How to Start a Letting Agency on a shoestring budget
We are often asked about the costs involved in starting a letting agency and establishing a healthy fee and commission income stream.
Contrary to the belief of many, you need very little capital to get started, and as soon as you have let a few properties the business will begin to finance itself. In other words further expenditure can be met from income.
You will of course need the Southcourt Business Package and Property Website, the very affordable cost of which you will find on this website. Below are the further costs for which you should budget.
We will leave you to work out each actual prices, but consider the following:
Start up costs depend on how and where you will be operating. Assuming you will be running your business from existing business premises or from home, and using an existing telephone line and pc, start up and early expenses should be roughly as follows -
A pack of A4 paper, a digital camera, clip board, desk diary, the cost of printing a supply of letterheads (although many people do it themselves on their pc and printer). You would of course also have miscellaneous minor running costs such as petrol and telephone bills.
We show you how to launch your business with our unique Boost Start Action Plan. This consists of a combination of several very cost-effective methods designed to have both landlords and tenants coming onto your books quickly, and includes finding local landlords who have properties available to let, or are about to have, without you advertising at all. It's all about boxing clever, and thinking outside the box, so to speak.
We also explain how to effectively take advantage of free advertising both locally and on the internet.
Once you have a few deals under your belt, you can finance the following from fee and commission income:
10 To Let boards approx £150 (they last for ages). The special deal we have arranged on letting agency software means you can use the software to manage your first several properties completely FREE of charge. The only organisation that you must join is the Property Redress Scheme (PRS) the fee for which is £95.
We provide an extended FREE hosting period on our website packages, thus reducing costs for your first year. then it's only £10 a month. Your business should be building nicely by the end of year one. Remember the average fee for a let only is half a months rent, say £350. The average total fees plus management commission to the agent for managing one average property is approx £1200 per year, so the rewards are considerable.
If you have any questions, or want to become a letting agent, please do not hesitate to contact us. We will be pleased to provide clarification on any points, and help in any way we can. And remember, the sooner you get started, the sooner you will be earning.