this and the best ways to overcome these issues, enabling you to drive your business forward.
Time spent on non-commission relevant activities creates a large vacuum of inefficiency. Start by defining and separating service/operational tasks and commission focused tasks.
Systemising or outsourcing non-core activities such as [inventories, check in/outs, deposit estimations and referencing] can immediately improve efficiency, leaving you and your team to focus on commission driving activities.
Spending time on letting valuations, following up leads, nurturing/engaging landlords and tenants, directly impacts commissions, improves service quality and assists in client retention.
Where is time spent when letting a property?
Let's take a look at the typical time and activities involved in letting a property. By utilising this method we can work out the return based upon the time spent on managing a property. Doing this analysis will enable the agent to look at areas to streamline or outsource.
We spoke to a couple of our clients to understand where time is spent on letting a property. This illustration is only a guide and will differ between agents, agent type and property as well as other activities.
1 member of staff working full time could manage around 40 to 50 properties a year doing all the above. But if the staff member only had to concentrate on the core activities, hypothetically they could then manage 80 to 100 properties per year.
The benefits of doing this are increased portfolio size, better commissions, better servicing by using specialised suppliers, higher staff motivation
The lettings industry is competitive and changing rapidly. As tighter regulation and pressure catches up with agents that are not prepared, we see service quality drop off, leading to client loss and the business suffering.
By refocusing on core vs non-core activities as illustrated above you can expect better profitability, client retention and growth, staff morale and the ability to deliver a superior overall service that beats the competition.
- Analyse your current lettings business based upon the time spent model above, speak to your key staff.
- Identify areas that are operational, or service oriented that do not impact the bottom line.
- Can these areas be streamlined through outsourcing to suppliers, or improving the current process?
- How much time would be saved if you did this that can be directly reallocated to profit generating and retention activities?
- Translate this into actual cost of outsourcing and reengineering.
- Translate reallocated time into revenue generated and see if there is an upside to profit, servicing quality and competitive edge.
Focus on the basics, what is core what is not core. Take a top down view, analyse, identify and execute. `it’s your business it’s your opportunity and your profit!
Contact us now on +44 7932 760 563, we can manage your whole inventory, check in, check out and inspection processes as well as enabling your deposit dispute/renegotiation process to be simpler and easier.
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