Bringing leasing in-house: The what, the why, the how.
The rental market is undergoing a transformation driven by rising operational costs and increasing demand for efficiency. For institutional owners and operators, this shift presents both challenges and opportunities. One strategy gaining traction is the move towards in-house leasing—centralising leasing operations to reduce dependency on external agents. This approach not only cuts costs but also grants owners greater control over the leasing process and their asset strategy, enhances resident experiences, and leverages data for superior decision-making.
The traditional rental market, long dominated by third-party agents, is facing disruption. With the rise of institutional ownership and the need for more sophisticated management, the conventional outsourced leasing model needs to be revised. Owners and operators increasingly recognise the limitations of relying on external agents who may not align with their professional standards or strategic goals.
As the market evolves, institutional owners demand more than basic transactional services. They seek deep insights into their operations, detailed analytics on potential residents, and a more tailored approach to property management. This shift is driving a new standard in the industry, where efficiency, control, and data-driven decision-making are paramount.
One of the most immediate benefits of bringing leasing in-house is cost reduction. Owners can save significant amounts per lease by eliminating the need for third-party agents. For example, Residently's platform saves an average of £1,000 per lease, directly contributing to the bottom line. These savings can be reinvested into the property, enhancing its value and appeal.
Bringing leasing in-house gives owners complete control over the resident journey. From the initial enquiry to lease renewal, every interaction can be tailored to reflect the brand's values and the community's unique benefits. This control ensures that the leasing process aligns with the owner's vision, enhancing the overall resident experience and fostering long-term loyalty.
Traditional leasing models often result in fragmented data stored across various platforms with little integration. In contrast, an in-house approach, supported by a unified platform like Residently, allows for seamless data collection and analysis across the entire leasing cycle. This holistic view enables owners to make informed decisions, optimise pricing strategies, and identify trends that can drive higher yields.
Owners who have direct control over the leasing process can implement strategies that enhance resident satisfaction and retention. In-house leasing teams, familiar with the property's operations and resident needs, can provide a personalised service that external agents cannot match. This focus on resident experience can lead to higher renewal rates and reduced turnover, further stabilising income streams.
An in-house leasing model allows owners to adapt quickly to changing market conditions. Whether adjusting pricing, launching targeted marketing campaigns, or responding to resident feedback, in-house teams can act swiftly without the delays often associated with third-party agents. This agility is crucial in a competitive market where responsiveness can differentiate between a signed lease and a missed opportunity.
Bringing leasing in-house also gives owners greater control over their overall asset strategy, allowing them to align leasing decisions with their long-term goals, whether maximising cash flow, repositioning assets, or enhancing the property's market appeal. By managing leasing internally, owners can make strategic adjustments on the fly—such as implementing targeted campaigns, adjusting lease terms, or selectively approving residents based on broader investment objectives. This level of control ensures that every leasing decision supports the owner's vision for the asset, creating a cohesive strategy that drives sustained value across the portfolio.
Transitioning to an in-house leasing model requires careful planning and execution. Below is a step-by-step guide to successfully help institutional owners and property managers make this shift.
Start by evaluating your current leasing processes. Identify areas where external agents are underperforming or where costs are disproportionately high. Understand the pain points in your existing system, such as delays in communication, lack of control over the residents' experience, or fragmented data. This assessment will provide a baseline for measuring the impact of bringing leasing in-house.
Invest in a robust rental operating system like Residently to centralise leasing operations effectively. Our platform is finely tuned to the nuances and demands of single-family owners and operators and is designed for smaller in-house teams looking to manage large, dispersed portfolios.
Assemble a dedicated in-house leasing team that understands your brand, property portfolio, and resident base. This team should be well-versed in your operating procedures and capable of delivering a seamless, personalised experience for prospective residents. Training and ongoing support from a system like Residently will empower your team to perform at their best.
Create standardised processes for every aspect of leasing, from initial enquiries to lease signing and renewals. This standardisation ensures consistency across your portfolio and simplifies training for new team members. It also allows you to maintain high service standards, regardless of property location or market conditions. Luckily, our platform does this for you.
Use the data collected throughout the resident journey to refine your leasing strategy continuously. Analyse trends, identify bottlenecks and adjust your approach based on real-time insights. This proactive approach will help you stay ahead of the competition and maximise the return on your investment.
Encourage collaboration between your in-house leasing team and other departments. A unified approach ensures that everyone is working towards the same goals and that residents receive a consistent, high-quality experience throughout their stay.
Review the performance of your in-house leasing operations regularly. Track key metrics such as time-to-lease, vacancy rates, and resident satisfaction. Use this data to identify areas for improvement and make adjustments as needed to optimise your processes.
The Residently system empowered Dorrington to take charge of every aspect of its leasing process. The platform streamlined operations and automate repetitive tasks by connecting the entire journey from initial enquiry to renewal, significantly reducing the administrative burden on their teams. Additionally, Residently's customisable features allowed Dorrington to maintain control over its brand and experience, ensuring that the resident experience was consistent and reflected its values.
Furthermore, with their leasing journey connected and optimised, Dorrington gained invaluable insights into resident demographics, preferences, and behaviours, facilitating data-driven decision-making aligned with their strategic goals.
Since adopting Residently’s system, Dorrington has successfully brought the majority of lettings in-house—with one negotiator able to manage a portfolio of 500+ properties across London—resulting in savings of approximately £1,000 per lease. This substantial cost reduction, enhanced operational control, and renter satisfaction underscore the transformative impact of bringing leasing in-house with purpose-built technology.
"For some time, we were looking for a digital solution that would speed up and improve the signing-up experience for our prospective residents and reduce our costs. Residently have achieved this. Their platform effortlessly guides customers all the way through to lease signing and beyond. We really like the real-time visibility you get as this helps us deliver the best possible sign-up experience to our residents from the moment we receive an enquiry." - Amy Davis & James Watkins, Asset Managers at Dorrington
Essential Living, a London-based property developer focused on revolutionising the rental market with high-quality, community-oriented living spaces, has also made the jump to bring leasing in-house. Essential Living understands the importance of branding and community as a modern, savvy owner, and our platform gives them this control.
“Another deal-clincher for us was that none of the other property managers had the technology or ability for us to drive an in-house model. We can save a huge amount across our portfolio by bringing leasing in-house. Plus, when you’re trying to build a brand, your messaging and what you stand for need consistency, and Residently gives us that control.” - Nick Woodward, Lettings Director at Essential Living
“In-house leasing is more than just a cost-saving measure; it's a strategic move that grants institutional owners greater control, enhanced data utilisation, and improved resident experiences. With our technology and processes in place, you can transition smoothly to an in-house model, reaping the benefits of increased efficiency, agility, and profitability.
We are proud to collaborate with forward-thinking companies like Dorrington and Essential Living who have made the jump. By integrating our platform, we’ve improved their gross-to-net and ensured a high-quality, consistent experience across their diverse portfolios. For the first time, they can rely on real-time, data-driven customer insights that help them make informed decisions on new lets, renewals, and how to improve the yield across their assets.
We’re excited to continue building on this solid foundation and work closely with the Dorrington and Essential Living teams to deliver even more innovative features and tools that improve their economics while delighting their residents." - Ed Tinsley, General Manager at Residently
