Why outsource your client accounting?

If you put in the time to find out about your potential outsourcing partner, long-term rewards will be reaped. Partner with the wrong one and more could be lost than just money. Relationships with landlords will most certainly be damaged, employees will feel undermined and consequently agency reputations will inevitably be tarnished.

Where do you start?

Work out how much or how little you would like to outsource

Using client accounting as an example, would the outsourcing partner provide a complete start to finish service? This could include everything from processing client money, posting contractor invoices, making all payments, registering tenant deposits, collecting, and paying over to HMRC on your behalf to any non-resident landlord tax.

Alternatively, is continuing to do things like posting contractor invoices and registering tenant deposits ‘in-house’ viable?

Outsourcing client accounting will give business owners continuity of service, with rents processed every working day and no requirement to find cover for holiday or sickness. Furthermore, trusting the capability of staff at any company you chose to outsource to is paramount.

When looking to secure an outsourcing company consider:

• How long has the company been doing client accounting for letting agents?
• What’s the background and industry experience of the directors, partners, and management team?
• Will there be a dedicated processor assigned? Will they have a backup?
• Is the company a member of any recognised regulatory organisation (Propertymark, ICAEW, Property Ombudsman etc)?
• Does the company have professional indemnity insurance that covers theft and/or misappropriation of client funds?
• Is the company signed up with any of the recognised CMP scheme providers?
• Has the company got separate CMP cover in place?
• For referencing purposes can contact details of similar clients be shared?
• How long will the transition take and how will it be implemented and managed?

Don’t sign up until you’re satisfied with the answers. For owners and managers of businesses, the benefits of outsourcing to an experienced and client friendly company far outweigh the expense and burden of conducting the process in house. 

Save money on client accounting

Agents often realise there is potentially a significant cost saving, overheads can be reduced or redeploy existing staff to other roles. As the agency grows, outsourcing will often provide a cost-effective alternative to hiring staff.  If the owner currently undertakes the role, there is clear cost benefit in freeing up their time to focus on growing their business.

The Letting Partnership

Since starting in 2006, The Letting Partnership (TLP) has become an industry leader in the field and offers services exclusively to the letting industry, allowing for specificity of training, and ensuring all staff understand lettings from the ground up.

Tailored service packages, using an agent’s software or TLP’s own, pay-as-you-go pricing and no hidden costs, whatever your size—outsourcing your client accounting to The Letting Partnership could be the best business decision ever made.