Starting new letting agency- please help

[st4234f442]

Hi all,

thinkig of starting a letting agency ;) . Just wondering if any one has done it any advice??

I heard about southcourt, and am thinking of purchasing but i don't understand exactly what it is? :confused:


Any Help would be Much Appreciated



Cheeerss

[Nitnat]

I'm also looking into starting up as a letting agent. I have already purchased the Southcourt package and have found it to be very informative. It's an alternative to buying into a franchise. It gives you all the info on starting up as an independant letting agent including a support line.

I've also looked into the associations governing letting agents...any advice on which one to go for? It seems that NAEA and ARLA are the more popular. Is it right that you cannot join these unless you have at least 6-12 months experience? What is it like starting up an independant agency without the accreditation?

Any advice for us newcomers? :confused:

[Paul_f]

It's "independent" not "independant"

You will need to pass the "Technical Award in Residential Lettings & Management" to join either organisation; it's a NVQ level 3 and the current syllabus is ending because of the new 2004 Housing Act changes that are coming in from next year. Places are fully booked for 11 January exam and the final one under the current syllabus will be 29 March (I sit on the exam board!)

Unless the Southcourt package includes free updates it's going to have to be re-written to be any use to letting agents from next year at an extra cost to you all. I doubt the current package will arm you with the legal knowledge that you require.

There is a huge amount of comment on Southcourt on the forum accessible from the search facility and putting in the keyword will bring up posts going back over a year.

If you want some personal one-to-one training I have a website that you can look at. It's www.learnletting.co.uk and my e-mail is learnletting@btinternet.com. You can also access courses and training if you look at the leads on the home page of this site.

[MikeH]

Nitnat
The route many people take when they have purchased our Complete Business Package is to join UKALA. No exam is necessary, you can trade from home, and it provides credibility for your agency. The same applies to NALS which some also join. By all means also join ARLA. You'll find details of all the professional bodies in the Appendix. However it is not essential to join any association at all.

About ARLA
OK now let's put ARLA into proportion. They are not as large as they, or some others, would have us believe. Here are some figures: Of the estimated 12,000 letting agents in the UK only about one third are members of any professional body at all. And of those ARLA has just 1,500 member offices (that's offices not members - some members have multiple offices). In fact I have it on good authority that in the Housing Minister's office, they are hardly known.

About Southcourt
[quote]Unless the Southcourt package includes free updates it's going to have to be re-written to be any use to letting agents from next year at an extra cost to you all. I doubt the current package will arm you with the legal knowledge that you require.[unquote]

Wrong again PaulF. Southcourt's Complete Business Package is right up to date and already includes details of relevant new legislation (tenancy deposits, HMOs, landlord licensing etc...) resulting from the HA2004, as far as is possible at this time.

And YES, we include an ongoing free update facility for our customers. Go to our website http://www.lettings-opportunity.co.uk and click on 'Members area'. This is kept bang up to date with news and developments affecting the letting industry including of course developments relating to the new legislation.

It sounds from PaulF's first paragraph that it is ARLA and NAEA who need to get their asses into gear and update their syllabuses, not Southcourt. Perhaps he could pass on our phone number to them. I'm sure we could work something out.

About PaulF
Well at least he's consistent, even if it is consistently wrong. I would have thought he had learned his lesson misinforming everyone about NALS recently http://www.landlordzone.co.uk/forums/showthread.php?t=818&highlight=nals. Isobel Thomson is still waiting for an apology.

[quote]It's "independent" not "independant"[unquote]

I've just collected all these errors from PaulF's website without really trying:
over sights
infoomred
rentt
a full days training
Whose responsible
dependant on training location

As I said in the title, scary!

About the proposed tenancy deposit rules
The proposed changes are still a long way off, and it is possible that they may not be implemented until 2007. The ODPM has still not made such basic decisions as to whether to appoint one single body, or several, for each of the planned schemes, i.e.insurance, custodial, and ADR (alternative dispute resolution), and the tendering process itself (to receive applications from interested bodies qualified to run the schemes) is not set to finalise until June next year. Information received from my reliable source is that Yvette Cooper's (the Housing Minister) office is more like magic roundabout than a government department, where the staff change so quickly these days that half do not even know their colleagues names. So lets not hold our breath.

When the regulation actually comes into force, many agents (and most landlords) are expected to opt for the 'custodial' scheme, for which no affiliation, memberships or insurance is relevant.

Kind regards everyone
MikeH, Southcourt Property Management
www.southcourtproperty.co.uk
www.lettings-opportunity.co.uk

--

[Paul_f]

Damn! Been getting it all wrong! Don't have a clue what I'm on about! Upset too many people (that's obvious!).

It's just the CEO of NAEA had a look at what I posted about NALS (I think Isobel brought it up at a Board Meeting) and didn't consider my comment was an issue, nor was there anything about which they felt I needed to apologise. Isobel is a delightful lady who has a position to protect, so it's understandable.

Everyone is entitled to an opinion - lucky I don't take offence!

[Deborah Wright]

Hi,

I am considering starting up my own business as a letting agent. I am in full time employment at the moment and have decided after 18 years in sales I would like to do something else.

I am pretty serious about it and would appreciate any advice that anyone could give me on where to go from here.

Should I purchase one of the information and advice packs I have seen on the internet - helpustart etc ?

:confused:

[P.Pilcher]

Read every post on this site concerning tenants, renting and agencies. Note the cockups made. Acquire some books on landlord and tenant law and read carefully. Although I have no knowledge of the Southcourt package, it is advertised on this site and recommended by our Editor. Don't whinge about the cost - it will be worth every penny because apart from giving you a start with a complete set of documents, you also get telephone helpline advice. Try and persuade Paul F on this board to give you some one-to-one training which I understand he does for a fee. To get more hands on experience you could not do better than working for an established lettings/estate agent for a few months or more. Remember that experienced landlords tend only to use agents who are members of the ARLA or similar organisations. Becoming such a member is not easy.
Finally realise that being a successful property agent will take time and it will be quite a while before such a new business starts giving you anything like a realistic income.

P.P.

[choices]

I have bought the Southcourt package and highly reccommend it. Yes, it does take a while to get an income, and there are many rogue agents out there. You will notice that everyone tells tenents to only get signed up with an agent who is registered with ARLA and the others, well, that is the difficult part.

[Daytona]

How much letting experience do you have ?

To give myself some credibility with potential customers I took the NAEA Technical Award in Residential Letting & Property Management (http://www.arla.co.uk/training/tarlpm.htm). As I already had experience as a landlord and more importantly from learning from others experiences on the uk.legal (http://groups.google.co.uk/group/uk.legal?hl=en) and TMF PIP (http://boards.fool.co.uk/Messages.asp?bid=50096) forums (more knowledgable people than on the main LandlordZone forum) I found it easy to pass with a minimum of revision. Exams cost about £25 a time and you have to pass within 18 months of first pass. You may want to subscribe to the Open/Distance Learning kit or take the ARLA courses. Passing this allows you to become a member of ARLA which is better than nothing although imo they discriminate against personal members in favour of corporates - you aren't allowed to use the ARLA logo.

The best book I've found is A Practical Approach to Landlord and Tenant (http://www.amazon.co.uk/exec/obidos/ASIN/0199273758), it's a good reference, and highly readable, but probably more detail than is required for a letting agent.

I have the Southcourt kit and the only useful info. I found was the marketing stuff, although it's not rocket science and the techniques have been mentioned here before. Again, depending upon experience, you may find it more useful. The lettings and management software they provide is just an evaluation copy that's available elsewhere and, is imo, a pile of cack.

[LucyH]

I feel I have to respond to Daytona's comments in defence of Southcourt's Business Package. If he found only part of it useful, perhaps it is because he is already knowledgeable and experienced? Remember the product is aimed primarily at newcomers to the business. Anyway, in August 2005 we had a major rewrite and the result is a vast improvement on the previous. I expect he has an old version.

I have to admit that the property management software which we used to include was quite basic. However that too was replaced in August 2005 and the new system is excellent and much liked. It is a completely personalisable 'starter version' (10 managed properties) intended to provide new agents with the benefit of professional property management software from day 1 of their business.

LucyH
(Southcourt)
----------

[Deborah Wright]

I feel I have to respond to Daytona's comments in defence of Southcourt's Business Package. If he found only part of it useful, perhaps it is because he is already knowledgeable and experienced? Remember the product is aimed primarily at newcomers to the business. Anyway, in August 2005 we had a major rewrite and the result is a vast improvement on the previous. I expect he has an old version.

I have to admit that the property management software which we used to include was quite basic. However that too was replaced in August 2005 and the new system is excellent and much liked. It is a completely personalisable 'starter version' (10 managed properties) intended to provide new agents with the benefit of professional property management software from day 1 of their business.

LucyH
(Southcourt)
----------

Hi Lucy

Thanks for the comments I will take them onboard. Another start up package available is Helpustart. Any input as to the difference between this and Southcourt's package, as it is considerably cheaper at £395.00.

[justaboutsane]

I have never bought Helpustart but I took a look at the website when a guy was on here trying to sell his copy via ebay. If you look at the following thread you will see that I did not feel it was a good product, there was alot of sales hype on it and that always rings alarm bells for me! I was not happy where on the FAQs page he was claiming you would NEVER have cashflow problems... Now ok anyone with business savy would know that this would not be true but I don't think its a very good start when the person is selling something on a "false" promise!

Here is the link for you

http://www.landlordzone.co.uk/forums/showthread.php?t=1700

And good luck in your venture, please let us know how you get on.

[LucyH]

Hi Deborah,
The individual offering Helpustart bought our Southcourt Complete Business Package about 5 years ago. He used our Helpline a couple of times, and several months later began selling his own package. Looking at his website, he claims 4 years experience. At 135 pages, his 'guide' is just over half the size of our main manual. He 'introduces' you to software so it sounds like a demo. Can't see anything about a legal update service. Individuals must draw their own conclusions.

We at Southcourt have not yet examined his product, but would welcome the chance to do so, so if anyone has one, perhaps they could email us a sample of some or all of the guide, the documentation, and the website that he provides.

LucyH
Southcourt Property
(Trading 17 years)

[Yong Yeng]

Before I start, I am not an affiliate of Southcourt but, I have seen both websites from the companies selling their start up packages and have to admit that "Help us start" is much less professional and less appealing with limited info. The Southcourt website however is a lot better & knowledgeable.

I have emailed people who have bought the package and I have had very good feedback from each one. They obviously say it doesnt just happen over night or without a lot of hard work, but they say the package is very good and the helpline in itself is worth the 600 GBP or so that it costs to buy.

I am in the process of studying this business, using this and other forums, I will also be purchasing the Southcourt package very soon, as soon as I get some rent in ;-)

[justaboutsane]

Hi Deborah,
The individual offering Helpustart bought our Southcourt Complete Business Package about 5 years ago. He used our Helpline a couple of times, and several months later began selling his own package. Looking at his website, he claims 4 years experience. At 135 pages, his 'guide' is just over half the size of our main manual. He 'introduces' you to software so it sounds like a demo. Can't see anything about a legal update service. Individuals must draw their own conclusions.

We at Southcourt have not yet examined his product, but would welcome the chance to do so, so if anyone has one, perhaps they could email us a sample of some or all of the guide, the documentation, and the website that he provides.

LucyH
Southcourt Property
(Trading 17 years)

The cheeky Sh***!! Can you not buy a package and go through it to check for things like copyright infringement?? Surely you can have him on something!

My boss does not believe in packages but I think I will take a look at the southcourt package alongside all the other research I am doing! Maybe I can get him to take a look!

[gaspko]

I have an empty small shop premises in Goodmayes Essex, (adjacent to the train station), 6 WKS RENT PAID, 1000 pounds and lots of time and motivation to get a letting agents off the ground.

Worked in a letting agents for 9mths, but this was 12 years ago.

Any ideas on a TURBO BOOST START.

Should I be buying a manual or can I put it all together any other way (well I guess I mean cheaper)

[Daytona]

Anyway, in August 2005 we had a major rewrite and the result is a vast improvement on the previous.
.
.
I have to admit that the property management software which we used to include was quite basic.

Standard public relations platitudes "forget about the past; everything's different now....."

The problem wasn't that the software was basic, it was unecessarily unfriendly and difficult to use. In fact, it was the worst piece of software I've seen in a decade. The fact that Southcourt saw fit to supply it, and that it was only a limited version that could be picked up for free from the authors anyway, indicates a lack of care.

A major reason for buying the package is the software.

Which accounting & management software you supply now ?

[Porgie]

Hi,

Basically, I am very interested in starting my own letting agency. I have been doing lots of research/ reading and really feel that I could do a very good job.

I am stuck on several issues:

1. There seem to be so many different organisations that I could join, and although none are absolutely necessary, I would like to know the main differences.

2. I am trying to decide between the ARLA Technical award and the BTEC Level 3 or 4. Can anyone offer any experience on either?

3. I can move to anywhere and indeed wish to relocate. What research can I do now to really assess the market accurately. I know that I can look at the competition, but what else?

4. Do you have an opinion on whether it is necessary to have a shop front?

5. Have any of you looking to start come across agencies that specifically help you set up, website, training, marketing etc etc.

I know lots of questions, but you know what its like, you do so much reading that you end up going around in circles.

Regards

Porgie

[cillitbanger]

try looking here
http://www.lettings-opportunity.co.uk/
hth

[Wonderwoman]

Suggest you get work experience or get some feel for the trade rather than like me who very
STUPIDLY BOUGHT SOUTHCOURTS bumph

[Colincbayley]

Suggest you get work experience or get some feel for the trade rather than like me who very
STUPIDLY BOUGHT SOUTHCOURTS bumph

Did you know that SOUTHCOURTS can be re-arranged to US SHORT CUTS !!

[jeffrey]

Did you know that SOUTHCOURTS can be re-arranged to US SHORT CUTS !!

...or that it has been the subject of disgruntled posts for aeons?

[joan.scully]

You can also try Letting4Success, they do a course with manual starting from £149.00.

[Wrighty]

Hi Porgie,

Have you had any luck starting your new business as of yet? I myself am starting one soon, maybe you could PM me about anything and we could swap expirences to date !!

Thanks,

Luke.

[johnboy]

Shop front is a good idea but pricey when starting out. Check out independent estate agents that dont do letting and see if you can rent a cornor in their office and use a bit of their window space.

Also check out The Guild of Residential Landlords www.allforlandlords.com for both landlords and agents they are really really helpfull allways at the other end of the phone. We have just become members of ARLA but we are still staying with the Guild.

[LucyH]

Suggest you get work experience or get some feel for the trade rather than like me who very
STUPIDLY BOUGHT SOUTHCOURTS bumph

The Southcourt business package has a high success rate for people who can be bothered to read the manual, but that was too much effort in your case, as was proven here:

specific post-
http://www.landlordzone.co.uk/forums/showpost.php?p=18720&postcount=16

whole thread-
http://www.landlordzone.co.uk/forums/showthread.php?t=2797

[Colincbayley]

Hi Porgie,

There's lots of good books and advice out there. Its also important to have a good software package as well. Look at the software section of the suppliers on RLA or landlordzone. I've found that Properite Landlord Software is good and has had good reviews - you can find out more at http://www.properite.co.uk

Cheers

simhar

Simhar,

Don't you think it is sneaky to recommend your own website in a post by saying 'I've found.....' and at the same time delete the link that you normally post on your signature.
This makes it look like a recommendation rather than the truth, which is a sales pitch.

Sneaky if you ask me.

[sharemaster2]

Simhar,

Don't you think it is sneaky to recommend your own website in a post by saying 'I've found.....' and at the same time delete the link that you normally post on your signature.
This makes it look like a recommendation rather than the truth, which is a sales pitch.

Sneaky if you ask me.


Some people do not realise that people on this site are not so gullible. Well nice try there but take the sales pitc to other sites.

[Rooftile]

Hi,

Basically, I am very interested in starting my own letting agency. I have been doing lots of research/ reading and really feel that I could do a very good job.

I am stuck on several issues:

1. There seem to be so many different organisations that I could join, and although none are absolutely necessary, I would like to know the main differences.

2. I am trying to decide between the ARLA Technical award and the BTEC Level 3 or 4. Can anyone offer any experience on either?

3. I can move to anywhere and indeed wish to relocate. What research can I do now to really assess the market accurately. I know that I can look at the competition, but what else?

4. Do you have an opinion on whether it is necessary to have a shop front?

5. Have any of you looking to start come across agencies that specifically help you set up, website, training, marketing etc etc.

I know lots of questions, but you know what its like, you do so much reading that you end up going around in circles.

Regards

Porgie

Nothing beats experience at the coal face. Coursework before hand is just impossible to take in, as it will have no correlation to job experience. However, when you're doing the job the coursework (eg NAEA Tech award open learning) makes much more sense and falls into place in your day to day work.

By the sound of things you're best bet will be to pursue a franchise such as Belvoir, Martin & Co, Ashton Burkinshaw, etc.

Best of luck

[sean conway]

Hi,

I have purchaced the Southourt package and I found it to be totally out dated and overpriced! In todays recession market you can get almost all the information free from the internet and it is oftern more applicable today than the information found in the manual. :mad:

The support had some value but certainly not almost £600 worth...

My advice is to save your money and just purchace the bits you will need like advertising, website and general start-up costs.

If you are looking for a package don't go for southcourt!...you will be disapointed do your reseach and go for other packages/services!

[Paul_f]

You can get all the information you need on the internet.

If you need a day's training together with a host of documents, terms of business, tenancy agreement etc. for £411.25 (inc VAT) I come to you and the only additional costs are my travelling and possible overnight accommodation. What's more I talk to you and answer questions, and you have a free helpline for at least 12 months at no extra cost.

[PinkPurpleApple]

Hi everyone

I run a letting agency from home, I manage 85 properties and want to venture in to sales and get an office in town. Is anyone aware of the typical commission structures for staff?

I would really appreciate your advice!
Thanks in advance

[Paul_f]

Where are you located and how many agents are in competition? It depends on your location as to how staff are remunerated.

[Mrs Jones]

Estate Agents are regulated in a way that Letting Agents are not - you might need to look into this side of things too.

[Poppy35]

for the commission process to be fair also i would suggest an office commission based on a higher % to the more experienced staff and reduced for the lower ranks! gives incentives to even the secretary to pull their own weight if they get rewarded for it!

[abs]

Using other agents application forms, terms of business and tenancy agreements. I have made my own. Who could check them and insure they are water tight?

[cymro123]

Best to check them yourself. If you don't know what you are looking for, you are probably in the wrong business.

[Paul_f]

Using other agents application forms, terms of business and tenancy agreements. I have made my own. Who could check them and insure they are water tight? If you don't know the difference between 'insure' and 'ensure' then clauses in your tenancy agreements might have a very strange meaning!

[johnboy]

I have seen Letting Agents T&C's offered for sale on Clickdocs. Try a google search.

[Snorkerz]

Hi Abs, I agree with Cymro123 - do you have a background in property letting? How au-fait are you with Landlord & Tenant law? I ask this in relation to your comment "I was not aware of the situation regarding the law" in an earlier post.

If the answers are no and not-very then I suggest you would be doing yourself a dis-service to try and offer your services in this field. It's all well and good collecting £1000 a year for banking the rent but once problems arise the LL is going to expect you to know what to do - and if you don't you could cause yourself a whole load of hassle, as well as possible financial 'problems'.

Just think about it.

[jeffrey]

abs: there are now 897 threads on this Forum alone. The other 896 tell you what problems/pitfalls you (as a novice) will/may find by blundering-in, entirely untutored. Are you still sure that it's such a good idea? Better: learn first, under supervision, and only then strike-out alone.

[edwardmlyte]

This question is serious, but a long way off actually happening. So just humour me please. I realise I'm probably underqualified (and definitely don't have enough money to my name), but this is why I'm asking here.
I'm a young professional currently working in insurance. I have no knowledge of housing laws (except for what I've read up on in order to settle multiple disputes with landlords over the past few years), I have a BSc (Hons) in Computer Science, and I've only worked professionally for 3 years. In the distant future I see myself moving into the letting agency business. Having been let down by so many, I'd love to try and start up a business I could be proud of. One providing excellent service to both landlords and tenants.
What sort of steps do I need to do to go about this? Yes I realise I'd need to probably save a lot of money in order to invest in such a business, but are there any qualifications or courses that are required (or heavily recommended). Should I be trying to start a part time law degree? How does one go about attracting prospective landlords to advertise with them? Should I really be a landlord first, and thus have to buy a house to rent out in order to move into the letting agency business.
This is kind of a pipe dream, but not one that is completely unrealistic.

[edwardmlyte]

Found this:
http://www.landlordzone.co.uk/starting_agency.htm
I'll peruse that for now. But any helpful advice would be greatly appreciated.

[Paul_f]

You need a great deal of knowledge and experience which takes a long time to acquire.
You will need a very deep pocket for at least a year.
Professional Indemnity Insurance will be expensive. (don't go wothout it)
You will have competitors who know what they are doing and are well established.
You probably think you can do it better but without the in-depth knowledge you can quickly find it's a minefield.
Small agents without the wherewithal generally struggle and many go bust within the first 2 to 3 years.
You need to offer your clients sufficient money protection which you won't be able to do until you have a qualification and join ARLA.
You could contact a decent franchise such as Belvoir Lettings which will set you back about £22,000 initially but will give you invaluable support and guidance and is well worth the investment.

On the positive side:-
If successful you will make a decent living

[mind the gap]

On the positive side:-
If successful you will make a decent living[/list]
Judging by the fees charged by most 'successful' agents, that is arguably the understatement of the century.

[Susan Curran]

Hi Edward,

It is a big deal to start any new business up, but with all of the current legislation, it would be difficult to start a letting agency on your own. (Not impossible though if it is your dream) However if you are really interested in the idea of starting up on your own, then i would suggest looking at buying a lettings franchise. That way, you will have the proven business model, the back up and all of the training as part of that deal. I work for SureLet Franchise and we have a great proven business model that speaks for it's self, and we also help from the start. We do have a franchise website, if you want to have a look and then give me a call to chat further. But if you don't think that is the route for you, then all the best for your future.

[Poppy35]

Susan

You might want to remove the name of your franchise before one of the mods comes along and does it. You dont get free advertising on this site I am afraid.

[Susan Curran]

Hi Thanks for the advice, i did not realise that i was breaking any rules, as someone else had already mentioned a different company. can you tell me how to change it, as i can't find an edit button. I wouldn't want to rock the baot! Cheers SUe

[Snorkerz]

Hi Thanks for the advice, i did not realise that i was breaking any rules, as someone else had already mentioned a different company. can you tell me how to change it, as i can't find an edit button. I wouldn't want to rock the baot! Cheers SUeYou only get about half an hour to edit posts - so that chance has gone. Don't worry, the mods will eventually change it. Now we've got you here though... why don't you have a little look through some of the other posts to see if you can offer any advice from an agents PoV?

[edwardmlyte]

Thanks all. Yeah I thought a franchise would be the best way for me to get started. I will look into some and about how to get started. I know I need a lot of money to get started so if I'm going to do this seriously I'll need to look into loans etc. Thank you for the frank advice.

[Jill Smith]

Hi. I would not recommend a franchise - we looked into it and you have to pour in a lot of money and you will never be independent. You will forever be paying the franchise commissions and are bound by their methods of operating, for example if the franchise decides on a certain marketing strategy, you have to go along with it and pay the costs. We started along the franchise route and then realised that we could do it on our own. We set up one year ago and it's going great. We have a shop front which obviously incurs more overheads, but if you start up from home, you need very little investment. We went on several courses run by Lettings4Success and they were excellent. I would look into that route before you spend all your savings on a franchise. Many of them say the start up fee is £18,000- £25,000, but that is just the franchise fee, we eventually found out that we would need at least £80,000 to invest. Starting up on our own cost us around £15,000 (and most of that was used on setting up a High Street office).

In answer to Paul_f above:
1.You need a great deal of knowledge and experience which takes a long time to acquire - NOT TRUE. Get some training!
2.You will need a very deep pocket for at least a year- NOT TRUE. If you have a laptop and a phone you are practically set up
3.Professional Indemnity Insurance will be expensive. (don't go wothout it) - Yes, this is important but it cost us around £300/year
4.You will have competitors who know what they are doing and are well established - TRUE, but they are very complacent as a rule which allows you to shine.
5.You probably think you can do it better but without the in-depth knowledge you can quickly find it's a minefield - See answer 1 above. If you buy a training manual, you also get telephone support for a year.
6.Small agents without the wherewithal generally struggle and many go bust within the first 2 to 3 years - only true if they haven't done their homework
7.You need to offer your clients sufficient money protection which you won't be able to do until you have a qualification and join ARLA - this doesn't even make sense. There is no obligation to join ARLA - landlords don't really care as long as you do a good job. We became members of UKALA, but no-one ever asks.
8.You could contact a decent franchise such as Belvoir Lettings which will set you back about £22,000 initially but will give you invaluable support and guidance and is well worth the investment - if you join a franchise it will cost considerably more than this - try adding another £60k. We know first hand because we looked into it before deciding to go independent.

On the positive side:-
9.If successful you will make a decent living - yes you will!

Good luck and go for it!

[Lawcruncher]

In answer to Paul_f above: etc

No doubt the points you make are valid. The important word missing though is "flair". Some people know almost intuitively what it takes to be successful. Most people have to learn. It is all very well saying "go on a course" but if the course is intensive most people will retain very little of it unless they immediately put it all into practice so that it sinks in. The best advice to anyone wanting to start a business has to be to go and work for someone in that business and learn it on the job. You can then go on a course which will make a lot more sense, explain why you have been doing things the way you do, highlight where you have been going wrong and fill in any gaps in your knowledge. When you start up any business there is a lot to learn as you go along such as VAT, PAYE, employees' right, employers' obligations and so on; you can get professional advice on all of that. You do not want to be adding to it by having to learn the nature of the business; your accountant may be a wizard at number crunching, but he will not be able to advise you how to run a guest house to keep your customers happy.

[Paul_f]

Oh dear Jill. I've been around an awfully long time to be able to prove that people setting up without knowing what they are doing will soon be found out. You can't 'buy' experience from a book and no book will prepare you for the hundreds of scenarios that you will inevitably encounter. A few will get away with it though.

By the way why are there 300 plus franchise offices such as Belvoir and Martin & Co if they are so expensive? Their initial training courses last 3 weeks and that's before you even start finding landlords.

[Jill Smith]

Yes, lawcruncher gives good advice. If you go and work for an established agent first, you will gain experience and learn the trade. However, jobs are hard to come by at the moment and we are not youngsters. Fortunately both of us had had experience in lettings (having been landlords/tenants) at various times and had learned from the bad experience we had had from agents.
In answer to Paul_f, how can you say franchises are not expensive? We looked into it very intensively, and got to the point where we were about to sign up with one - they had shown us all the figures and I still have it in black and white - we would need £80,000 before we even opened. They wanted us to take out a bank loan, which was when we backed out. We weren't prepared to go into debt.
We then found out about the companies that do manuals (Lettings4Success and Lettings Opportunity; Lettings4Success also do courses). The manuals are very comprehensive; they have packages with websites or lettings software and the companies involved give support and advice when you need it. You have experienced agents on the end of a phone if you run into problems or come up against something tricky. As far as advice and experience it's the same as being in a franchise apart from the cost. The franchise will give you support and advice and training, but they won't find you landlords. We spoke to several franchisees when we were doing our research and many of them were still paying off bank loans and were struggling to find landlords.

That's the most difficult thing, finding landlords. But when you get your first few and show that you are providing a good service they will recommend you. Once you get your boards up and advertising out there, your name will become known and the business will build.

[Jill Smith]

Just to add, also that just because an agent has joined a franchise, it doesn't make them good agents. We have come across several tenants who have rented through franchises and they have shown us inventories which are just a list of contents, they have AST's which haven't been signed by either landlord or agent and one tenant told me that she had emailed the agent and got a response which said "I won't be able to respond to your query for 5 working days". What if she had a boiler problem or a flood, or some other major crisis? That was a well-known franchise branch! People like that give our business a bad name!

[Lawcruncher]

If jobs are hard to come by in letting agencies is that not an indication that it is not a good time to set up on your own?

[Lawcruncher]

inventories which are just a list of contents

Actually is that not what an inventory is?

[jeffrey]

The contents page is, at least.

[cribsandpads.co.uk]

Hello Folks

Wanted advice as to what tools are available for newly set up letting agents to build a landlord database.
Have tried and still pursuing canvassing, checking on gumtree.

Looking for your guidance.

[jrsteeve]

There isn't really a secret to it, just be good at what you do, the referrals from current clients pays much bigger dividends than canvassing. To be honest though your company name may be a bit off putting to some.

[mind the gap]

Hello Folks

Wanted advice as to what tools are available for newly set up letting agents to build a landlord database.
Have tried and still pursuing canvassing, checking on gumtree.

Looking for your guidance.

For the database (in other words, a list of the LLs whose properties you manage):

Pencil.
Paper.
Ruler.
Calculator, or the ability to do simple arithmetic.

For the LLs themselves : word of mouth.

[decker81]

Hi Ed - I just posted this on another forum in recent days. Are you London based?


Regards
Declan



Hi all,


I'm looking for a partner to start a residential letting agency in London. I have one going in Dublin at present -(my website - name blocked) which I run via the internet, and I am seeking to start something similar here in London. I want to find a partner who can assist me to do the same here in London. Must have a real interest in property and I would want to know what exactly it is you could bring to the table in terms of your particular skills/attributes that would help make any joint venture successful. It would be important that you would have the ability to constantly generate new ideas and ways of generating business. If you think you have something to offer then I'd like to hear from you.


Cheers
Declan

[Jill Smith]

Actually is that not what an inventory is?

In basic terms, yes, but a good agent would include a 'Schedule of Condition', so that both parties have a clear record of the condition, not only of the contents, but also the fabric of the property, eg carpets, walls, doors, light fittings, etc.
If an inventory just says "Fridge, cooker, table... Etc", the tenants could easily replace a lovely new fridge for an old faulty one and take the new one with them. You also need to protect the tenants by noting any faults at the start of the tenancy.
We take photos of everything and both landlord and tenant get a copy of the photo CD. If you give good service, you keep your landlords and get recommended. It's about building a good name, not cutting corners just to make money.

[Lawcruncher]

In basic terms, yes, but a good agent would include a 'Schedule of Condition' etc

That is fine so long as the agreement is properly drafted. Unfortunately that is not always the case. Ideally you have two separate documents:

1. A schedule of condition (i.e. that deals only with the fabric of the property and not any contents) and a statement in the agreement that the tenant is not under any obligation to return the property in any better condition than that recorded in the schedule.

2. A inventory of contents and an obligation in the agreement on the part of the tenant to return the property with the contents, replacing any items that are lost or damaged, fair wear and tear excepted. The inventory should record any damage to any of the contents.

Whilst there is no reason why a schedule of condition and inventory of contents should not be the same document, the two different functions should still be reflected in the agreement.

[Dougie]

Hard work and determination is absolute key. you also need to know what you are talking about, so get yourself on some arla courses. there are also various start up packages available to assist with your aspirations.

[nk1970]

Ed,

How are you getting on with your new agency? I am in a similar position and would be interested in your findings. I cannot decide on which PMS to use. I am pretty sure I will go for a web based system, but which one, I don't know yet. Also, what are your thoughts on advertising? I am pretty amazed by the costs and attitude of Rightmove, they may be the biggest, but I don't think I will be using them!

Cheers

[vision.z]

Hi Ed - I just posted this on another forum in recent days. Are you London based?


Regards
Declan



Hi all,


I'm looking for a partner to start a residential letting agency in London. I have one going in Dublin at present -(my website - name blocked) which I run via the internet, and I am seeking to start something similar here in London. I want to find a partner who can assist me to do the same here in London. Must have a real interest in property and I would want to know what exactly it is you could bring to the table in terms of your particular skills/attributes that would help make any joint venture successful. It would be important that you would have the ability to constantly generate new ideas and ways of generating business. If you think you have something to offer then I'd like to hear from you.


Cheers
Declan

I would interested in this business proposal as I have been looking a partner too, I have great ideas that I would like to discuss with you if you still looking for one.
I am new in this website so I have no idea how you can contact me but I guess you know so please send me a replay
Cheers Carlos

[oaktree]

The thought of a new agent opening a business and trying to run it while thumbing through a lettings manual sends shivers up my spine. Have we not got a bad enough name with the few rogues that we have in the industry? To me thats no different to putting a learner driver in a car with a book on how to drive. As has been said, you cannot teach experience.

To the OP, try and find a job with a local agent; offer them a work experience deal if you have the money to back you up for a few months. Get yourself on a training course as well to learn the basics; the NFOPP Technical Award is a good start as well as some of the ARLA courses.

[Moderator1]

Several largely similar questions on separate threads have been merged into this thread (hence the repetitive nature of answers).

[jeffrey]

The thought of a new agent opening a business and trying to run it while thumbing through a lettings manual sends shivers up my spine. Have we not got a bad enough name with the few rogues that we have in the industry?
I tend to agree. So many LZ threads reveal the often shocking lack of knowledge and professionalism on the part of Letting Agents. Mind the gap is particularly scathing but much evidence does seem to support her views.

[David Grice]

I have just joined and am looking for all your great advice. I'm thinking of starting a new Letting agency in my home town but I have no experience what so ever in this field but have always wanted to do it. I am at the very early stage and currently carrying out Market Research.
I bill be running this from home to start off with to keep costs down and am trying to do lots of Internet research on Letting agencies at the moment.

Any help, advice, tips and more would be hugely welcomed.

Thanks and I look forward to reading your responses. :o

[kittikat]

The only thing that i can say is Good Luck and get very friendly with a very good housing specialist solicitor. Welcome to the Board, looking forward to your input.

Hopefully someone else will give you more constructive advice very soon.

[Scrungy]

I have just joined and am looking for all your great advice. I'm thinking of starting a new Letting agency in my home town but I have no experience what so ever in this field but have always wanted to do it. I am at the very early stage and currently carrying out Market Research.
I bill be running this from home to start off with to keep costs down and am trying to do lots of Internet research on Letting agencies at the moment.

Any help, advice, tips and more would be hugely welcomed.

Thanks and I look forward to reading your responses. :o


I would advise you to get a job as a negotiator or a Saturday job doing viewings and other odd jobs for a local letting agency.
If you can also get involved in property management, that would be good too.
This way, you'll have some understanding of what is required in the business and what the issues are because you'll have direct experience and while someone else takes the risk.

You also need to learn about human nature, about dealing with people, how to read them, how to know when people are lying to you, about body language, etc.

There''s so many people who have had your idea already for you to be successful without doing some work and without actually learning the business.
After all, why should any landlord or tenant come to you, an upstart with just a smile to offer, as opposed to those agents who have been in business for years, know what they are doing and who may have a good reputation and likely, very deep knowledge of the area & the market?

If you think you can do this just on the internet, you are mistaken. Working from home is rarely successful.
You need to have a physical presence as you are dealing with people & they need a place to meet you.

You need to be able to differentiate in business when there's several choices - how are you going to do that if you haven't worked in the field and don't know why agent A does something in one way while agent B does it another way. There are lots of things to consider & you need to take the time to learn what they all are and experience them.

Once you've done a year or so of negotiating/viewings, you can then understand more and consider going it alone.

Its not as easy as you are implying it is and you may be in for quite a hard time if you pursue you idea.

I hope you make the right choices.

[David Grice]

To Kittikat and Scruncy, I would like to thank you for your reply and comments.

Scruncy, you're right in what you said about finding part time employment with a Letting Agency where I will gain experience. I had the same thought and I have applied for one I saw last week, I’m waiting to hear back from them.

This isn't something I’m taking lightly and am committed to work hard and face all the hurdles. Both my partner and I run a very successful Network Marketing business already and have done for the past three years so we have the people skills.
Where we lack, is the experience in the Letting filed. We have rented property from agents over many years and often shocked by the lack of service and professionalism we see, and simply think how we could have done a better job! Anyone can do anything, as long as they work hard, learn their filed, give it time and know the numbers. And this is the general advice that comes from some of the best business minds in the world.

Thank you for your kind thoughts and comments; it will all help towards our research and planning. Thank you.

[iffy]

Hi guys, glad I found this forum now just hoping that members can help me.

Just recently I started dealing with my fathers properties, six properties in total from his personal office. After having dealt with them, I actually enjoyed the whole management thing. I actually enjoyed the management so much that I would like to take a career up in property management. Now I’m aware that there many posts asking similar questions and for this I apologise but I really need a push in the right direction so that I can get busy and do my research.
So far I know that I need to know/need the following:


Back office system
Legal frame work for: Terms and conditions (tenants and landlords), mandates
Accounts with letting sites
Website for the business
Various aspects of property letting such as; inventory, meter readings, informing relevant authorities
Become a member of an accredited body such as ARLA
Go on a course for letting agents
Advertising


I’m sorry if the above list is not coherent and a bit over the place, I could really benefit with direction. I have dished out my CV to various letting agencies but the way things are just now, I’m rather pessimistic on getting a job within a letting agency. Any help is much appreciated.

[Poppy35]

I have been a letting agent for over 16 years and the only advice I would give (apart from "are you mad?"!) is to really push for a job within an agency.

Having dealt with 6 properties and easily dealing with them is very diferent to running an agency day in day out, dealing with landlords, tenants, contractors, overseas tax, Inland Revenue and possibly staff.

Nothing counts more than experience regardless of what you will learn on training courses. Dont get me wrong, its good to take courses and get qualifications but experience and word of mouth count for far more. I went on a training course 14 yrs ago and have not been on one since but gain my knowledge through experience and of course this site!

There are many posts on here from would be agents who are struggling to get clients and we are in a good time at the moment for letting properties. I worked for other firms for 7 years before setting up on my own. It was a struggle and you really need to have a portfolio of about 100 properties before you make any sort of money (this is based on having a office, rent etc).

maybe you could keep your current job and gain some part time work in an agency? You need also to work out how you will go about getting landlords onto your books? advertising along is not going to get you clients, they need to know you, gain your trust and be confident in the service you can offer them. You are not going to get this if you open up and no-one knows who you are (unless of course you open up, offer full management at 80% below the local rate which lots of agents do but they come and go and most are closed within the year as they under estimate the outgoings of running a business).

I wish you all the best in your endeavours.

[jrsteeve]

I'm with Poppy on this, i'd look for employment within the industry first before going it alone. I'd worked for large agents for 6 years, set up on my own in 2008 working primarily from home and am currently in the process of opening a high street office. I'm also studying building surveying part time so my business can do more, and obviously increase the revenue streams. I've been building the business slowly since 2008, avoiding taking on too much too soon - the main cause of earlier failure - and am now ready to move things forward.

Look for jobs with the nationals if possible - Countrywide, LSL etc, they usually offer reasonable training and give you an insight into what you'll be competing against.

[quarterday]

definitely go and work for an agency, even if only for six months or so. I entirely agree that you ought to go for a prestigious/ multiple outfit. It's not unknown for folk to get a scanner at home and build a library of precedent documentation! Oh, and take a subscription to the Estate's Gazette. It's a big world out there!

[iffy]

Ok looks like I jumped in to that one. But nevertheless I am eager and want to go in to this job. However I have one area covered in this field. Advertisement. My father deals with wealthy people and has been doing so for 30 years. Such clients trust him and have already asked about the property business that they can see developing. Any tips on getting employment in this field?

[MrJohnnyB]

Ok looks like I jumped in to that one. But nevertheless I am eager and want to go in to this job. However I have one area covered in this field. Advertisement. My father deals with wealthy people and has been doing so for 30 years. Such clients trust him and have already asked about the property business that they can see developing. Any tips on getting employment in this field?

You could get qualified! That would help. If you were to become a chartered surveyor as I am doing you would end up with a qualification that is recognised world wide and will take you to very interesting locations. You would also be able to give valuations for lending purposes, and generally advise clients more accurately. There are of course other methods of getting qualified in a profession, ultimately the property industry is tightening its belt and jobs are scarce.

Furthermore, your dad sounds relatively well connected, does he not have any chums in the business?!

[LS Lettings]

Hi Iffy,

Property management is an enjoyable line with work that is fairly recession proof in its nature. Should you wish to choose this line of work you would find it most beneficial to work for another agent first (as others have stated); however there are a few pros and cons to this route. Firstly by working for another agency you will gain much knowledge of the industry and be privy to many ‘secrets’ you may not already know whilst at the same time being paid a wage, the major drawback is that you will be very likely locked in to an agreement (employment contract) with the agency that states you cannot set up business within a set radius or/and set time period, usually 6 to 12 months. You can find many companies out there selling the paperwork needed and help and guidelines to success for a small price. Either way it’s your choice but hope that my post helps.

[Snorkerz]

LSL (post 7)
Please remove your web address from your signature strip.

This site is invaluable for desperate people in need of help with their problems. For it to run, money is needed and so the owners CHARGE for advertising.

[Edron Property Solutions]

Hi. I would not recommend a franchise - we looked into it and you have to pour in a lot of money and you will never be independent. You will forever be paying the franchise commissions and are bound by their methods of operating, for example if the franchise decides on a certain marketing strategy, you have to go along with it and pay the costs. We started along the franchise route and then realised that we could do it on our own. We set up one year ago and it's going great. We have a shop front which obviously incurs more overheads, but if you start up from home, you need very little investment. We went on several courses run by Lettings4Success and they were excellent. I would look into that route before you spend all your savings on a franchise. Many of them say the start up fee is £18,000- £25,000, but that is just the franchise fee, we eventually found out that we would need at least £80,000 to invest. Starting up on our own cost us around £15,000 (and most of that was used on setting up a High Street office).

In answer to Paul_f above:
1.You need a great deal of knowledge and experience which takes a long time to acquire - NOT TRUE. Get some training!
2.You will need a very deep pocket for at least a year- NOT TRUE. If you have a laptop and a phone you are practically set up
3.Professional Indemnity Insurance will be expensive. (don't go wothout it) - Yes, this is important but it cost us around £300/year
4.You will have competitors who know what they are doing and are well established - TRUE, but they are very complacent as a rule which allows you to shine.
5.You probably think you can do it better but without the in-depth knowledge you can quickly find it's a minefield - See answer 1 above. If you buy a training manual, you also get telephone support for a year.
6.Small agents without the wherewithal generally struggle and many go bust within the first 2 to 3 years - only true if they haven't done their homework
7.You need to offer your clients sufficient money protection which you won't be able to do until you have a qualification and join ARLA - this doesn't even make sense. There is no obligation to join ARLA - landlords don't really care as long as you do a good job. We became members of UKALA, but no-one ever asks.
8.You could contact a decent franchise such as Belvoir Lettings which will set you back about £22,000 initially but will give you invaluable support and guidance and is well worth the investment - if you join a franchise it will cost considerably more than this - try adding another £60k. We know first hand because we looked into it before deciding to go independent.

On the positive side:-
9.If successful you will make a decent living - yes you will!

Good luck and go for it!

Hi Jill,
What a refreshing and positive post!
I'm in the process of starting my own property letting business and it's took 6 pages on this forum to find someone that's had something positive to say to encourage people. I've had experience from being a landlord and also unfortunately had some experience from being a tenant and trust me, Joe Bloggs on the street can do a better job than what some extremely well-known agencies do, or rather don't do!
Kind regards
Louise

[Paul_f]

I'm in the process of starting my own property letting business and it's took 6 pages on this forum to find someone that's had something positive to say to encourage people. I've had experience from being a landlord and also unfortunately had some experience from being a tenant and trust me, Joe Bloggs on the street can do a better job than what some extremely well-known agencies do, or rather don't do!
Kind regards
LouiseOkay so you are going to muddle along much like the rest of the profession that doesn't think training or knowledge is important. I agree that many High Street agents are extremely deficient in what they do and it's mainly down to bad habits that need attention i.e. training.

Every agent that I have gone into who has booked training with me has without fail quite a few problems, but have so far got away with it so to speak, but these are agents who have recognised the need for training.

I usually ask three fairly standard questions at the beginning of each session which I would expect a letting agent to know as a matter of course. Nobody has managed more than one correct answer.

[mind the gap]

...many High Street agents are extremely deficient in what they do

I agree. And virtually all backstreet ones as well.


You will need a very deep pocket for at least a year- NOT TRUE. If you have a laptop and a phone you are practically set up

This says it all. The degree to which many letting agents can stuff up with other people's money, security and homes defies belief. If they were risking their own money/property in the venture, perhaps they would be less cavalier in their attitude.

Even people who start off all bright-eyed and bushy tailed seem to slump into sloppiness and incompetence before long. Perhaps the fundamental problem is the perception that if you wear a suit to work and drive a moderately flashy car, that makes you 'a professional', like a lawyer or a bank manager. It doesn't.

Go on Paul, tell us your three questions!

I have five and they would be :

1. Give me the name of two local emergency plumbers who will not rip the tenant off
2. Explain how you would go about protecting a tenant's deposit and what you would put in the prescribed information.
3. Who will run your agency when you are ill or on holiday?
4.Notice has been served and has expired but the T has not moved out. New Ts are all lined up. When can the decorator go in to make the property presentable?
5.Who do you work for?
(a) the LL
(b) the T
(c) yourself

[jjlandlord]

1. Give me the name of two local emergency plumbers who will not rip the tenant off

The correct answer being: "Nice try!" ;)

[oaktree]

I agree. And virtually all backstreet ones as well.

This says it all. The degree to which many letting agents can stuff up with other people's money, security and homes defies belief. If they were risking their own money/property in the venture, perhaps they would be less cavalier in their attitude.

Even people who start off all bright-eyed and bushy tailed seem to slump into sloppiness and incompetence before long. Perhaps the fundamental problem is the perception that if you wear a suit to work and drive a moderately flashy car, that makes you 'a professional', like a lawyer or a bank manager. It doesn't.

Its not very often I agree with everything MTG puts in a post but I do with this one. Most agents who get it wrong do so thorough lack of training and knowledge, which mostly comes from experience. It always makes me smile when people come along, 'knowing' they can do better, with equally poor knowledge of skills.

I've been doing this for way over 20 years now, and its a rare day that I go home without having learnt something new about this industry. The very thought that it could all be learnt from a study course, or that a laptop and telephone is all that is required to run an agency, would be almost laughable if it wasn't so serious.