It may not be all about “tha money”, but we'd be lying if we didn't say that letting agents had an opportunity to make some cold, hard cash, especially when it comes to commission. That is, as long as you’re a top-performing agent who smashes targets and puts happy renters in high-quality homes.
In general, letting agents can really make a difference to their earnings through commission. Of course, there’s a basic wage too. But it’s the bonuses that can add a zero or two to the bank balance.
While not everything is about money, there’s no point pretending that it doesn’t play a role. That’s why we’ve created this article looking at how letting agents can earn more commission and maximise their earning potential.
It’s all about the OTE
When browsing letting agent job adverts, you’re likely to see OTE as the potential wage. OTE, of course, stands for on-target earnings, and much of this incorporates potential commission that is a reasonable target.
As a letting agent, not only will you want to reach that OTE figure; you’ll want to surpass it and go beyond expectations. Doing so will increase your reputation as a top letting agent in your patch while also providing you with greater financial gains.
Some might even say, "show me the money"
Here are our tips for earning more commission.
1) Luxury properties
If you’re a letting agent in London or Manchester, there’s every chance that you’re going to take on stock that stands head and shoulders above the rest. It doesn’t really matter which area you’re located either, as the capital, for example, has such a diverse mix of properties – including high-end ones – in all postcodes.
Letting a five-bedroom mansion is going to bring in more commission than, say, a one-bedroom apartment. Therefore, the smart money is on finding renters who want to live in exquisite homes. But it’s not the only way to earn more commission.
2) But don't ignore the smaller properties
In an ideal world, you will be letting large homes that come with higher earning potential. Yet, there’s something to be said about excelling with smaller properties. If your agency has plenty of stock for a specific property type, focus all your energy on making sure they let as soon as they come on the market.
Be the expert at letting two-bedroom terraces if that’s the property type your agency list the most. You might get one high-end property every six months, but if you can ensure a fast turnaround on the more regular stock, those commission numbers will soon build up.
3) Be the best “people person” you can be
Being a letting agent means you need to be a person of the people. Lettings is primarily a people business, and your focus should centre on getting professional, high-quality renters into the properties of your landlords. The best way to go about that is by listening and engaging.
Focus on always improving while offering an honest and comprehensive service. The best letting agents provide exceptional service and use all the tools at their disposal to find great renters fantastic homes.
4) Negotiate your rate
More often than not, a flat-rate commission will be agreed before you start. And the higher the property value, the better your commission. However, it’s worth negotiating before you start, landing on a commission rate both yourself and the letting agency are happy with.
Much of how much you negotiate depends on your experience, and you shouldn’t be unrealistic with your requests. But there’s no harm in getting into the role of a negotiator before the real stuff starts. Your new boss may even be impressed with your skills.
5) Use renter-friendly platforms
Speeding up the rental process is one of the best ways to earn more commission, and you can do that by using platforms like Movebubble. Take our Home Walkthroughs, for example. Our 700,000-plus-strong renter base can search, view and secure a home without even viewing a place physically.
If your agency's properties are on our platform, you can turn lets around in record time. We verify all renters too, meaning you don’t need to worry about the referencing process and can focus on getting those all-important homes rented out.
6) Be a market expert
It goes without saying that being a market expert is key to earning more commission. Aim to be the best agent on your patch and show renters and landlords that you know the local market better than anyone else.
That includes understanding the local community, the locations of the best places to eat and all the top travel tips for getting around. Landlords will be impressed that you can rent their flat in record time, while renters will feel confident that you’re giving them excellent information about the area.
The best around
Earning commission plays a significant role in the world of letting agents. By focusing on property types, listening to what your clients want and using renter-friendly platforms, you can increase your chances of earning high commission and cementing yourself as one of the top letting agents in your area.