Are you making recurring income?

Recurring income is the holy grail for businesses. Money that keeps coming in every month with relatively little effort, compared to having to make new sales every month to secure the income. The greater the percentage of your income you get from recurring fully managed services, the more valuable your letting agency will be.

While let-only income can be a valuable source of income for your letting agency, you only receive it when a tenant leaves and a new tenant is needed. There is no guarantee that previous landlords who have used your let-only service will return and use it again.

The letting market is competitive, and a let-only landlord has no particular reason to come back to you rather than to whoever is cheapest that month. That was true when the online agencies were undercutting everyone on fee, and it is still true now most of them have gone, because the pressure did not leave with them. A landlord who only ever buys a tenant find from you is a landlord you have to win again every time.

The greater the percentage of your income you get from recurring fully managed services, the more valuable your letting agency will be.

When you are looking to sell your letting agency, it is a good idea to convert as many let-only landlords onto fully managed services as you can, in order to create a more desirable business.