Research
As part of Allsop's lease up approach we always research the local market to better understand where we can seek to take advantage of local trends but also so we can fully understand the market drivers and adjust our approach to lease up and marketing appropriately.
As can be seen from the graphic whilst the wider Manchester and Salford conurbations have a string supply of BTR and PBSA, Podium has in fact has little local competition. We believe therefore it is important to consider these wider comparable when assessing our own rental tone.
We have included PBSA within this search due to the proximity of local universities including Academy 92.
Further evidence of Greater Manchester areas student retention rates can be seen by clicking the heat map below.
Corporate Targets
The ever growing workforce, caused by inward migration as well as the high postgraduate retention rates of the city underpins the opportunities for targeting employees of these businesses through SEO and PPC advertising much like any other potential AST tenant. However the ability to target them for relocation opportunities is also a valid avenue as people move from one corporate office to another.
Additionally we are aware a number of firms especially the NHS where employees could be transferring and in need of assistance with relocation. Open days specifically targeted at NHS, Manchester Airport as well as Manchester Football club could all be profitable avenues, especially when combined with zero deposit options.
Letting and Leasing
Our approach to lettings and leasing is to make the process for applicants easy, transparent, convenient and enjoyable. We know the process, legislation and compliance ‘inside out’ and have the benefit of experience and ability to focus on the service element.
We facilitate all mediums of customer contact – virtual, face to face, email or over the phone. In line with consumer trends, we are moving more toward virtual services, however we value one on one customer interaction above all else. We like to get to know our customers and ensure they are well informed.
As mentioned earlier, we have invested in our Yardi platform, which we believe is a service differentiator over many, as a letting mechanism, and feedback from applicants has been very positive with 95% of online applications received being accepted and proceeding to move in.
The lettings and leasing process has several key elements and below highlights areas of particular focus and our approach.
Vetting
- We provide extensive amounts of information to residents to help customers understand the letting process including a detailed and branded residents handbook, requirements for references, financial commitment and what to expect
- We believe in a robust referencing process to manage risk and adhere to strict referencing criteria which we prefer to be above industry standard measures. Our experience tells us this stringent process results in low possession claims and minimal voids periods
- Criteria is tailored to client requirements, each development and project, and we generally advise criteria to be based on market rents and salary bands
- Visa and passport checks – The Immigration Act dictates that agents should now check for visa validity for the first day of any tenancy giving any PR the ‘right to rent’ – we prefer visas to span the entire length of the tenancy
- We generally use UK Tenant Data and Let Alliance for national / international referencing, however can and have used other suppliers
Letting
- We work with clients to create bespoke tenancy conditions and processes including tenancy length, break clauses, pre tenancy conditions, incremental rental increases for tenancies longer than 12 months, termination notices and guidance on possession proceedings
- We recommend longer term tenancies, where possible12-36 months and would caution the issue of licences over ASTs, except where an appropriate use is involved i.e. carparking lease
- We encourage robust processes for renewals and agreeing uplifts in rent; the process involves early contact with the resident, seeking advice and instruction from our client and / or agreeing parameters in advance. Renewal processes are driven through electronic document signing.
- We support transparent and fair increases (ie CPI plus uplift %) adding weight to being fair and honest and enhancing reputation
- We carry out extensive market research to ensure accurate pricing which in turn minimises voids and maximises returns
- We believe in maximising rents, however we also believe that higher occupancy in a shorter timeframe is more lucrative – you can never make up lost revenue due to vacancy, it is dead time
- Generally we prefer to set and agree rent tolerance levels in the vicinity of 3-5% so we are able to efficiently process and agree lets with applicants
- We believe long term relationship building equals long term tenancies, a low churn rate, high retention and ultimately a better financial performance and hence our ethos is to encourage our staff to get to know their residents and develop genuine ties where people care about each other
- We accommodate and encourage inter portfolio moves / support life changes – we are after all, creating a sense of community and people help each other in communities