Running a Letting Agency business from home

[amanda1112]

Hi everyone

Can I have your thoughts please on running a letting Agency business from home. Obviously I will check with mortgage company if its ok to do so first. What are your views regarding credibility? I could lease an office costing £10-20k per year or run from home with little overheads to start with? Are there any landlords on here who think that an office situation would be more attractive to them. Does anyone do this from home? All constructive comments welcome and appreciated.

Many thanks
Amanda

 

[vvaannmmaann]

Don't see a problem with it.
Email and 'phone won't identify your address.For meetings,use a local cafe,hotel or bar.As the business grows,consider expansion then.


(PS My friend with the portfloio in Plymouth is overseas at the moment.I will remind him when he returns.)

 

[amanda1112]

I don't mind landlords knowing where I am its the tenants im worried about. Some can get a little nasty when there's a dispute. I remember once we couldn't get into the office when I worked for an agency because they put superglue in the locks.

 

[That Guy]

Where will you be advertising the properties?

I take it:

- Web Site
- Right Move
- Local Newspapers

Most letting agents have the properties advertised in the windows thats all

 

[amanda1112]

I am considering advertising on rightmove or find a property.com although quite expensive for someone starting out (approx £300 per month). Also I am buying the southcourt package which comes with a hosted website. All properties will be listed on there. Have enquired about local paper advertising but it can be quite costly i.e £58 per day for a 3cm x 2cm box in the classified section.

Any suggestions please for cheaper advertising.

 

[SFD]

Hi Amanda,

Do you have any experience within the letting industry?

What has made you want to start your own lettings business?

 

[amanda1112]

I have over 5 years experience working full time in a letting agents with over 120 properties. I have taken on all roles from conducting viewings, taking inventories, liaising with landlords, advertising, invoicing, periodic inspections, organising works, dealing with contractors, rent collecting, commercial leasing, I even ran the company accounts the list is endless. Multi tasking is one of my best qualities in this area. Ive done it all. I feel I have all the experience needed in this field. There have been many many occasions where i have been left to run the office and do all the above on my own.

I love it because its challenging and I feel it would be a very rewarding career for me. I don't want to work for an employer. After all why spend your life building someone else's dream when you can make your own

 

[SFD]

Good stuff. The reason I asked was because a lot of people don't realise what is involved in lettings.

Although starting will be more difficult without an office it shouldn't stop you. The most successful letting agent in my town started it from her back bedroom.

If I was in your position I would look at estate agents in the area, approach any which don't offer lettings and see if you can work out a deal on a desk and some display space.

 

[amanda1112]

Thanks SFD that sounds like an idea. I guess people would have to be made aware though that im not in any way affiliated with the estate agents. I dont know if an agent would allow it but its worth asking I guess

 

[amanda1112]

I've also worked in an estate agents for 3 years so have that experience on the other side of the coin if I need it. Not that I want to start selling properties because that's a whole new ball game

 

[MrsPWN]

Pretty much all the rental property around here is just advertised in Spar and places like that. Also a friend rented her house in 2 days by just putting an A4 sign in her front window.

Good luck, sound like you know what you are doing!

 

[SFD]

When I worked in an estate agents we had a mortgage broker at the back of the office and a lettings agency in the basement office.

It's very useful for start-up estate agencies who have limited staffing levels i.e you can work to help each other. If they have to go on a mid-day valuation they can leave you in the office so people can still look round and vice-versa

 

[Faevilangel]

I just did a website for a lettings agent, he works from his home. All his advertising is online and billboards in the town. He meets landlords at a place of their choice..

The website I created for him allows him to upload properties etc so does what rightmove does (and he can do his own uploading to rightmove etc)

He has quite a few clients so is an avenue to pursue but remember you will need to be a company and expect calls at 2am from clients who have lost their keys (or in the case of my client, his tenant put his keys through his own letter box when drunk @ 2am)..

 

[amanda1112]

Yes tenants often lose their keys. I will have the ansaphone switched on after 6pm. I will leave a message on it for out of hours emergencies and numbers to contact Locksmiths will be one of them! alongside Transco etc. However, I will hear all the messages because the phone will be in my living room so I can respond to them if urgent. I'm not getting up at 2am for nobody.

 

[Faevilangel]

Yes tenants often lose their keys. I will have the ansaphone switched on after 6pm. I will leave a message on it for out of hours emergencies and numbers to contact Locksmiths will be one of them! alongside Transco etc. However, I will hear all the messages because the phone will be in my living room so I can respond to them if urgent. I'm not getting up at 2am for nobody.

My client just charges then £150 per callout, then it's the cost of the locksmith etc on top

Not many do ring anymore

 

[ShanLondon]

Hi Amanda,

How are you getting on with this?

I too am interested in starting up my own lettings agency, I have about 5 years experience in renting/letting properties, Tenant issues, Section 21s/8s etc, general maintenance. But I think my people skills are my biggest attribute.

About to order the Southcourt package, I dont need the website as I dont like their style, I have other avenues for this.

If anyone is in the London/West London area that has done this, or is considering doing so. Perhaps we can meet up and discuss.

Thanks

Shan

 

[Faevilangel]

Hi Amanda,

How are you getting on with this?

I too am interested in starting up my own lettings agency, I have about 5 years experience in renting/letting properties, Tenant issues, Section 21s/8s etc, general maintenance. But I think my people skills are my biggest attribute.

About to order the Southcourt package, I dont need the website as I dont like their style, I have other avenues for this.

If anyone is in the London/West London area that has done this, or is considering doing so. Perhaps we can meet up and discuss.

Thanks

Shan

I can see if I can put you in contact with my client and he may be able to help you get started from getting properties and the legal crap you need. He doesn't live in London so would be telephone based but he knows what he is doing.

The website, I can knock one up for you, like my clients. Gives you access to adding, deleting and editing properties. Custom designed also.

Send me a pm and I will get in contact with my client for you.

 

[oldeagleeye]

Hate to put a damper on your enthusiasm Amanda but over the last 2 years virtually every estate agent in the world has turned to the letting's market in order to survive the recession. I am sure you know that but it is easy to brush aside if your working for a company with an established portfolio of over 150 landlords. You might want to go over the books then and see how many new landlords have been signing up on average over the last year.

There really is fierce competition out there and when you look at those repossession figures. Many will be amateur private landlords who have burned their fingers on buy to rent. They won't be back.

The bottom line then is close your eyes and take a snap shot in your mind of how you see the market over the new 3 months. I see it as pretty flat in your business (if you forgive the pun) until after the Election when the spending cuts really bite and who knows what is going to happen to interest rates. I wouldn't even consider going it alone in your type of business until then.

You are perfectly right to be concerned about giving out your home address but don't leave caution at the door there. Your probably too young to remember the Suzy Lamplugh case because it was about 20 years ago but she too was a young letting's/estate agent just started on her own and keen to do business. A call from a possible client one night and she was never seen again.

I am sure you young ladies are more streetwise these days but don't forget when you work alone there will not be anyone in the office that knows where your gone and how long for. Make sure you have the right security regimes in place then when you go it alone.

Now to end on a more cheerful note and something that I learned from my daughter when she was about 22 and in the media business was that meeting clients in a pub/wine bar or cafe can seem like a dating agency meet for a woman and particularly those hotel lobby's. Her solution was to come to an arrangement with a small serviced office provider to rent a desk by the hour.

Today there is an even better more formal solution but it does depend where you live or operate. It's called the Regus Gold Bizcard. This gives you access to over 100 prestigious business lounges in the UK where you can meet customers in style. The conceirge will even escort them to your table. You get free Internet. You have easy access to all the usual office equipment copiers/printer and you can even make professional looking brochures with the lamination and comb machines. Need a brush up afterwards. A lot of business centres have showers etc too. Great if your in London there are over 10 dotted around the City & West End.

How much does all this cost. Just £200 quid a year. That is £4 quid a week and anyone that loves a bargain will love this one.

Every time you visit you can just help yourself to free mineral water and tea & coffee for you and your guests. Visit once a week then and the card actually costs you nothing.
Visit 5 times a week and you will have knocked £20 quid a week off your working refreshments budget.

Good luck then Amanda and welcome to a whole new world.

Robert

 

[ShanLondon]

That's a great reply Robert,

Thanks for sharing that, and £200 is certainly good vfm.

I guess you can look at the lettings market in different ways.

yes, we are in for a surprise when the next election happens, but we need to look historically, there is always a market for letting.

There are a lot of lettings agents - but we like healthy competition

Everyone appreciates good value for money, and a good service. If you can offer both, with passion and drive, you are half way there.

Looking at you history of posting, it looks like I could be refering to you a lot!

Happy holidays

 

[Faevilangel]

My client started was a single person, met people at locations in his town. He had 7 properties with 0 outlay. Most of them came from word of mouth, a few landlords may want a smaller business that can offer a service better than the bigger boys in the market.
It's not an easy market, in our small town we have 18 (that I know of) lettings agents. There is 30k max in the town and maybe another 20k in surrounding villages. The figure of lettings agents doesn't include those in other towns that will offer their service to landlords in our town.
It's not the easiest of markets to get in quickly, but perservierance (can't spell it) is a must. You offer a good service at a decent rate and you're 50% ready

 

[jasonnoguchi]

I used to do the same thing a long time ago and its never an issue as I am usually out viewing or showing properties rather than in the "office".

 

[oldeagleeye]

Not exactly history as such but if I were in your business especially based in London or the South East I would be looking at establishing myself as a re-location specialist with connections in the North and particuarly Scotland. Hopefully I will be semi-retiring there myself next year. The real opportunities however will be for young professionals.

Whoever wins the next election Scotland is pushing for more revenue rasing powers and both Edinburgh & Glasgow are already undergoing major regeneration programes. As with Dublin and Ireland next will be huge incentives to attract more and more big business and what can our young professionals look forward too. Property prices a fraction of London. No students fees for their children and perhaps even best of all no bloody 20 mile traffic jams every morning - noon and night.

In the meantime a pretty 2 bed cottage in Dumfies circa £400 a month. A 2 bed listed mews cottage around £117K. Giving all the attractions I can see a huge market in the North South divide. Certainly worth looking at adding a re-location arm to any lettings business.

Good Luck.

 

[henry2005235]

Amanda? who are you from " VOCATION FOR LOVING" ?
I love her, smart and amazing girl, just so busy that I can`t belive she would be good at SEXING!
SORRY, JUST JOKING
blewing though here, have nice time!

 

[evo1200]

Hi everyone

Can I have your thoughts please on running a letting Agency business from home. Obviously I will check with mortgage company if its ok to do so first. What are your views regarding credibility? I could lease an office costing £10-20k per year or run from home with little overheads to start with? Are there any landlords on here who think that an office situation would be more attractive to them. Does anyone do this from home? All constructive comments welcome and appreciated.

Many thanks
Amanda

I have heard bad things about southcourt (do a search on landlord zone forums). Many agents have started from home but to get new landlords you really need a high street location to give the right impression. Renting a desk in a estate agent would be a cheap option.
I consided southcourt to start with (many years ago) but found it was cheaper to do a couple of arla day courses join a good letting association (i recomend The Guild of residential Landlords, do a google serach) and dont buy any letting software untill you are up to about 30 properties because it isnt needed.

You do need to go on a few courses because there has been a lot of changes to the housing laws such as deposit protection, epc's. Get these wrong and can cost you or your landlord a lot of money.

Also one to think about is if you work from home what will you put on the contracts for a address in england and wales for the tenant to serve notices? (section 48 landlord and tenant act) One reason some landlords use a agent is because the agents address is used which would mean the tenants knowing your home address.

 

[Lorro2]

The world doesn't need any more letting agents. As far as I'm concerned they are just out to screw poor tenants for every last penny they have. I suggest you think of something a bit more worthwhile.

 

[amanda1112]

The world doesn't need any more letting agents. As far as I'm concerned they are just out to screw poor tenants for every last penny they have. I suggest you think of something a bit more worthwhile.

Letting Agents have a duty of care to both landlord and tenant. It's 50/50 to be honest and you can't always please everyone at the same time unfortunately. Agents don't screw tenants for money. I assume you may be talking about a deposit which perhaps wasn't returned which is usually why comments like the above would arise. This is a fairly common occurance if tenants show a lack of respect for landlords properties, therefore leaving the landlord with a house that needs redecorating or new furniture and carpets etc. Why should the landlord pay for such items twice or in most instances many a time? I have seen properties which were in a very presentable condition before let only to be turned upside down by tenants within weeks. On the other hand I have also seen tenants transform a property which was in desperate need of some TLC to a very presentable home within a very short space of time so its swings and roundabouts.

 

[Mikey London]

Im impressed with all the replies its nice to see people trying to help triers.Im am too researching to soon start setting up a letting agency.Any more advice in staring from home really would be helpful.Amanda it seems we are in the same boat lol..Dont give up is my order of the day..Let me know how your getting on.We may have good advice for eachother on our exerpience in achieving... Sgan from London im interested in how your getting on.Ilearning all the time...Thank you ALL

 

[Ash007]

Put bucket loads of boards up.. It costs very little, and is the most cost effecive tool in generating business. Of course if we can be of help ....

Dont forget its a good time to start sales as hips have been scrapped, and it doesnt put people off selling so much.

 

[Wallpaper]

Put bucket loads of boards up.. It costs very little, and is the most cost effecive tool in generating business. Of course if we can be of help ....

Rip a few of your competitions down while you're at it. That costs even less!

http://www.thisislondon.co.uk/news/article-4356788-estate-agent-placed-fake-sold-signs.do

 

[ladyjayne]

Hi Amanda,

I am moving back to England soon from the USA and want to start a letting business, just like you have. It has been some time since you wrote on this blog but I am hoping that you might see this and let me know how successful you have been? Anyone else out there could also reply if you have any experience at starting a letting agency. I am at early stages of deciding between a franchise and using an online company such as Southcourt. Any feedback gratefully received. Thanks.

 

[InternetMarketingPlatinum]

I'd rent a small perhaps shared office space at a business centre. Start as you mean to go on. Working from home is tough.