Start and Run a Residential Letting Agency (Small Business Starters)

241 Pages·2010·1.2 MB·English

by  Steve Martin

START AND RUN A
Residential Letting Agency
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START AND RUN A
Residential
Letting Agency
Steve Martin
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Patents Act 1988.

© 2010 Steve Martin

First published in electronic form 2010

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

ISBN 978 1 84803 382 5

Produced for How To Books by Deer Park Productions, Tavistock
Typeset by Kestrel Data, Exeter

NOTE: The material contained in this book is set out in good faith for general
guidance and no liability can be accepted for loss or expense incurred as a
result of relying in particular circumstances on statements made in the book.
The laws and regulations are complex and liable to change, and readers should
check the current position with the relevant authoritie before making
personal arrangements.
Contents
Acknowledgements x
Preface xi
1 Background to the Property Letting and Management
Business 1
A brief history of letting and renting in Britain 1
The current market and future trends 1
The role of a letting agent 2
The competition 4
2 Where Do I Start? 6
Assessing your suitability 6
Gaining relevant experience and knowledge 9
Researching the market 11
Choosing an area 13
Choosing a specific location and premises 13
The local market and rental levels 19
Assessing the competition 19
Tips for choosing a franchisor 22
Useful resources 24
Pre-set up summary and checklist 25
3 Setting Up the Business 26
The business plan 26
Calculating start-up and operating costs 27
Business banking 29
Financing the business 31
Choosing a name 32
Company formation and legal structure 33
Insurance 35
Corporate identity and branding 37
Promotional material, stationery and business documents 38
Launching a website 42
Leasing or buying premises 50
Office equipment, furniture and fittings 51
Agency database software 52
v
START AND RUN A RESIDENTIAL LETTING AGENCY
Services to offer 54
Setting your fee levels 56
Professional accreditation 57
Useful resources 58
Business set-up checklist 58
4 Marketing 60
Marketing overview 60
The marketing plan 60
Who are my customers? 61
Where are my customers? 62
Where to advertise on the internet 62
Press advertising 63
Public relations 64
Word of mouth 67
Networking 67
Leaflets and flyers 68
To Let boards 70
Cold calling 70
Promotions and special offer ideas 71
Direct mail 72
Paper directories 72
Radio 73
Vehicle livery 73
Pre-launch marketing 73
The big day – opening for business 74
Marketing budget and measuring results 75
Useful resources 76
Marketing checklist 77
5 Business Finance 78
Finance overview 78
Operating costs 78
Setting and monitoring sales targets 80
Predicted turnover 81
Cash flow 81
Profit and loss 83
VAT 83
Income tax, National Insurance and corporation tax 83
Payroll 84
Other financial obligations 85
Keeping a record 85
Bookkeeping and accounts 86
Systems and software 87
vi
CONTENTS
Useful contacts 88
Finance checklist 88
6 Staffing your Business 90
Assessing your requirements 90
Finding applicants 93
The interview 94
Choosing the right candidate 97
Your responsibilities as an employer 98
Paperwork 99
Salary, commission and bonus levels 100
Minimum wage levels 101
Management skills 101
Staff assessments 102
Staff training 103
Subcontracting 104
Useful contacts 105
Staffing checklist 105
7 Customer Service and Exceeding the Customer’s Expectations 106
Customer service is everything! 106
Telephone and email – the first point of contact 107
Communication and feedback 108
Dealing with complaints 108
Building a relationship with the landlord 110
The internal customer 112
Testing customer service levels 112
Training staff to adopt the customer care approach 113
Customer service checklist 113
8 Business Legal Requirements 114
Health and Safety at Work etc Act 1974 114
The Accommodation Agencies Act 1953 115
The Trade Descriptions Act 1968 116
The Data Protection Act 1998 117
Money Laundering Regulations 2007 118
Discrimination 120
Useful resources 121
9 Complying with the Latest Letting Regulations and
Legislation 122
Housing Acts 122
Safety regulations 123
vii
START AND RUN A RESIDENTIAL LETTING AGENCY
Tenancy deposits 128
Energy performance certificate (EPC) 129
Houses in multiple occupation (HMO) 130
Stamp duty land tax (SDLT) 132
Unfair Terms in Consumer Contracts Regulations 1999
(amended 2001) 132
Changes in legislation 133
Useful resources 134
Complying with the regulations checklist 135
10 The Letting Process 136
Registering landlord, property and applicant details 136
Property valuations and appraisals 138
Consents to let the property 140
Advice on presentation of the property 141
The sales pitch 141
Information to record 142
Photographs 144
Creating eye-catching adverts for properties 145
Storing keys to the property 146
Service agreements 146
Property details form 148
Verifying ownership of the property 148
Registering potential applicants’ details 149
Viewings 150
Safety and security 154
Processing applications 156
Inventory and schedule of condition 159
Tenancy agreements and types of tenancy 162
Executing the tenancy agreement 167
Other documents 168
Check in process 170
Post check in procedures 171
Serving notice and notice periods 173
Grounds for possession 176
Useful resources 182
11 The Property Management Process 184
Property management overview 184
Rent collection 185
Dealing with late payments 186
Property inspections 187
Maintenance and repairs 189
Qualifying suitable contractors 192
viii
CONTENTS
Planning for maintenance work 194
Major works 195
Paying contractors 196
Tenancy renewals 196
Rental increases 197
Check out process 198
Claims for dilapidations 199
Returning the deposit 201
Dealing with problem tenants and other issues 202
Useful resources 203
12 Client Accounting Procedures 204
Handling clients’ money 204
Administration fees 205
Holding fees and deposits 205
Rent collection and agency fee deductions 206
Contractor payments 206
Overseas landlords’ tax payments 206
Useful resources 207
13 Additional Income Sources 208
Insurance 209
Mortgage referrals 209
Utilities 210
Sales referrals 210
Contractors 211
Advantages of passive income 212
Useful resources 212
14 The Next Step – Expanding and Diversifying 213
Buying a competitor or portfolio 214
A second branch 216
Franchising 217
Sales/Estate agency 218
Commercial property agent 220
Block management 221
Overseas sales 222
Mortgages and financial advice 223
Useful resources 224
Index 226
ix