Starting a Letting Agency

[ClaireHT]

Hi there,

I have been thinking for a little while about starting up a letting agency run from my home for my local area (Preston). I am currently a landlady and have found it very easy to rent out my 2 houses, the last property was rented within 24 hours and would like to help other people achieve this and feel from my research that it would be a viable business.

I'm really on here looking for some advice on starting this business, what legalities do I need to know about? What are the typical starting up costs of your average letting agency? What is the charge from a letting agent and how is this managed?

Also wondering if there is anyone in the North West who would be willing to let me shadow them for a few weeks to discover the ins and outs of the business?

Any other advice will be welcomed,

Thanks
Claire

 

[gordano]

Hi Claire

It is a competetive market, if you start up with high overheads (e.g. prime location shop) it is very risky.

You could start with a low cost approach in your business plan, then expand to offices/shop as you grow your client base.

There are national recognised memberships for letting agent professionals such as ARLA, NAEA. Membership would give you advice/guidelines and credibility.

Then there are free resources such as Gumtree (although they may now charge for agents and for keeping your ad near the top of the list)

Another free ad site is for agents and landlords is simple2rent ... this is one of mine.

The landlord deposit now needs to be held by a third party - DPS provide a free service for this.

You will also need a local network such as people who provide EPCs, cleaning, Gas Safety checks, etc ... assuming you are going to manage the properties.

The costs to start from a home office are really quite small. Key is the regulation, understanding the law regarding tenant contracts, etc.

 

[HLSSolutions]

Hi Claire

I used to work for a software company that was the market leader for lettings software. Having been responsible for all of the training and then subsequently support I have dealt with all sizes of property management companies.

There is a lot to learn and be aware of for lettings, especially on the accounts and legal side, and it differs a lot from managing your own properties.

The best advice I could give would be to get a part time job or work experience in a local property management agency to learn all aspects of the job before setting up on your own. Alternatively if you are keen to get stuck into it straight away there are a number of franchises out there, who will give you some training and provide you with backup and support with any problems you have. There are quite a lot of up front costs and you will also need to pay them a percentage of your earnings, however you will have a known brand and formula that could help build the business quickly and successfully.

Good luck with it all.

Ian

 

[tiggerthompson]

Hi Claire!

firstly I wish you all the best with your new venture, its a great thing to do! I ran my own business for 3 years and enjoyed every minute of it, funnily enough I have also worked in the Estate Agency business and also considered running my own lettings agency!

It is a very competitive market but can be very lucrative. if you want any advice in terms of starting a business then I may be able to help, drop me and email and we can chat

Chris