Cashbacks sound great until you realise that you are paying the price in a different way.
Posted on March 31, 2021.
Cashback cons all property owners and guardians should familiarise themselves with.
You deserve a service provider who prides themselves on being truthful in their business conduct and approaching all situations with honesty. Global Guardians offers you just that.
Unfortunately, this high level of transparency is not always available from alternate Property Guardianship and security providers. Some will offer you large sums of revenue return in addition to their standard service to try and secure your business. You get a security service at no cost and you receive money back from the provider.
Initially, this might appear like a good deal, but offering you cashback can be an indicator that an organisation is willing to sacrifice an element of their service to ensure they can generate this payment to you. You can avoid falling into this trap by asking the following questions of the provider.
How will you maintain a high-quality service to us and how will you provide proof of this?
The aim here is to be confident that the provider places adequate emphasis on quality management and process adherence, therefore, being unlikely to cut corners to save costs.
What experience and expertise do your team members have?
An organisation that utilises their profit to develop their team members instead of using it as a bargaining chip is an organisation that values quality and teamwork.
How do you comply with regulations and how will you provide proof of this?
Again the aim here is to ensure that no health and safety corners are being cut in order to save costs.
How many licensees do you plan to place within the property?
Will this cause overcrowding or be in direct violation of regulations? Over occupying a property to generate extra income to meet payment for revenue return usually impacts the safety within the property.
How much money do you plan to charge the licensees in the property?
Overcharging licensees for their living space creates a situation that, legally, looks much closer to a tenancy agreement. It might then be possible for the said licensee to claim tenancy rights which can easily create long delays for development and issue when asking the licensees to vacate. It is for these reasons that managing these prices appropriately to be around 50% cheaper than normal market rates is critical.
Overall, many property Guardianship companies can offer you cashback in return for managing your property, however, that usually means they are not confident enough in the quality of their operations and are using the monetary incentive as a way to overcompensate for the poor quality of service you will receive. We want to help you cut through the ‘sales speak’ for you to make great decisions about the providers you trust to protect your vacant properties.
We are confident in the excellent quality we provide and the high standards we uphold to ensure that you save time, money and stress when dealing with your vacant property.
Learn more about our safe hands approach.