"In the changing rental landscape, the most successful providers will be those who focus on retention over churn and adding value wherever possible is the surest way of achieving this."
Tenant perks platform, Vaboo, has researched the ways that letting agents can identify new revenue streams in the wake of the tenant fee ban, under which they are expected to lose up to £10m of revenue per year.
Vaboo says the renting demographic is diversifying and expanding at a rapid pace and with this, so too, is the opportunity for agents. It believes shifting focus from churn to retention and building loyalty and customer satisfaction is the surest way of being able to thrive in the changing Private Rented Sector.
The power of renter voice
Long has customer feedback been a cornerstone of other sectors, and Vaboo says the PRS should "begin to sit up and pay attention to it". By harnessing the power of renter data, agents will be able to easily ascertain what renter demand is and in turn find service add-ons that can add further value to the service they deliver as well as establish new revenue opportunities.
Vaboo recently conducted a renter poll to identify what renters get up to behind closed doors.
Aside from the obvious like watching the TV, activities that also ranked highly were cooking and learning. Needless to say, doing the laundry and cleaning came bottom of the pile. Vaboo also found that 68% of renters would be happy to pay more for a better service.
So, what can be learnt from this kind of insight?
Primarily, it’s the most efficient way of establishing what service add-ons are going to be seen as most worthwhile from renters. Utility and internet companies have long been the bedfellows of agents, but there is huge potential to uncover new revenue streams by thinking a little out of the box and customer feedback is a great place to begin this journey.
Renter appetite for paying extra for this kind of service is there, the crux is finding additions that renters think are worth it.
Vaboo says offering up competitive prices on other relevant services not only serves as an excellent opportunity to uncover alternative revenue streams, but it also enables agents to help renters tackle issues surrounding affordability.
Rents are unlikely to decrease but being able to save renters money in all other aspects of their lives is a sure way to help tackle this problem and at the same time build a more robust service that renters appreciate.
In the changing rental landscape, the most successful providers will be those who focus on retention over churn and adding value wherever possible is the surest way of achieving this.
Although this type of approach requires more time and effort on behalf of agents, ultimately it will pay for itself in no time. By enhancing existing service offers with a solid understanding of what renters actually want, agents can use their time more effectively, grow their business and crucially identify new revenue streams.