Our recent roundtable on the government’s proposed ban on tenant fees generated 10 top tips for growing your business.
We’re exploring each tip in our weekly email alerts.
This week, we’re examining how to create new revenue streams.
You may well have been offering letting-only services since opening your doors, but that doesn’t mean you can’t refocus your efforts on a more lucrative revenue stream.
Many of our roundtable guests in March revealed plans to refocus their efforts on property management services in a bid to plug any shortfall created if the government’s proposed tenant fee ban is implemented.
If you’re already offering property management services, consider your proposition. Is it aligned with the current demands of your landlords, or does it need refreshing?
Like a couple of our guests, you might like to consider a pick and mix approach, whereby you offer landlords a comprehensive choice of services that they can bundle in any way, shape or form that best suits their needs and budget.
Refocusing your efforts may involve expanding into new business areas.
Build to rent is a case in point. Build to rent involves the building of property specifically for rent, with estate agents typically working with developers to secure tenancies and manage properties.
But one roundtable guest is going as far as to manage the entire process, from purchasing land and managing the build to managing the rental services for landlords on completion.
Mergers and acquisitions (M&A) could save you the effort of developing the required skill sets for either property management services or build to rent.
But ensure that you undertake the necessary due diligence ahead of any M&A activity, to help identify a business portfolio that best suits the needs of your business, particularly your long-term business objectives to the last press release].
You could instead, or perhaps as well as, reposition yourself in the market.
The high end of the market may well be a thing of the past, at least for now, but that doesn’t mean that you can’t refocus on a higher priced property bracket to help boost your fee income.
Or perhaps expanding into a lower priced bracket may be a more compelling proposition with which to help boost your stock levels, and consequently income.
This is a tactic that a number of traditionally high-end agents are using in response to current market conditions.
- Consider third party agreements
The most obvious way of creating new revenue streams is work with third parties to earn kickbacks for data sharing.
Broadband, phone and utility companies are the most obvious partners with which to work and can offer lucrative payments in return for your data.
Don’t forget to secure permission from the individuals whose information you’re planning to sell on, in line with Data Protection law.
Eurolink estimates that its 225 client firms could generate in excess of £7.9m by selling on their property data, so what are you waiting for?
- Create your own products
Consider new products and services that you could create to generate additional revenue for your business.
These may include rent guarantee schemes and training courses, which you can white label for industry peers.
Next time, we’ll be focusing on How to upskill.
Click here to read last week’s top tip on How to review your business objectives .