There are some popular threads on UK Business Forums about many aspects of property letting. Here's an article on how to set up as a letting agent to add to the mix of coverage by the UKBF community.
UK Business Forums spoke to Chris Minchin owner of CDM Property Lettings in Aberdeen about how he got started in lettings work nearly ten years ago and how he has developed his own business over the past six years.
What did he learn from this early experiences?
'I suppose I got that insight into the dynamics of the industry. To do it well, you need to be attentive to landlords and to tenants in equal measure. Both of them want responsiveness and professionalism, and you sit between them.
'It also got me thinking about the efficiencies needed to run a lettings operation effectively,' he said.
'I knew from the start that back-end systems and process was one crucial nut to crack,' says Minchin.
'By using software smartly you can get so much administration done effectively for a portfolio of properties. It cuts down on duplication and on wasted time by only giving visibility of diarised tasks at just the right time to act.'
Minchin says that by focusing on this element of his responsibilities he soon got to the point where we could look after his properties in just a part of his working week. And it naturally prompted him to think about starting out on his own terms.
'It was badged as a will-it-work grant, I remember. It was basically some cash to test the market: to form a business and create some marketing collateral and a website. And that's all I needed to prove the proposition. I remember I used part of it to put some stickers on my car and the phone soon started ringing.'
What did Minchin do to make his Aberdeen business launch for the lettings market special?
'At the start I promoted the business as offering a wraparound personalised service to landlords that would free them up. It was a good way to start conversations on a slightly different footing to some of the established competition,' he says.
'The premise was and remains that we've thought of everything, from advice on making a property appealing to a particular target tenant to taking care of all the due diligence and compliance.'
'It devalued our service. You feel slightly exposed when you launch and you naturally want business to flow, but it shouldn't be at any price. If you are delivering value, people are happy to pay for it - and it actually breeds confidence on both sides of a deal when the money is fair.'
'It wasn't that established at the time we first took the plunge though it is now - and with good reason. It delivers on every front by cutting out duplication and enabling mobile working and more. The developers are very responsive when you want a new feature, too. I couldn't fault it: it's money seriously well spent.
'Plenty out there in the marketplace are still working off spreadsheets and I know we've got an edge on them. You just need fewer staff to deliver the same quality of service,' says Minchin.
'The landlords may pay most of our fees, but a tenant is buying a service and deserves to be looked after. That's always been my philosophy. And the upside of doing it well is the benefit on both sides, as landlords want long-term tenants and tenants will stay on happily if they are being looked after. It's a win-win.'
'Perhaps I was doing something wrong on that side, but it means little IMO to have a follower the other side of the UK who might be interested...
'On a local level, keep an eye out for houses that might have skips outside or clearly have been let out in the past. Finally, even though it probably won't be possible with the bigger developers, reach out to any commercial developers that do multiples of flats.'
namesweb
'ARMA (Association of Residential Managing Agents), ARLA (Association of Residential Letting Agents) and RICS (Royal Institution of Chartered Surveyors) are the three main regulatory bodies to contact before you start.'
Shaun_Pearce
This article is brought to you by .uk, an attention grabbing web and email domain used by businesses who want to stand out from the crowd, bringing UK values to a global audience. From ambitious start-ups to vibrant brands, this dynamic online space offers a shorter domain that puts the emphasis on you. Get your .uk web domain here.
UK Business Forums spoke to Chris Minchin owner of CDM Property Lettings in Aberdeen about how he got started in lettings work nearly ten years ago and how he has developed his own business over the past six years.
Getting into lettings
Minchin started working quite informally in lettings while at university, which helped to support him financially.What did he learn from this early experiences?
'I suppose I got that insight into the dynamics of the industry. To do it well, you need to be attentive to landlords and to tenants in equal measure. Both of them want responsiveness and professionalism, and you sit between them.
'It also got me thinking about the efficiencies needed to run a lettings operation effectively,' he said.
Starting out as a professional
After a spell working in the hospitality sector after graduating from university, Minchin re-entered the lettings profession in a salaried role and started immediately to apply what he knew.'I knew from the start that back-end systems and process was one crucial nut to crack,' says Minchin.
'By using software smartly you can get so much administration done effectively for a portfolio of properties. It cuts down on duplication and on wasted time by only giving visibility of diarised tasks at just the right time to act.'
Minchin says that by focusing on this element of his responsibilities he soon got to the point where we could look after his properties in just a part of his working week. And it naturally prompted him to think about starting out on his own terms.
Becoming your own boss
At the ripe old age of 23, Minchin was ready to become his own boss. And he started with support - and a startup grant worth £250 - from the Prince's Trust:'It was badged as a will-it-work grant, I remember. It was basically some cash to test the market: to form a business and create some marketing collateral and a website. And that's all I needed to prove the proposition. I remember I used part of it to put some stickers on my car and the phone soon started ringing.'
Being different
In any established market a point of differentiation counts for a lot.What did Minchin do to make his Aberdeen business launch for the lettings market special?
'At the start I promoted the business as offering a wraparound personalised service to landlords that would free them up. It was a good way to start conversations on a slightly different footing to some of the established competition,' he says.
'The premise was and remains that we've thought of everything, from advice on making a property appealing to a particular target tenant to taking care of all the due diligence and compliance.'
Underselling - and why you shouldn't
One regret Minchin has about his launch into the market was his pricing.'It devalued our service. You feel slightly exposed when you launch and you naturally want business to flow, but it shouldn't be at any price. If you are delivering value, people are happy to pay for it - and it actually breeds confidence on both sides of a deal when the money is fair.'
Sorting the back office
Minchin's emphasis on systems and process soon led him to the right software partner for his new operation. He says he swears by a software platform for property professionals called SME Professional.'It wasn't that established at the time we first took the plunge though it is now - and with good reason. It delivers on every front by cutting out duplication and enabling mobile working and more. The developers are very responsive when you want a new feature, too. I couldn't fault it: it's money seriously well spent.
'Plenty out there in the marketplace are still working off spreadsheets and I know we've got an edge on them. You just need fewer staff to deliver the same quality of service,' says Minchin.
Loving your landlords AND tenants
The other point Minchin emphasises repeatedly is that success as a lettings agent comes from looking after landlords and tenants alike.'The landlords may pay most of our fees, but a tenant is buying a service and deserves to be looked after. That's always been my philosophy. And the upside of doing it well is the benefit on both sides, as landlords want long-term tenants and tenants will stay on happily if they are being looked after. It's a win-win.'
Five ways to succeed as a lettings agent
- You need market and social media presence. So network well through groups like BNI UK and use social media platforms to spread the word on your properties; Facebook at Twitter are particularly good
- Get your back office systems humming
- Deliver for landlords and for tenants and reap the benefits of word-of-mouth recommendation on both fronts
- When situations arise, always present solutions rather than problems
- Embrace the future by weighing the benefits of services like live-streaming
From the forums
'I found [my] best success [as a letting agent] came from door to door, actually discussing with landlords what their issues are, and being a credible face. This is time-consuming, but I found it far more targeted than trying anything with social media. I had hundreds and hundreds of likes and follows [on social], but zero leads and enquiries.'Perhaps I was doing something wrong on that side, but it means little IMO to have a follower the other side of the UK who might be interested...
'On a local level, keep an eye out for houses that might have skips outside or clearly have been let out in the past. Finally, even though it probably won't be possible with the bigger developers, reach out to any commercial developers that do multiples of flats.'
namesweb
'ARMA (Association of Residential Managing Agents), ARLA (Association of Residential Letting Agents) and RICS (Royal Institution of Chartered Surveyors) are the three main regulatory bodies to contact before you start.'
Shaun_Pearce
This article is brought to you by .uk, an attention grabbing web and email domain used by businesses who want to stand out from the crowd, bringing UK values to a global audience. From ambitious start-ups to vibrant brands, this dynamic online space offers a shorter domain that puts the emphasis on you. Get your .uk web domain here.
