How letting agents make more profit from serviced accommodation and delight their landlords
Most letting agents are not keen on renting properties for their landlords to serviced accommodation providers. Why this is the case is not entirely clear but I suspect it is more likely than not that they are simply unfamiliar with the serviced accommodation sector and do not realise the benefits to them.
Let me list some of the advantages of serviced accommodation to letting agents.
1. Properties are kept to hotel standard condition throughout the tenancy, unlike buy-to-lets. Landlords love to get their property back in tip-top condition at the end of the tenancy. Letting agents have less hassle as a result.
2. Serviced accommodation providers do all of the administration for the property and arrange the repairs and maintenance work too. This reduces the workload of the letting agents.
3. Tenancy periods tend to be for much longer periods so there are very few void periods if any. Again this saves the letting agents both time and money.
4. The relationship between the landlord and the letting agent is improved because the property is kept to a hotel standard condition, the landlord receives regular income and the letting agent earns more money, saves time and has less hassle.
5. Demand for the services of the letting agent increases because an extra tenants market has been created and it is a niche because not many letting agent competitors are active in this market.
6. Letting agents get more business because serviced accommodation providers often own buy-to-let properties too. This means that letting agents often manage their other properties as well.
7. Existing buy-to-let clients can be converted to serviced accommodation providers which gives the letting agents a more profitable, longer-term business.
8. If the lettings agency has an estate agency division they are likely to get more business because serviced accommodation providers also buy and sell properties. They also are involved in property development such as blocks of apartments, conversion from offices to apartments and residential conversions.
So the benefits to letting agents of serviced accommodation are many and varied. If you are a letting agent this is a great opportunity to grow your business in a modern and growing sector. If you are interested in knowing more do get in touch with us. You know it makes sense.
Tony Byrne
Managing Director
ShortstayMK