It’s no secret that prospecting for landlords presents a higher return on investment than repeat vendors. So understanding landlord behaviour is key to adapting your marketing strategy to suit.
Rightmove recently surveyed 1,292 landlords across the UK, asking them about their thoughts on the current market, as well as their concerns for the future of their properties. Using this data, we’ve come up with a series of tips on how you can alter your prospecting plan to reassure landlords that their preoccupations are at the forefront of your management plan - and persuade them that you’re the agency they should instruct.
31% of landlords don’t use a letting agent
Almost one-third of the landlords surveyed said they don’t rent out their property through a letting agent. That means there is a large percentage of properties on the market that agents could target and try to win for their portfolio. All you have to do is convince the landlord that your agency can look after their stock better than they can; something easier than trying to convince them to switch from a competitor agent, especially if they have a long-established relationship. With 13 years of historical tenanted property data, Spectre makes this method of targeting landlords super quick and easy, especially when you take into account which things landlords said would strongly encourage them to list with an agent:
- If they were able to get them higher rents
- If they could guarantee their rent
- If they could help them navigate changing regulations and legislation
- If they could deal with day-to-day tenant enquiries and manage maintenance issues
By highlighting how your agency can deliver these points in your prospecting letters, you can persuade landlords to let out their properties through your agency. Making Rent Guarantee insurance part of your pitch at valuations, and offering free portfolio and/or rent reviews to local landlords, are also great ways to get them on your side.
60% of properties are overdue a rent review
When asked how much their rent had changed over the last 12 months, a staggering 60% of landlords surveyed said it had stayed the same. By reaching out and highlighting the lack of proactivity in their current agent, you can instead highlight your services that put increasing yield and generating additional income as top priorities. Intelligent instruction generation tools like Spectre use data to help agents identify which properties are overdue for a rent review - meaning agents have a comprehensive list of who to reach out to first, without any additional work
Spending precious time reaching out to landlords with personalised prospecting campaigns means nothing if they don’t end up in the right hands. Using prospecting tools with a Land Registry integration allows agents to market to landlords by letting them purchase title deeds. This gives agents the landlord’s exact name and registered address - so your powerful message promising to prioritise higher yield always hits the mark.
27% of landlords are using multiple agents
Just over a quarter of those surveyed said they list their properties with more than one agency. This means you could potentially be sitting on a wealth of landlord information, already in your own system. Targeting your own clients to secure the rest of their portfolio is not just easier, but a cheaper way of finding new business, because you’ve already established a relationship with them beforehand. It’s just about reopening that conversation and asking them about their wider portfolio. Despite already being a client of yours, everyone wants an incentive to move, so think about your USPs and how can you persuade them to bring these properties over to you?
34% of landlords plan to grow their portfolio this year
In terms of plans for the future, 34% of landlords are actively looking to expand their portfolio of properties. That’s a large percentage of investors ready to join an agency at the drop of a hat. By building a relationship with high-value landlords and reaching out with good investment opportunities, you can act as the estate agent and then the letting agent.
60% of former landlords that sold their rental property did not use the same agent that managed the property
That means over half the landlords surveyed had agents that didn’t take advantage of their “at-risk” stock. By regularly checking in with the landlords on your roster, maintaining the relationship and offering helpful guidance, if and when they do come to sell, you can guarantee your sales team will be the one that earns the commission.
50% of landlords are planning changes to their portfolio this year
Half of those surveyed said they wanted to mix things up with their current rental properties in the upcoming year; something that might include switching to a new agent. By focusing your marketing strategy on being visible and offering free advice to landlords, you can build a pipeline of future opportunities for those that might be open to a change of agent. Knowing when to strike is also another essential skill for successfully canvassing landlords. Prospecting systems like Spectre help agents target landlords at weak points in the lettings journey, for example, when a live rental property reduces in price, when a property hasn’t had a recent rent increase, or when a tenancy renewal is approaching.
While many landlords do share a similar outlook on the future of their properties, it’s clear from the survey that not all landlords are the same and their priorities can vary. The most successful agents tailor their marketing approaches to the different types of landlords and offer separate service offerings to persuade them to join their agency. That’s why intelligent prospecting tools that specifically focus on Lettings, like Spectre, can help you use market data to adapt your marketing strategy - and expand your portfolio in no time.
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