Thoughts on chosing a letting agency
Many times we have cottage owners ask us about the issues to consider when chosing a letting agency. Should they go with a large national chain, a small local agency or maybe one which concentrates on the county and area where they are.
To be truthful all these options have their advantages, but to us an agency which can offer good local knowledge, a large customer base and many more benefits is ideal.
This is the article we have written to explain these views. We hope you find it useful.
Chosing a holiday letting agency can be a difficult decision when there are so many pros and cons to weigh up.
Here at
Northumbria byways we believe in being upfront and transparent with what we can offer.
Many times we find that the most difficult part of our service to talk about is the marketing and promotional work which we do. There are often no easy ways to distinguish between agencies and everyone has their own opinion on what matters.
This is what we think.
Broadly there are three types of agencies which you can partner with.
Small local agencies. These will typically concentrate on just one area or one town.
Medium sized agencies which specialise in a county wide area. This is where Byways are.
Large nationwide agencies.
So how do you chose? Well lets put the facts down on paper.
Commission rates. The larger agencies will generally be in the 20% to 25% range. Small and medium agencies should have rates just below 20%.
Exclusivity. Be very careful about surrendering your exclusivity to market your holiday house. You might want to have your own website to help bookings. Also we know that the larger agencies will sometimes require commission for owner bookings during the summer.
Visitor numbers. This is a key number to look at when chosing your agency. You really need to know how many visitors they get to their website. But take care here as there are traps for the unwary.
Be careful to make sure you know what you are being told. The most useful statistic is actual visitors. At Byways we have well over 100,000 a year. But sometimes you will be quoted "hits". This is closest to the number of pages seen by a visitor and is usually much higher as people look at more than one page. At Byways we have over 1 million hits a year.
Make sure that you only look at relevant visitors. Our experience is that when visitors come to a website they generally have a specific area in mind.
There are always opportunities to change their mind. For instance someone looking for a holiday in Seahouses might be persuaded to try Bamburgh or Craster.
During peak season we can also persuade visitors to try a little further away from their chosen area. If you look at an agency which specialises in just one village or town you need to ask yourself are they going to get enough visitors to offer these opportunities to persuade them to come to your cottage?
Remote holiday homes. Having a property by the beach is great,most visitors will know the area and their main requirement is proximity to the sand! But what if your house is hidden away in the Cheviot hills? The chances are that most people will not have a clue as to where you are and what the area is like. You will need an agency who offer more than just a "listing" on their website. They should talk about the local area, have pictures, talk about it in a blog and so on. Without information like this on their website any agency will find it difficult to promote remote cottages.
Email campaigns. Loyalty is worth a lot. Customers who come back time and again are worth their weight in gold. A good agency will email their customer list on a regular basis. At byways we will send out over 25,000 emails during 2010.
A quality brochure. The internet has changed the holiday letting world with more and more people looking and booking online.
However there are still many people who prefer a hard copy brochure. Not everyone has access to the internet and there are still customers who prefer the more traditional quality brochure. Here at Byways we produce a quality brochure which is designed to last.
Search engines. Sometimes we hear people say " If you search on google then they are top for this or that village".
On the face of it this is a good selling point. However what is not explained is the idea of the "long tail". Unless you are in a market where just one word or one combination of words are used to explain what you sell then your customers will come to you through many different search terms. As an example if you look at Seahouses then Google lists at least 10 commonly used search terms. You might prefer an agency who ranks well on most of these as opposed to just one or two.
Adwords. Google adwords is a way in which you can buy visitors to your website.The cost per visitor can be small, often 50 pence or less but you have to remember that there will be potentially thousands of people looking so it can cost a fortune.
Most agencies just advertise themselves on adwords. You click on the advert and go straight through to the home page of their website. At Byways we are the only agency we have seen who will advertise a specific cottage and when clicked that cottage comes up in Google.
Marketing around the edges. There are so many ways to promote your cottage over and beyond the basic idea of being found in the search engines.
As an agency grows in size then the percentage of visitors coming from other areas will also increase ( source:alexa). You should talk to any prospective agency about how else they can promote your cottage. In addition to the points above this is just a small list of the other ways:-
Are they using Social Media, for example facebook?
Do they have multi lingual pages on their website?
Are they taking advantage of the geographical mapping websites like Panoramio?
Do they have partnerships with specialist websites, for instance those who cater for customers looking for Dog Friendly accommodation?
So in conclusion what we wanted to say is that marketing your property is often much more complex than it seems. There are good opportunities out there and you need to ensure that you chose an agency which will take advantage of them to help you get more bookings.
Labels: chosing an agency, Marketing