Start and Run a Residential Letting Agency (Small Business Starters) PDF
Preview Start and Run a Residential Letting Agency (Small Business Starters)
START AND RUN A Residential Letting Agency Visit our How To website at www.howto.co.uk At www.howto.co.uk you can engage in conversation with our authors – all of whom have ‘been there and done that’ in their specialist fields. You can get access to special offers and additional content but most importantly you will be able to engage with, and become a part of, a wide and growing community of people just like yourself. At www.howto.co.uk you’ll be able to talk and share tips with people who have similar interests and are facing similar challenges in their lives. People who, just like you, have the desire to change their lives for the better – be it through moving to a new country, starting a new business, growing their own vegetables, or writing a novel. Atwww.howto.co.uk you’ll find the support and encouragement you need to help make your aspirations a reality. You can go direct to www.start-and-run-a-residential-letting-agency.co.uk which is part of the main How To site. How To Books strives to present authentic, inspiring, practical information in their books. Now, when you buy a title from How To Books, you get even more than just words on a page. START AND RUN A Residential Letting Agency Steve Martin howtobooks smallbusinessstart-ups Published by How To Content, A division of How To Books Ltd, Spring Hill House, Spring Hill Road Begbroke, Oxford OX5 1RX Tel: (01865) 375794. Fax: (01865) 379162 [email protected] www.howtobooks.co.uk How To Books greatly reduce the carbon footprint of their books by sourcing their typesetting and printing in the UK. All rights reserved. No part of this work may be reproduced or stored in an information retrieval system (other than for purposes of review) without the express permission of the publisher in writing. The right of Steve Martin to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and 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
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