Finding landlords to manage properties for, one at a time

2 days ago
3 min read

Updated: 2 days ago

Introduction

A management book is the most valuable thing a letting agency owns. It produces income every month regardless of whether the sales market is moving, it compounds as landlords buy more property, and it is worth a multiple if the business is ever sold. Nothing else in an agency has that property.

Building it is slow because landlords do not switch agents often and self-managing landlords believe they are saving money. Both of those change under specific circumstances, and being present when they do is most of the work.

The most productive source is the landlord who is currently managing their own property and finding it harder than expected. There are more of them than most agencies assume.

Finding landlords to manage properties for means catching the moment it gets difficult

Self-managing landlords convert when something goes wrong.

Legislation and compliance changes. Every change to certification, deposits, licensing or standards creates landlords who no longer want the responsibility. Rules differ by jurisdiction, so know yours. Write to local landlords whenever something changes.

A difficult tenant or an arrears problem. A landlord dealing with a serious issue alone is the most receptive audience there is. Offer help rather than a sales pitch.

A change in the landlord's own life. Moving away, retiring, a new job, ill health. Distance is what turns self-management into a burden. Watch for landlords whose correspondence address moves.

Use the routes that reach landlords directly

Landlords are reachable in ways tenants are not.

Accountants and financial advisers. They see property income on tax returns and are asked for recommendations by clients buying rentals. Two accountants can supply a steady flow.

Mortgage brokers. Anybody arranging a buy-to-let mortgage is speaking to a landlord at exactly the right moment. Ask brokers to mention you at application stage.

Your own sales side. A buyer purchasing an investment property is a management client. Most agencies with both departments do this badly. Introduce the lettings side before completion.

Convert the self-managing landlord

The objection is always cost, and it is answerable.

Cost it honestly against their time. Void periods, arrears, compliance failures and the hours spent are real costs that fees are compared against unfairly. Put the arithmetic in writing.

Lead on compliance risk. The financial consequence of getting certification or deposit protection wrong is far larger than a year of management fees. Cite the actual penalties in your jurisdiction.

Offer a lighter tier first. Rent collection rather than full management gets a self-managing landlord to try you. It also proves you are worth the fee. Most upgrade later. Price it so the step up is easy.

Keep and grow the landlords you have

One landlord frequently becomes several properties.

Ask about the rest of the portfolio. A landlord with three properties may have given you one. Nobody asks. Ask at the first renewal.

Report properly and unprompted. Landlords leave agents because they hear nothing. A short monthly statement and a note when anything happens prevents most losses. Send it on the same date each month.

Handle the difficult things well. Arrears, repairs, notice. How you deal with a problem is what earns the second property. Tell them what you did, not just what happened.

Conclusion

Target the landlords currently managing their own properties and catch them at the moment it becomes difficult: a compliance change, a tenant problem, or a move away that turns self-management into a burden.

Reach them through accountants and mortgage brokers who meet landlords at exactly the right point, and through your own sales department when somebody buys an investment property. Convert them by costing your fee honestly against voids, arrears and their own hours, leading on compliance risk rather than convenience, and offering rent collection as a lighter first step. Then grow the book by asking about the rest of the portfolio, reporting monthly without being chased, and handling the difficult moments well.