How Much Can I Earn as an Estate Agent?

 (Click here for Letting Agents)

How Much Can I Earn As an Estate Agent?

As an estate agent you can realistically earn more than £100,000 per year. 

Estate Agents charge a percentage commission on the value of the property they’re selling. In the UK the average commission is around 1% to 2% or even higher in some areas. 

So for a property valued at £200,000, and a commission of 1.5% you will earn £3000. (Note the UK average property price is around £215,000). 

How can an estate agency generate a significant income?

The advantage of running an estate agency is that you can handle several sales simultaneously. By having several properties on your books at once, your role will be to identify buyers for the properties that you’re selling. When you become an estate agent with our Complete Business Package, you’ll be able to use the methods we show you to learn how this is often the most enjoyable part. 

Once a buyer has been found and a price negotiated, you’ll be carrying out some simple admin tasks, while exchange of contracts and completion takes place. The sellers solicitor will pay your commission directly into your bank account. 

Property values vary across the country, so in the examples below we’ve used an average property value of £215,000 and a modest commission rate of 1.5%.

Monthly Income Growth

Starting at a rate of just 1 property per month rising to 4 properties per month ater 12 months, at the average UK property price of £215,000 and a commission of 1.5%, the following examples show how your commission income quickly builds.

Running an estate agency alongside a letting agency is particularly attractive. You’ll be able to leverage your combined skill-set and achieve the win-win where you sell a property to an investor, who then asks you to find a tenant and manage it for him/her. This is a particularly attractive proposition, while providing a useful and professional service to all parties.

 

  • £3225 Per Month After 3 Months
  • £6450 Per Month After 6 Months
  • £9675 Per Month After 12 Months

Remember

If you’re running both a lettings and estate agency business business, the lettings business will feed clients to your estate agency business, and vice versa.  For example, someone who’s thinking of selling may decide to rent due to a change in circumstances.  Someone who’s been renting with you may decide to sell with you or buy one of your properties.  Either way, you’ll be able to help with a professional service, and you benefit financially either way while providing a useful and much needed local service.

Annual Income Growth

At an average house price of £215,000 and commission of 1.5%, your annual income growth can look like this:

Year 1 = £96,750
Year 2 = £129,000
Year 3 = £161,250 and so on…

Subject to market conditions and a little effort, you could well exceed these figures using our methods and techniques. Don’t forget that combining both lettings and estate agency activities into one business and ensuring that your clients on both sides are aware of the services you provide will enable you to offer a complete service.  As you can see, becoming an estate agent can be highly lucrative.

  • £97k Per Year After 1 Year
  • £129k Per Year After 2 Years
  • £161k Per Year After 3 Years

Please Note

  • For simplicity we have ignored additional opportunities that you’ll be able to develop as an agent, such as insurance commissions, and income from various spin-offs which we explain in detail.
  • Management commissions continue to arrive automatically every month, even when you’re on holiday or otherwise engaged.

How Much Can I Earn As a Letting Agent?

 (Click here for Estate Agents)

As a letting agent you can realistically earn more than £100,000 per year.

There are two main services that Letting Agents offer to landlords:

  1. the letting only service (also called tenant find)
  2. the letting & full management service.

Whilst the letting only service provides sizeable fees, the management of tenanted properties is particularly attractive due to the residual commission income.

 

Why is starting a letting agency so financially attractive?

The powerful attraction of property management is that your total monthly income grows with each property added. All tenants pay their rent by standing order directly into your agency bank account. This system is automatic, and you don’t physically collect money at all. Once each payment has reached your account, you deduct your commission and forward the balance to the landlord.

Property rentals vary across the country, so in the examples below we have shown income at 3 different levels. Letting Agency fees also vary, and we have used a moderate commission rate of 12%.

You’re In Control
As you can see, as a Letting and Managing Agent and Estate Agent you can enjoy a superb income from the vibrant property rental and sales market without the financial burden of buying and maintaining the properties yourself.  Just 8 properties under your management will produce more than owning one mortgage-free buy-to-let property – and you will not lose a penny if property prices fall.   And just 4 property sales per month will result in an income far exceeding £100k per year.

You’re in complete control, so you decide how much you wish to earn, part-time or full-time

Monthly Income Growth

At the modest work rate of just one property added each week, the following examples show how your commission income quickly builds

a) on a monthly basis, and
b) on a yearly basis.

Bear in mind that the process is cumulative – existing properties are providing ongoing commission each month while you’re adding new ones. The examples are based on average UK rent of £900 per month, and just 1 property per week.

  • £1296 Per Month After 3 Months
  • £2592 Per Month After 6 Months
  • £5184 Per Month After 12 Months

Remember

If you're running both a lettings and estate agency business business, the lettings business will feed clients to your estate agency business, and vice versa.  For example, someone who’s thinking of selling may decide to rent due to a change in circumstances.  Someone who’s been renting with you may decide to sell with you or buy one of your properties.  Either way, you’ll be able to help with a professional service, and you benefit financially either way while providing a useful and much needed local service.

Annual Income Growth

At average rentals of £900 per month your commission income at end:
Year 1 = £64,800,
Year 2 = £129,600,
Year 3 = £194,400 and so on…

Subject to market conditions and a little effort, you could well exceed these figures using our methods and techniques. Remember that many landlords will give you not just one property, but their entire portfolio to manage.  It is not uncommon these days for a single branch letting agency to manage over 500 properties.

  • £97k Per Year After 1 Year
  • £129k Per Year After 2 Years
  • £161k Per Year After 3 Years

Please Note

 

  • For simplicity we have ignored additional opportunities that you'll be able to develop as an agent, such as insurance commissions, and income from various spin-offs which we explain in detail.
  • Management commissions continue to arrive automatically every month, even when you're on holiday or otherwise engaged.

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