How to Run a Letting Agency: Tips to Attract Younger Customers
According to the international management consultancy firm McKinsey, people born after 1995 represent 40% of global consumers. What’s more, these ‘Zoomers’ from ‘generation Z’ rent more than any other age group, too.
A new generation of renters is afoot, and the way letting agents appeal to them is changing. Unlike renters of the past, today's young tenants have a much more consistent online presence - which not only means they have their pick of letting agents, but also that their digital expectations are far higher. Young tenants are more likely to look at online letting agencies rather than finding an ad in a newspaper or magazine, and they will probably make a judgement call after the first few seconds on your website, if you have one. Unfortunately for some, the age-old tactics of attracting people to residential lettings may no longer be viable.
In short, the survival of your lettings agency depends on your ability to adapt and overcome. But, what's the best way to do that nowadays? In this blog, we're going to explore how, if you're letting agency, you can appeal to a younger clientele in today's market.
The rise of Gen Z renters
One of the key mistakes almost every sector is guilty of, including property management, is not taking notice of young people and failing to adapt to their ways of thinking.
Well, ignore today’s youth at your peril. According to the international management consultancy firm McKinsey, people born after 1995 represent 40% of global consumers. What’s more, these ‘Zoomers’ from ‘generation Z’ rent more than any other age group. In fact, compared to their parents, they’re twice as likely to live in rented accommodation. This means, in theory, the private rented sector should be booming - but how can your agency stand out from the crowd and appeal to this youthful audience?
One thing is for sure: it all starts with understanding what’s important to them, appreciating how they consume information, and making a genuine connection. Read on to discover some of our top tips.
Be transparent
Young people have grown up with smartphones and the internet, so they’re used to being bombarded with different messages every day. And, although some claim that young people have short attention spans, this is actually quite misleading. They’re extremely switched on but have developed a ‘sophisticated filter’ that shuts out meaningless noise and insincere advertising slogans.
Therefore, rather than giving them the hard sell, win their trust by making your brand as human and honest as possible. Zoomers respond to brands that talk in down-to-earth language, so never boast or over-promise - tell it like it is. Any letting agency business that is able to cut through the jargon and present information in a direct and digestible way is bound to attract more clients and build good relationships that are founded on transparency and trust.
Get your letting agency website right
When it comes to appealing to the only generation that has grown up with instant access to the internet, letting agents need to prioritise investing in their own website. Any young person looking to get into the lettings market will likely look at the internet as a first port of call, so you need to make sure you give your online presence as much TLC as you give your physical office, if not more.
Make sure your website is clear, uncluttered, easy to navigate, and fast to load. It’s also vital to have an amazing mobile version. After all, 55% of all web traffic now comes via smartphones, so if you want to increase awareness of your letting agency, make sure your website is accessible in every format.
Creating a blog for your website is a good idea for search engine optimisation (SEO) purposes, but don’t use this to sing your own praises or sell your services too hard. Instead, it should give helpful information that young people might share regarding things like tenant law, understanding tenancy agreements, advice for dealing with problems, and how to negotiate a new lease. This will demonstrate that you’re on their side and aren't a letting agency that's only focused on the property business and money side of things. Convey that you care, and you'll find young tenants flocking to you.
Consider developing a letting agency app
You could even consider developing your own letting agency app, like Rightmove, and send push notifications when new properties become available. This isn’t as expensive as you might think. And it can have a big impact on your letting agency business, as you'll be set apart from your competitors and appear as a modern and tech-savvy letting agency.
If you're a letting agency that also engages in property management, you could consider developing an app that existing tenants can use to pay their month’s rent, get full support on any issues they're having, and agree adjustments with their landlord. The app could serve as a hub so that tenants can communicate effectively with their letting or letting agent and their landlord - something young people would definitely appreciate.
Harness social media
Research shows that Zoomers engage with brands on social media more than other channels. What’s more, 63% purchase a product or service at least once per month after seeing it on social platforms.
If you’re not making full use of Twitter, Instagram and Facebook, then now’s the time to get on board. YouTube is also extremely popular, with 32% saying they use it more than any other social website. You might be wondering what a letting agent can do on social media to engage people into letting residential or commercial properties, but the possibilities are endless.
For example, you could create your own channel to showcase virtual tours of new properties and business premises, make free guide videos offering professional advice about renting properties and the fine print, get a face-to-face review from an existing tenant about your letting agency service, and even ‘meet the team’ videos to introduce your staff and give your brand a more human feel.
Get back to letting agent basics
Social media works a treat, but traditional marketing tools can still prove effective for letting agents looking to appeal to a younger market. Email marketing, for example, is a highly effective way to pique a Zoomer’s interest. Nearly 60% of young people check their emails once per day, so if you're readily advertising properties through email, and offering email support, you're almost guaranteed to get picked up by some young people.
Zoomers love word of mouth recommendations and reviews too. They like to share, and they’re interested in what their peers think. There’s nothing more reliable than a personal endorsement; so create an account on Trustpilot or another online review site to help them spread the word. You can appeal to tenants to give you reviews via email.
Embrace sustainability
Young people feel a strong emotional bond with brands. In fact, 83% of Zoomers expect companies to align with their ethical and social outlook. Your letting agency should therefore demonstrate that it shares their stance on sustainability and environmental issues, with each letting agent making sure to promote the green credentials of each property or informing tenants on how they can make the property greener.
According to Facebook’s Meet The Future report, 45% of Zoomers would even prioritise sustainability over price. This supports separate research by data analytics specialists Kantar that today’s young people are 1.4 times more likely to pay a premium for eco-friendly products and services.
So how can your letting agency embrace sustainability? You can start with our free Sold On Sustainability Guide, which you can download here. It gives oodles of advice on everything from recycling and reducing waste to choosing a green energy provider, both of which can save tenants money in the long run.
You can also demonstrate your eco-credentials by sponsoring a sustainable charity or establishing a green initiative. For example, we plant a mangrove tree for every new customer. There are lots of ways in which letting agents can improve sustainability and help tenants to keep the high cost of living down; you just need to think outside the box.
Young hearts
The quest to attract young customers can actually re-energise your letting agency. It’s an opportunity to review your website, develop your brand and lettings business as a whole, explore new media channels, and adopt a sustainable approach that boosts productivity.
What’s more, although young people might be known to prefer authenticity and a more open, honest, and down to earth style, research shows that most people (irrespective of age) feel exactly the same way. This is particularly true in the property sector, where getting to know prospective tenants helps you to find the ideal home for them. So if you want to win new customers, try creating a more human brand that emphasises the personal touch. Think about it - would you be more likely to make a deal with a friendly agent who is making an effort to get to know you, or a cold, robotic one who doesn’t even offer a handshake?
Another great way letting agents can attract customers is by offering them a complimentary Home Setup Service. Learn more about how we can help you here.