What does your Landlord demographic look like?
Customer service and customer care - two phrases that are extremely important to the business owner. These two fundamental elements that define a business and if you lose sight of the importance of the customer, they will go elsewhere.
Competition in any industry is tough and, in an age, when the customer can jump straight on to social media and declare their disappointment, sometimes unwarranted, it’s easy for customers to go elsewhere.
So why it is important to focus on the customer, not just in terms of what the customer needs, but their journey and expectations? Do we know enough about what that means?
It’s crucial to know your “customer demographic”, something organisations - private and public spend vast sums of money researching. They profile what this person or group of people “look like”. Not in the physical sense, more so in terms of behaviours. What kind of job do they have, do they drink, do they like a particular kind of coffee or biscuit? Cookies, not the edible kind, track consumer behaviours so that businesses can “target” the consumer based on their internet searches.
However, whilst Prop Tech is sophisticated, it doesn’t quite “profile” in that way. It matches people to property types, but it doesn’t match landlords/investors to letting agents. The landlord comes in different guises and therefore, the square peg definitely doesn’t fit in the round hole, and as such, different landlords have different expectations.
Who are the Landlords?
The average person things that all landlords own huge portfolios and are cash rich. Wrong! Most landlords own between one and 3 properties. They are people who may have inherited or invested in buy-to-let for their future. Uncertain or unwilling to manage the property themselves, this type of landlord needs support and guidance on all matters relating to lettings and property management.
The “Serial Investor” has a vision, disposable income and a good accountant / financial advisor. They know and understand the benefits of investment in property and take their business seriously as they watch their portfolio grow, they need an agent who understands the cycle of the investment and who has their eye well and truly on the market. The landlord wants to keep up to date on changes that could affect their investment portfolio, such as legislation or and trends in the property market. They may require tenant find or fully managed, but they want the agent to keep them in the loop.
The small Corporate Landlord is a novelty. As a result of tax changes, landlords set up limited companies so that their investment became more tax efficient. The landlord’s needs are the same as the portfolio landlord, but the vetting process is very different. In this case it’s important to cross reference Companies House data with the Land Registry searches to ensure ownership and director details match.
The larger corporate landlord can be seen up and down our high streets. Often, they will own the commercial premises and the residential that sits above. A complex legal process, however, a large number of corporates are the landlords for most of the property in our high streets.
The Church is one of the largest landowners in the country. Along with the Queen, much of this land does not appear on the Land Registry, however you can assume that most property situated in the vicinity of a church is owned by the Diocese.
Charities established over many years with sound financial advice will have invested in property. The trustees think carefully how to maximise the investment that can then bring income back into charitable causes. Often the trustees are not specialised in the management of property, and they are therefore heavily reliant on the knowledge and expertise of an exceptional agent.
As the housing market continues to change and evolve, investors still look at the best way to maintain and build on their investment. Letting agent are an ideal partner in this process. Not only does the letting agent understand the Cycle of the Investment, but they are also specialists in ensuring that the landlords’ objectives can be met. So may letting agents will have case studies where they have assisted with the growth of portfolios, focusing heavily on highlighting opportunities that would suit their landlords. And what’s more, the letting agent has the expertise and knowledge to ensure that the property is well-managed, the issues that arise are dealt with and the landlord remains totally compliant. In short, why would a landlord run their business without the letting agent by their side?