Your agency’s tenancy policy could win you more clients. How? The new breed of savvy property investors know that one tenancy policy poses less financial risk and can make them more money than the other. So, they are now doing their research and asking more questions such as, ‘Does your agency recommend periodic or fixed term tenancies?’ to ensure they hire property management agencies which use the less financially risky tenancy policy- fixed term tenancies.
Property investors primarily want fixed term tenancies because they pose less financial risk than periodic term tenancies. As you know, fixed term tenancies mean each tenancy has a start and end date. Prior to the expiry of the end date, property investors and their tenants have the ability to negotiate and secure a renewed fixed term tenancy. This means that your clients know exactly when additional fees are added and can better manage their investment properties’ financials. So, property investors prefer to hire property management agencies with this less financially risky tenancy policy as it can potentially make them more money.
Savvy property investors understand that there are some cases when property management agencies should recommend periodic term tenancies, however. For example, if property investors are uncertain about their intentions for their investment properties, such as if they are considering selling their properties in the near future. Or, another case is if tenants are looking to purchase their own properties or soon transferring to other locations due to their jobs. In such cases, savvy property investors understand that periodic term tenancies are okay, provided that it’s been negotiated with and agreed to by them.
So, if prospective clients ask you or your property management team, ‘Does your agency recommend periodic or fixed term tenancies?’ what should your answer be? Your answer should be fixed term tenancies. This shows prospective clients that your agency has a less financially risky tenancy policy in place, which gives clients greater potential to make more money on their investment properties or portfolio. If your agency’s tenancy policy is currently periodic then I suggest you consider changing to only fixed. Fixed term tenancies are what the new breed of savvy property investors want, so putting this tenancy policy in place in your agency could very well win you more clients.
For more information on how to improve your property management business’ operations and service standards so you can answer prospectives’ questions correctly and win more clients, visit ireviloution.com/findyourpropertymanagernow and order your paperback or eBook copy of ‘Find Your Property Manager NOW: Hire the right agent and make more money’.