5 reasons to start a lettings/estate agency business

5 reasons to start a lettings/estate agency business

There are not many businesses that tick as many boxes as a lettings/estate agency business.


Here are our top five reasons to consider starting a lettings/estate agency:

1. Demand

With any commercial venture, it's vital to understand the demand before you create a business to service it.

As far as the U.K. property market is concerned, this is obvious. We are a small island with lots of people wanting to live here, and we're not building enough houses to meet the demand.  Add the increasing birth rate and people living longer, and the fact that every single person in this country wants a roof over their head, then you have sustained demand for property.

Only today, a new report from Rightmove suggested that the price of property coming to market has rebounded to an all-time high, fuelled by a surprise majority-government.

Experts, including the Royal Institute of Chartered Surveyors, have predicted that property prices will rise 25% over the next five years.

Meanwhile, the Private Rented Sector (PRS) is set to grow as well. The Office for National Statistics estimates the UK population will grow from a current 64.8 million to 67.2 million by 2020; with national housing predictions suggesting the current number of households will increase by 1,327,000 households in the next five years. 

The PRS is set to become a yet more dominant tenure, creating a need to provide approximately one million new households out of this total. If this were to happen, by 2020, over 24% of all households across the UK would be in the PRS with London and the South East expected to see the most dramatic tenure changes.

Housing Minister Brandon Lewis, in his speech to the Real Estate Forum, also encouraged further investment in the PRS, citing its importance in solving the U.K.'s housing crisis.

2. Scale-ability

A lettings business is infinitely scale-able as you add more properites under management and more staff to manage them, or diversify into other areas.

3.  Economically robust

Whatever the economy is doing, the lettings/estate agency industry remains robust.  If property prices are rising, more people move into rented accommodation.  If property prices are falling, more people buy property, so whatever the property cycle is doing, there is always opportunity for agents.

4.  Low-risk

Because of the huge and increasing demand for rented accommodation as documented above, this business is relatively low risk.

It is also worth noting that franchises are regarded as significantly lower risk to banks than an independent business; the likelihood of achieving long-term success with a franchise is far greater than any other type of business, hence their popularity.  The reason for this stems from:

> Proven product or service        

> Proven ability to deliver                

> Systemised reporting and monitoring        

> Franchisors business support and input.

> Supportive network already in place.

5.  Proven exit strategy

When you come to sell your business, you know that there is a proven exit strategy in that you can sell your franchise to someone else, or often back to the franchisor.

When you look at any business, it can be compared to an iceburg.

Joining Belvoir as a franchisee means that we will support you with all the "back office" issues and training you need to be successful and also help you avoid the many pitfalls of starting a new enterprise.  Combined with the right attitude, drive, and commitment, this can "kick start" a business and accelerate it towards profitability.

 

If you are thinking of starting a lettings or estate agency business, then you should talk to Belvoir! first.


Just last Friday, Belvoir! won "Franchise of the Year" at the prestigious Sunday Times Letting Agency Awards 2015 for the fourth year running, so you know you are in safe hands with us.

The Judges commented:

"Belvoir is perpetually successful in this category and this is partly due to the continual investment in its audit team, which helps keep standards consistently high.

This business operates on a very open basis with the franchisees and the directors make decisions on a fair and moral basis rather than merely for commercial gain. The concept behind the Belvoir franchise offering is straightforward: highly trained local experts are put into offices and given exceptional support from Central Office. 

The support and training they receive enables owners to grow successful businesses with valuable long-term assets".

Belvoir! is an award-winning estate and lettings agency with 160 successful offices around the U.K.  If you would like to talk about being our next success story, please call us on 01476 570000 or email us on franchising@belvoirlettings.com

You can also follow us on twitter and discover more on our YouTube channel.

 

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