According to the Assist Inventories Lettings Sector Report 2022 (to be published in full on the 27th Jan 2022):

  • 78% of letting agents believe that landlords will become more selective when choosing an agent in 2022
  • Over 70% of letting agents think that the abolition of section 21 will cause a landlord exodus

The report, which canvasses over 6,000 letting agents, is conclusive in this respect; The consensus of the sector is that landlords have the power, and agents are going to offer value to compete, while making a great business case for their clients to stay in the game.

State of the Sector 2022

The UK property rental sector is changing, and changing fast. This comes as a result of global societal shifts in behaviour as well as home grown legislative evolution, to name the two largest catalysts at play right now.

What does this mean?

“Combined with the necessity to attract and maintain work, in the post Covid/digital age, letting agents and agencies, in line with their latest statutory obligations, will have to make operational changes too, in order to deliver their service.”

– Charlie Saunders, Assist Inventories

Did you know? 52% of agents believe that new legislation will affect how they do business.

 

6 things all letting agents must have in 2022

As we understand, things to be addressed span both brand value and operational standards.

Therefore, it is vital for letting agents who want to not only survive but thrive in the new world to have all of the following.

  1. Remote facilities

If the 2020 pandemic months taught us anything, it was that those who are online are able to continue working. So, letting agents who want to go the distance are ‘futureproofing’ their businesses by ensuring that:

  • Property listing are written with real care, and have videos and floorplans as well as pictures to support prospective tenants in making decisions remotely (and more quickly)
    • This is a big plus for landlords who don’t want their turnover to grind to a halt in the case of another block on physical interaction.
  • They have the facility to do virtual viewings
  • Their teams can conduct video conferencing with landlords and carry out virtual viewings, crucially by a standard which maintains engagement.
  1. Reliable and reputable suppliers

70% of agents answering the Assist Inventories annual survey said that they will be vetting suppliers to ensure best practice and quality.

In a nutshell, you should be holding your suppliers by the same standards you hold yourself (this list!).

Check their online presentation, reviews, facilities, understanding of your business, and ability to maintain/and or adapt service in times of change and for the future.

Remember, your suppliers are an extension of your business.

  1. Knowledge

Almost half of all agents say that landlords have been asking for their help with energy efficiency targets, and it doesn’t stop there.

New and existing clients will not only judge you on your style but also your substance, namely your ability to help them when they need it.

Consider your own and your agency’s ‘skill stack’. You can let properties, but what else can you do to support your landlords? Simply, you must be competent in all landlord-related legislation.

  1. In demand products

Like virtual presence, you can also continue to be relevant and required by offering the letting products landlords want namely:

  • Short term tenancies – 50% of agents believe that landlords will not offer long term tenancies in line with the abolition of section 21
  • Lifetime deposits – 48% of agents are in fact not aware that these exist.
  1. Compliant properties

45% of agent believe the government should place requirements on agents to only advertise compliant properties.

If legislation such as this is passed and your properties are not compliant, you will find yourself in a tough spot, so focus on compliant properties now to raise the standard within the sector and protect yourself.

  1. Online presence (and credibility!)

This is a bonus point on our list, and we’re including it because we live and breathe this…

Word of mouth is and will likely always be the most effective way to win new business. That being said, today, if one professional landlord happens to mention you to another, the likelihood is the first thing they will do is look you up online. And no glowing review is going to overcome the researching landlord’s own first opinion of you.

Likewise, a new to the sector landlord or seasoned professional looking for a new agent will also use the web.

For both of these reasons, the most successful agents have a website and online presence (mentions on websites with sector authority, badges of recognition, and credible reviews) which accurately represent their brand value.

Similarly, these agents will be focussed on ensuring landlords find them before others.

Invest in your digital presence.

Agent Predictions for 2022

If you would like to benchmark yourself further against your peers, then here are their predictions for the year ahead.

  • 89% think the cost of renting will increase
  • 82% think lack of stock is their biggest concern
  • 74% are aiming to improve customer experience
  • 70% will be vetting suppliers to ensure best practice and quality
  • 67% will be finding new ways to generate revenue
  • 63% think covid will continue to impact the market
  • 60% are optimistic about the future of the market
  • 52% Think new legislation will affect their business
  • 41% say that ROI for landlords is their biggest concern in 2022
  • 70% think tenants will, or there is a chance they will, move to rural areas

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