Should i start a letting agency

Letting agencies would currently be forgiven for collectively rubbing their hands at the idea of finding great homes for professional renters.

Why not cater to that demand by getting a mini-empire going? The first item of business concerns your location and if you should opt for a physical high street office or go down the route of a virtual one.

The Covid pandemic has accelerated working from home measures, and for the first time, many letting agents found themselves conducting business form their home. Otherwise, the idea of a HSO may might work better as something to aim towards. While the world slowly gets back to normal, some lockdown scenarios may just hang around, such as remote working.

Having a shiny letting agency is all well and good, but think about much you can achieve without one. Most aspects of letting a home can be conducted via emails, phone calls and even video viewings. You could always rent an office space, using it as your base while you build the business up.

That way, you get the presence of an office without the overheads associated with an entire high-street store. Setting up any business requires going through legal processes and ensuring that everything is above board. Perhaps you struck up a particularly good relationship with a portfolio landlord, or maybe you built up contacts in other sectors of the industry, such as referencing companies.

The work of commercial estate agents can also extend to building land, property for conversion to business use and specialised areas such as quarries, amusement parks and forests.

The opportunities for commercial estate agency are vast. Not only does a agent act for the owner who wants to sell or let the property but can act for the buyer or tenant. In addition, agents are employed to agree adjustments to the rental or terms for a new lease for an existing tenant.

Property is a major cost to businesses and they need to make sure that accommodation is of the right size and in a suitable place for their needs. Often a commercial estate agent will be asked to provide advice on all aspects of a client's property needs. Commercial agents need a wide range of business skills to be able to understand the aims and objectives of a client. A thorough knowledge of Planning Law and Landlord and Tenant Law is needed to be able to guide clients successfully.

Business transfer is a specialised branch of estate agency that involves the sale of existing businesses. These cover a wide range of trades including high street shops, post offices, convenience stores, newsagents, public houses, restaurants and hotels. In addition, an agent may be called upon to handle the sale of much bigger businesses in engineering, manufacturing and wholesaling.

Estate agents with a specialism in business transfer will spend a lot of their time visiting clients and seeing what goes on behind the scenes. The job can be very interesting because an agent has the potential to learn something new every day. In this case, the estate agent is responsible for arranging a sale of what could be the client's income and home. The transfer can involve a wide range of factors and the client will need guidance on matters such as taxation, employment law and property law.

A good working relationship can develop and the resulting sale allow an owner to retire or move on to another business. The sale by auction of property is an extension of the role of the estate agent. Many firms of estate agents do not undertake property auctions themselves, but in most regions there are firms who offer this specialised service to those wishing to sell.

For many the lasting impression of the auctioneer will have been formed by a fleeting visit to a general salesroom or a livestock market or from a clip on television. Those who have become property auctioneers have discovered that the challenge of organising and masterminding an auction sale is not only highly rewarding for the auctioneer but also, and more importantly, for the vendor client.

A substantial and steadily increasing number of homes, commercial, industrial and investment lots are routinely sold by auction today. As an auctioneer you will be asked to advise on the disposal of a wide range of property. The first task is to decide whether or not that particular lot is a suitable subject to offer under the gavel and at the same time to explain in detail to the seller the complete process of auction.

This involves not only a detailed knowledge of the market place but also the law procedure and process. Franchising is a popular route for budding estate agents and there are a number of estate agency and lettings franchisors that offer franchise packages to enable you to set up an estate agency affordably and flexibly. Becoming a franchisee means taking fewer risks than going it alone as you're supported by an established brand and have the benefit of leveraging a well-known name, alongside access to marketing materials, training, resources and more.

For more information on the benefits of franchising, click here. Also see: How to start a property lettings franchise. While you don't legally need to have qualifications in the field to start an estate agency, it's recommended and a number of professional estate agents have gained qualifications in their area of specialism. Increasing legislation means that estate agents require a good knowledge of the relevant law. If you're thinking of starting a letting agency, then you must comply with, and keep to date with all legislation relevant to the lettings market and you need to be thorough in the preparation of important documents such as tenancy agreements or inventories.

The National Association of Estate Agents also offers details on relevant qualifications if you want to start an estate agency.

New laws and regulations are often coming into play, especially within the private rented sector, so make sure you stay informed. For instance, in the Autumn Statement the government announced plans to ban letting agents fees for tenants.

While no date has been set for the new law needed to stop tenants being charged, you should keep abreast of the situation. Whilst academic qualifications are always helpful and applicable, personal qualities and abilities are a vital element of starting an estate agency. The ability to deal successfully with all sorts of people while handling someone else's valuable asset is vital. You will also need to be numerate and literate, and, preferably, computer literate.

It's important to highlight that in the property market, problems do arise and usually you will be working under pressure. Consequently, running an estate agency can be very challenging and starting an estate agency is certainly not a good business idea for those who want a predictable or sedentary business. Arguably the most expensive aspect of starting a letting agency is finding the office space — if you don't want to start a letting agency from home.

Most estate agents will pick busy — and, therefore, often expensive — high-street locations. Cast about to determine the average rents of high street properties in the area.

As well as calculating your annual rent, you will need to determine staff pay and your annual running costs. The next biggest cost for starting an estate agency is publicity and marketing. All face-to-face courses organised by Propertymark will be conducted fully in line with the latest Government guidance. If you or someone in your household are experiencing symptoms on the day or prior to the meeting, please inform us so we can cancel your booking and offer your place to our waiting list.

If you have any questions please contact our Courses team on or email [email protected]. Join our waiting list if the face-to-face course date you'd like to attend is fully booked, we will then contact you if a space becomes available. Send us an email with your name, preferred contact details and how many places you would like to [email protected].

Get to grips with tenancy agreements, the definitions they contain and the essential clauses that need to be included. Understanding tenancy deposit legislation is crucial to the successful running of a letting agency.

This course dives into the legislation, processes and how to ensure your agency remains compliant. Wales Act. Download the agreements or check out Letflo's Tenancy Builder tool here.

The Consumer Rights Act made it a legal requirement for letting agents in England and Wales to display details of all fees and charges on websites and in offices.