Do HMO Landlord Letters Work for Rent2Rent

HMO Landlord Letters
Find out how they will work for you!

Do HMO Landlord Letters Work for Rent to Rent?

This is what I think anyone looking for their first deal should be doing.

A warm lead is where the landlord calls you. You send them a letter in the post in which you demonstrate your value and what you can offer, so when they call you, it's much easier.

Nobody calls you because they're delighted with a service they're already receiving and because they've no problems at all.

The landlord will be calling for a reason and it’s up to you to find out what the reason is, and then you're able to solve the problem.

It makes a much easier and better conversation.

How do you make that happen?

We’re known for perfectly crafting a magnetic marketing letter to landlords.

When you're speaking directly to your perfect customer, and we know from all our other conversations with landlords and from our own experience as landlords, exactly what problems they're facing in our local area.

Two thirds of our properties have come through marketing letters. At the end of this blog we’re going to share with you how to get our current marketing letter, and the pack we’ve put together explains how to write your own marketing letters.

Our marketing letters are constantly evolving, because these letters are converting really well for us.

We send out to a very niche set of landlords, there are only 300 in our local area that are in the exact areas that we want to deal with and the exact number of rooms that we are looking for - so we don't go wide, we go narrow.

We get a really good response from the letters, and some people have been receiving our letters for over a year before they start calling us.

There are two things you've to do:

Keep evolving the type of letter that you're writing
Keep sending the letters out

What are the returns on marketing letters?

We’ve spent less than £2,000 on marketing letters over the past two years, which has brought in just over £23,000 a month (gross), and just over £276,000 a year.

And on top of that, we're working through five enquiries, which could bring in another three properties - each of these could bring in an additional £6,000 a month!

This is also in addition to the properties that we already own or that we’ve had a personal introduction to that we were referred to in terms of management through a letting agent or through a friend.

The most calls we’ve had from one marketing letter was 22 people from a letter that was sent to 300 people. And in direct marketing terms, that's a fantastic return.

Remember for each letter you send, you only need one person to respond and you only need one deal to really make money, and to make the whole thing worthwhile.

Lots of people send letters but aren’t getting a response – why does this happen?

One of our landlords saves up all the letters that get sent to him from different companies who rent out properties on the same basis as us and when I look through them, 80% are virtually the same wording.

It's important to add something different, have something unique, and make your letters all about them and how you can solve their problems – whether it’s empty rooms, or tenant’s calling constantly.

These are the sort of things each letter should contain, and we’ll provide a copy of our letters in the packs as an example, so you can see that they are totally different from other letters and what’s worked well for us.

You can adapt that to make it really, really work for you and for your area, because each area has its different challenges, and that's what you need to focus on.

There are two areas to think about – The head and the heart

The head side is the landlords don’t want to be losing money through empty rooms, they don't want to be taking the calls and dealing with all the hassle of things like the maintenance.

The heart side is that the landlords wants to be proud of their property investment, they want their property investment to work well without them having to fully manage it.

You're offering both of those things, so that needs to come over in the letters that you send, and if you can make that happen, you can connect with people's inner desires.

It's not just about what's on the surface, it's about being that person, or that company who's delivering something special.

So, in our case, we say “Total piece of mind”, because when your property is with us, you don't have to worry about anything for those five years, we will worry about everything instead.

Here is an example, the other day we were at a property which was being managed by a letting agent.

The landlord was showing us around and told us that she was going to the property on a weekly basis to do the recycling and cleaning - which is ridiculous because the letting agent (who is taking 10% plus VAT fee), had told her that they're not responsible for the recycling!

When we manage properties, we do everything.

The landlords won't have to go there to clean or sort out the recycling. And we can still offer that landlord better money than she's getting at the moment.

You've got to have real confidence in the fact that you can deliver a better service than what is currently out there from some of the letting agencies.

If the landlords are calling you, you know for sure that whatever service they're receiving at the moment, it’s not up to par, otherwise they wouldn't be on the phone to you.

What to do when a landlord calls

It's very much the same as the marketing letter.

You give your proposal in one or two sentences on what you're offering and then you ask them to tell you a bit about the property.

Here are a few things you need to ask the landlord

Where did you hear about us?
Quite often it’s from the marketing letter, but sometimes it could be a referral.
What made you call today?
An extremely important question to ask – once you know why they called, you can tailor your services to their specific needs.
Property details
Address, number of bedrooms, showers, toilets, receptions, does it have an HMO license, how many people the license is for (all dependant on what area you're in and if it needs a license).
What’s the current situation of the property?
Is it being managed by an agent? What are the fees? How many tenants currently in the property? How much rent do they pay?

Get a really good picture of what's going on with the house before you even speak about a viewing.

All these things are much easier to find out when you're on a warm call.

So, just to summarise the most important way of sealing your deal is to get warm leads, and the best way to get warm leads is direct landlord letters that meet a certain criteria - what can solve the landlord’s problems and pain points.

I hope that’s been useful and remember to look at our marketing letters as an example to get you started.

Speak to you soon,

Stephanie & Nicky

xx

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