It’s very important in estate agency to do both sales and lettings. Sales bring in large sums of commission however these take longer to come through...
By Gina Piper
When opening an agency, lettings will bring in income much faster and will help with your cash flow forecasts.
A lettings business and management portfolio will also aid your agency when the market gets tough. In early 2009, after the property market crash in the UK, the Association of Residential Lettings Agents (ARLA) did a survey that found that 76 per cent of its members witnessed agents in their local areas switching from residential sales to property lettings in the last six months of 2008.
Although lettings will be a key part of your business you must ensure you have the right staff in place who are fully qualified and also keep up to date on legislation. Lettings law is constantly changing and can have huge ramifications on your business if something goes wrong. 2016 saw changes in Stamp Duty Land Tax (SDLT), right to request energy efficient improvements, Wear and Tear allowance and Universal Credit, as well as of course the ban of tenant fees.
Upon launching your lettings and management business as well as being a member of ARLA, it is also important to join regulatory body NALS (National Approved Lettings Scheme) and have Data Protection (DPA) and Client Money Protection (CMP) insurance policies in place, among others.
Lettings will help to protect your income in harder times and produce income faster upon opening, but it’s very important to get it right - right from the start.
To find out how you can become part of Winkworth contact our New Franchising team
James Campbell | Gina Piper
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