Are you missing a trick when it comes to Buy-to-Let Buyers?
In the Land & New Homes Network, many of us are well aware of the lack of communication between the sales and lettings departments of many estate agency firms. It’s frustrating, and when it comes to capitalising on new developments, it can be commercially damaging.
For example, last year, we mystery-shopped 42 different agents to register as a Buy To Let investor and worryingly, just two offered the services of their lettings departments. Why is this an issue? Because BTL investors can deliver multiple income streams for estate agents – especially on new homes sites. And even if the developer is selling directly, worthwhile lettings opportunities can still be achieved.
In many cases, new homes developers need to be doing business with BTL investors (and vice versa), and the Land & New Homes Network has been created to promote these relationships.
Agents ought to be aware that selling a property to a landlord who then uses their lettings department, is likely to deliver fees equivalent to two or three times more than the initial sales fee.
Also bear in mind that a high proportion of most developers’ stock is apartments (or similarly sized units), which will have a wide appeal to Buy to Let investors. And when it comes to buying power, an investor is far more likely than a first time buyer to purchase off-plan and even exchange on the same day as seen with many schemes recently.
It follows that agents with a solid investor database can significantly enhance their appeal to the developer when it comes to selling sites for them. And even if the developer insists on selling its properties directly, an agent’s lettings department can still grab a piece of the action. How? By producing good quality lettings information that will help the developer convert sales opportunities.
For example, many developers will be happy to hand out a branded Yield Card from the local lettings expert. This professionally-produced A5 document will effectively endorse their lettings claims and figures, while reinforcing your role as the go-to lettings professionals.
One canny agent in our network did this recently and, having been invited to the developer’s launch event, managed to sign up all 54 investor sales to a full lettings management service – the equivalent of over £400,000 of turnover in a five year period! Now that’s one trick that definitely wasn’t missed.