How to Set Up and Run a Letting Agency and Property Management Business The Lettings Business, Starting a Lettings Business

The Letting Agency and Property Management Business - Earnings Illustrations

from Southcourt Property Management  Est: 1989 Letting Agents Training since 1997

How Much Can I Realistically Earn? line

The powerful attraction of Property Management is that your total monthly income grows with each property added. All tenants pay their rent by standing order directly into your Letting Agency Business bank account. This system is automatic, and you don't physically collect money at all. Once each payment has reached your account, you deduct your commission and forward the balance to the landlord.

Property rentals vary across the country, so in these examples we have shown income at 3 different levels. Letting Agency fees also vary, and we have used a moderate commission rate of 12%.

At the modest work rate of just one property added each week, the following examples show how your income quickly builds a) on a monthly basis, and b) on a yearly basis. Bear in mind that the process is cumulative - existing properties are providing ongoing commission each month while you're adding new ones:


Monthly Income Growth

The Letting Agency Business, Starting a Lettings Business Starting a Lettings Agency Business
Therefore at average rentals of £650pm your monthly income after 12 months = £3,900

Annual Income Growth

Earnings in The Lettings BusinessLetting Agency Business - Earnings Examples
At average rentals of £650pm your income at end: Year 1 = £46,800, Year 2 = £93,600, Year 3 = £140,400...

Subject to market conditions and a little effort, you could well exceed these figures using our methods and techniques. Remember that many landlords will give you not just one, but several properties.** It is not uncommon these days for a single branch letting agency to manage up to 500 properties.

You should also bear in mind that:

  • For simplicity we have ignored additional fees such as charges to tenants, 'letting only' fees, inventory charges, renewal fees, insurance commission, and income from various spin-offs which we explain in detail

  • Management commissions continue to arrive automatically every month, even when you're on holiday or otherwise engaged.

You're in complete control, so you decide how much you wish to earn
 

As you can see, as a Letting and Managing Agent you can enjoy a superb recurring income from the vibrant property rental market without the financial burden of buying and maintaining the properties yourself. Just 6 properties under your management will produce more than owning one mortgage-free property -- and you will not lose a penny if property prices fall!

** Recent figures from Paragon Mortgages indicate that their average landlord now owns more than 10 properties. This means that a letting & managing agent could require as little as 5 landlord clients to build to a management portfolio of 50 properties.


"Once again many thanks for your support at Southcourt. Our first year has gone very smoothly, in fact we have been surprised at how easy the business is to run. We knew things were going well, but were very surprised after working out our figures for the year to discover that our net profit is £65,000! We only have 25 on management, but have done a lot of lettings."

Mr T Osgood       More testimonials...




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