Research suggests securing a landlord is worth £19,424 on average to your agency - roughly two-fold that of a repeat vendor. Yet despite this, agents still typically spend more time prospecting for new sales instructions rather than actively reaching out to landlords.
If you're new to the landlord prospecting game, we recommend focusing your efforts on portfolio landlords. By targeting landlords with more than one property, agents could expand their management portfolio in the quickest possible way and achieve a considerably higher return on investment than going after accidental landlords.
So if prospecting portfolio landlords is a no-brainer for increasing revenue, how exactly do you go about targeting them? Smart prospecting tools, like Spectre, can help agents instantly identify, target, and engage with portfolio landlords - taking them one step closer to winning the portfolio and significantly increasing their agency stock.
We’ve revealed 4 ways to use intelligent prospecting tools to target portfolio landlords and increase your stock this quarter…
1) Write to landlords directly
Spending time creating powerful landlord prospecting campaigns means nothing if they don’t end up in the right hands. And a common reason some agents focus more on winning sales instructions than prospecting landlords is that while they know the tenant’s address, they don’t always know the landlord’s. But we have a simple solution for this…
A prospecting system with a Land Registry integration allows you to purchase the title deeds of a rental property, giving you access to the landlord’s name and home address, so you can market to them directly. Knowing exactly where to send your marketing material will not only help you successfully target one landlord - but also their entire rental portfolio.
2) Uncover hidden opportunities in your own database
As well as making the most of a software system that’s integrated with the Land Registry, agents might be surprised to know that they’re most likely sitting on a wealth of landlord data. Consulting this data will not only show agents which of their existing landlords are letting other rental properties through competing agents, but also helps them cut down on marketing costs by using information they already have sitting under their belt.
3) Target landlords at the most opportune times
Knowing when to strike is another skill that’s essential for successfully canvassing portfolio landlords… and luckily, Spectre helps agents target landlords at weak points in the lettings journey. Reaching out when a live rental property reduces in price or hasn’t had a recent rent increase is a great opportunity to show how proactive your agency could be in helping landlords achieve the best rental price and increase their yield. Also, making contact when a tenancy renewal is approaching and offering your services should they need new tenants, is another great way to maximise your opportunity to expand your lettings portfolio.
While establishing a relationship with these landlords is a sure-fire way to bring them to your agency, our data shows that maintaining communication over a longer term and building a relationship with them is more effective than sending just one letter. Contacting portfolio landlords to discuss any investment plans for the future, as well as when they list a new rental property, during the tenancy, and also at the end of the tenancy, means your agency will have a greater chance of winning these instructions and generating additional revenue.
4) Make them an offer they can’t refuse
After successfully locating the landlord’s home address, and understanding exactly when to reach out, the final step in securing a portfolio landlord is getting them hooked - something you can do by making them an offer they can’t refuse.
By including a special offer within your letter content, landlords will be far more likely to consider a change of agents. For example, we’ve seen other agents offering a free tenant-find service if they sign up for a 12-month management plan, or free management for the first 3 months. And if you tie in the offer with the reason they’ve had an unsatisfactory experience with their previous agency, you can significantly increase your chances of the landlord making the switch.
Prospecting for landlords is much more lucrative in the long run, especially portfolio landlords that come with the opportunity to win multiple rental properties. By following the above tips and using smart prospecting tools like Spectre that identify portfolio landlords and investment properties, agents can quickly grow their lettings portfolio and see their revenue skyrocket this quarter.
