Strategies for lettings agents to overcome challenges in 2021
As a result of the global pandemic of 2020, 2021 is a year likely to have its fair share of challenges for many businesses across a host of industries. This is particularly true of lettings agents. COVID-19 has created a lot of uncertainty in the jobs market and the housing market alike. But there are ways that lettings agents can overcome these challenges in the coming year and continue to thrive.
About our guest blogger:
Based in Worthing, Lucy studied Economics, Finance and Management before turning her focus towards the property market. She's a specialist short/long stay holiday rentals and has written for a number of major industry blogs.
Be prepared to change in the face of the ongoing pandemic
COVID-19 looks certain to remain a huge issue into 2021. But it is possible to have a strategy in place that can deal with a situation that might evolve rapidly. This year has proven that having a strategy that can quickly be adapted is key to success.
So, letting agents must factor this type of unpredictability into their plans. Make sure that, going forward, there is a plan B in place that can accommodate the more challenging aspects of the year that might arise.
Rent guarantees could be the answer
Landlords need stability and they need to be able to ensure that their payments will come in each month. After all, they still have their own legal obligations to adhere to, regardless of their tenants’ situations. But with government help drawing to a close, it’s a good idea to ensure that tenants are in a comfortable position financially. Lettings agents need to facilitate conversations between landlords and tenants.
There’s no one-size-fits-all approach when it comes to rental agreements but rent guarantee insurance could be the solution to this type of uncertainty. This type of insurance covers the monthly rental income if tenants don’t pay. Most policies cover at least 50% of rental income for peace of mind. It will not only help lettings businesses but also landlords, so it’s a good idea to educate landlords on the rental guarantee products available to them.
The need for flexibility
No-one knows how COVID-19 will shape the market or what the government will put in place, with regards to the furlough scheme and other funding options. Although overall most rents have so far been paid, tenants may find it harder to pay their rent on time as wider economic challenges continue.
So, letting agents and landlords need to be able to offer flexibility during these unprecedented times. Good tenants are bound to have their shortcomings occasionally, but it’s important to offer a grace period wherever possible.
Pay attention to the rules
The pandemic has meant a change in the rules in numerous ways. So, it’s more important than ever to stay up-to-date with the latest legislation to ensure that you’re following the correct ruling.
It’s also important to remember that not all of the changes in ruling will be COVID-19-related. For example, there are new rules affecting wood burning stoves. 2021 will mean focusing on the details at all times, as they can have a big impact on businesses.
Providing a great service has never been more important
In challenging market conditions, the letting agents that really thrive are the ones that prioritise their customer base. In 2021, businesses need to place a far greater emphasis on the service they are providing and really pay close attention to detail.
It’s these differences that will set successful letting agents apart from the rest of the industry. For example, having a strong local knowledge is vital – customers want to be sure that the agents they are working with truly understand the area. It’s also important to follow up on calls and be accessible to customers.
Final thoughts
2021 looks set to deliver challenges that we haven’t seen before. But the key to overcoming these challenges is to face them head on and to be prepared. Letting agents need to use the lead-up to 2021 reviewing their processes and strategies so that they can identify the areas that can be improved.
It’s only through this difficult analysis that businesses can really find the gaps that will set them apart from the competition. While there will no doubt be businesses that fail to make it through the tougher times, if you can survive, there will likely be a bigger share of the market to take advantage of.