An untapped opportunity for Local Estate Agents is to reposition themselves to ‘Manage property for Owner-Occupiers’
The High St business model is changing and fees declining in most cases, the race to the bottom can be halted.
Why do households, with no or little experience or interest in property management liaise with builders, plumbers, gardeners etc… for the day to day management of their own homes?
Me included and others I have spoken to, would happily pay a monthly transaction fee to have our own homes managed by a 3rd party to ease this household administrative burden, IF, they were competent, trustworthy, using technology and unobtrusive to the family.
To achieve this new market space, the Agent will need to professionalise, skill-up, educate themselves on property management and shrug off the sector’s reputation, sometimes earned through poor practise, some which may not be illegal though driven by short-termism. A valuable bit of advice for Agents is to keep in mind, that Buyers and even Tenants could be a paying customer one day to an Agency as a Landlord or Vendor.
‘High St Agents’ are perfectly positioned to occupy this new space, as local property management experts armed with their trade contacts as their traditional agency market declines, through disruption online or as their service becomes a commodity product.
Additionally, as and when the ‘Managed Owner-Occupier’ is ready to Sell or Let, the incumbent Agent are in a perfect position to build upon that relationship with relevant property management history.
An Agent, with a ‘new experience brand’ or an existing residential business, could create this new space similar to the way Airbnb has innovated a new multi-billion business within the traditional tourism sector.
Is there somebody out there ready for this opportunity? Only time will tell.