Financial Rewards

Many agents these days earn more than £100k per year.

See the examples below for how this is achieved.

How Much Can Letting and Estate Agents Earn?

Many of our clients have become financially independent after following our Business Package.  

If you follow the training and guidance in our Business Package, it’s quite possible to set up a Letting or Estate Agency and become financially independent. 

Continue reading to find out how you can achieve a satisfying income in either lettings, sales or both.  

You can start full time or part time, from home or office, or alongside your current employment.

Letting Agent Income

There are two main services that Letting Agents offer to property owners:

The first is the rent-only service (also called “tenant find”) – this is where you find a tenant, and the landlord manages the property afterwards

The second is the full management service – this is where you continue to manage the property after you’ve found a tenant

The rent-only service provides sizeable fees of around 2 or 3 weeks rent for each tenancy you create.  However, the management of tenanted properties is particularly attractive due to the residual commission income.  Your total residual monthly income grows with each property added.  So in year 2, you’re still earning from year 1 without much extra work, and so on. 

Tenants pay their rent directly into your agency bank account automatically, so you don’t physically collect any money.  Once each payment has reached your account, you deduct your commission and forward the balance to the landlord. 

Management fees vary, but we have used the UK average commission of 12% of the rent. 

Letting Agent Income Growth

Monthly

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

a) on a monthly basis, and
b) on an annual basis.

Bear in mind that the process is cumulative.  This means that existing properties are providing ongoing commission each month, while you’re adding new ones. 

The examples are based on average UK rent of £1000 per month*.

[* UK Office for National Statistics]

£1,440 Per Month After 3 Months
£2,880 Per Month After 6 Months
£5,760 Per Month After 12 Months

Annual

At average rentals of £1000 per month your commission income at end of:
Year 1 = £69,120
Year 2 = £144,000
Year 3 = £216,000 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. 

Indeed, we still support agencies who started with Southcourt many years ago, still using our software services, who far exceed these figures. 

£69k Per Year After 1 Year
£144k Per Year After 2 Years
£216k Per Year After 3 Years

Additional Revenue Streams Available to Letting Agents

The above fees do not include additional streams of income available to letting agents such as:

Estate Agent Income (sales)

Most estate agents work on commissions of 1% to 1.5% of the sale price of a property.  This means that for an average UK property valued at £275k, you’ll receive around £4125 when sold.

Selling just 2 properties per month will generate an income of around £8250 per month using average UK prices.

If you’re in London or the South East, where property prices are much higher, your income would be significantly more.

The advantage of running an estate agency is that you can handle several sales simultaneously, each of which can be worth thousands in commission. 

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 you’ll be able to use the processes and methods that we show you to start generating income.

Once a price has been agreed, you’ll be carrying out some straightforward admin tasks.  This happens while the solicitors are working on the contracts and searches, and while surveys are taking place.  On the day of completion, 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 £275,000 and a typical commission rate of 1.5%

Estate Agent Income Growth

Monthly Income

Starting at a modest and relatively easy rate of just 1 property per month, rising to 2 properties per month after a year, you can see how your income can build.   This is at the average UK property price of £275,000 and an average commission of 1.5%.  The examples here 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!

£4150 Per Month After 3 Months
£6225 Per Month After 6 Months
£8250 Per Month After 12 Months

Annual Income

At an average house price of £275,000 and commission of 1.5%, your annual income growth can look like this:

Year 1 = £103,125
Year 2 = £206,250
Year 3 = £309,375 and so on…

Subject to market conditions and a little effort, you could well exceed these figures using our methods and techniques.  

If you operate in London or the South East, where prices are much higher, it’s possible to exceed these figures.

£104k Per Year After 1 Year
£212k Per Year After 2 Years
£319k Per Year After 3 Years

Why is this the ideal business?

As well as being able to run the business full or part-time, from home or an office, if you’re running both a lettings and estate agency business business, the lettings business can feed clients to your estate agency business, and vice versa. 

For example, someone who’s thinking of selling their house, may decide to rent due to a change in circumstances.  A person who’s been renting with you might decide to sell with you or buy one of your properties.  Either way, you’ll be able to help with a competent & professional service, and you will benefit financially either way.

This is one of the few businesses in the UK where it’s truly recession proof.  Even in times of COVID pandemic or a deep recession, your lettings commissions continue to be paid, and property sales continue. 

During the COVID-19 pandemic, many of our clients took great advantage of our 360 Virtual Tour software which is included, along with YouTube Tours.  This allowed them to continue to rent and sell properties during lockdown – with no physical viewings at all!

It’s really the best of both worlds.

BUSINESS

Package

Full training, systems, processes and operations, with all the required support and guidance to get you started.

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COMPLETE

Package

Everything required to get your agency started and growing!  Save £ thousands!

WEBSITE & SOFTWARE

Package

A range of 12 professionally designed websites, integrated with powerful agency software, plus features to help you grow.

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