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Financial Rewards

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

Modern Estate Agents offer a range of packages that include both fixed-price packages and commission based fees, and sometimes a hybrid of the two.  

Modern Letting Agents usually charge a percentage of the rent, for either a Rent-Only or Full Management service. 

Below we show these scenarios in more detail, separately for both lettings and sales, and how the fees can multiply when you’re running a letting or estate agency. 

Estate Agent Business Income

The advantage of running an estate agency is that you can handle several sales simultaneously, each of which can be worth £thousands.  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 Business, Professional or Platinum Package, you’ll be able to use the methods we show you to get in a position to start generating this income.

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%.

Estate Agent Income Growth

Monthly Income

Starting at a rate of just 1 property per month rising to 3 properties per month after 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.  On top of this you can add your fixed fee income for marketing properties. 

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. 

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

Annual Income

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. 

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

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.

Letting Agent Business Income

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

The first is the rent-only service (also called tenant find)

The second is the full management service.

Whilst the rent-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 any 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%.

Letting Agent Income Growth

Monthly Income

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

Annual Income

At average rentals of £900 per month your commission income at end of:
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.

£65k Per Year After 1 Year
£130k Per Year After 2 Years
£194k Per Year After 3 Years

Additional Revenue Streams Available to Letting and Estate Agents

  • Financial advisor referral fees
  • Photography fees
  • Property letting fees
  • Utility referral fees
  • Tradesman commissions
  • Inventory fees
  • Tenants and landlords insurance commissions
  • Property inspection fees
  • Landlord tenants renewal fees
  • Rent Guarantee Insurance Commissions
“After researching the available start-up options I decided the Southcourt Package was by far the best choice due to their successful track record. When we started up it helped us massively, and is definitely part of our success. It is affordable, highly professional and innovative and allowed us to gain new clients quickly and effectively.”

Don't take our word for it, read what our clients have to say

After researching the available start-up options I decided the Southcourt Package was by far the best choice due to their successful track record. When we started up it helped us massively, and is definitely part of our success. It is affordable, highly professional and innovative and allowed us to gain new clients quickly and effectively.
John Paul
Managing Director, The Castedene Group
"The initial pack we purchased was absolutely priceless and enabled us to build a two office business from nothing (soon to be 3) but without your wonderful support and knowledge, not to mention our brilliant new website courtesy of you, then I am sure we wouldn’t have had either the confidence or the know how to move the business forward the way it has. The website was easy to build with you guys, you listened to everything we wanted and we had a seemless transition…"
Jay Coleman
Angelwoods Residential Sales and Lettings
"We have been with Southcourt from when our business started. They have not only a very good service but more of a, as we see it, a valuable partner. Their products are good value for money and advice is also money saving in this competitive market. We would recommend Southcourt to all but never will, as we want to be the only ones that has this good service!!"
Irfaan
Citylocations Tooting, London
"The Southcourt Business Package was brilliant! It basically allowed me to learn everything I needed to know to sign up landlords, run my agency from home to fit in with my family and lifestyle then gradually grow the business at the speed I wanted. I also used their support service fairly often at the start and I have to say they really helped me get going – as Mike will testify to!"
Venessa Alfonja
VA Property Consultants
"I would like to say thank you to all at Southcourt Property for the excellent and professional service we have received since purchasing our business package and website. As a practising paralegal I don’t make key decisions lightly, and it was only after careful research that I chose Southcourt, as they clearly had more to offer both in terms of experience and customer satisfaction than similar products on the market. As my business develops it is reassuring to know that your support is just a phone call or email away."
Chris Blake
AT Property Lettings
"After embarking upon research in to opening an Estate Agency to complement our legal practice, I had the good fortune to discover Southcourt Property. Not only was I to obtain excellent advice on setting up an Agency but also to create a most professional and easily maintainable website at a fraction of the price quoted by traditional web designers. Steve and his team made the whole process so straightforward and operating the website in conjunction with their associated cloud software delivered efficiency to the whole processs. I would recommend Southcourt to anyone wishing to open an Agency. Their manual is a bible to be relied on and proved really educational for me as a beginner"
Diarmuid McKeown
McKeowns Solicitors

Read all our reviews on here:  Reviews and Testimonials

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