Established as Letting Agents in 1989
Training Letting Agents since 1997
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in association with
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How Much Can I Realistically Earn?  |
There are two main services that Letting Agents offer to landlords - the letting only service, and the letting & property management service. Property management is really the 'cream' side of our business due to the residual income, so lets look at this for a moment:
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
| Month |
Properties |
£500.00 pcm |
£700.00 pcm |
£900.00 pcm |
| 1 |
4 |
£240.00 |
£336.00 |
£432.00 |
| 2 |
8 |
£480.00 |
£672.00 |
£864.00 |
| 3 |
12 |
£720.00 |
£1,008.00 |
£1,296.00 |
| 4 |
16 |
£960.00 |
£1,344.00 |
£1,728.00 |
| 5 |
20 |
£1,200.00 |
£1,680.00 |
£2,160.00 |
| 6 |
24 |
£1,440.00 |
£2,016.00 |
£2,592.00 |
| 7 |
28 |
£1,680.00 |
£2,352.00 |
£3,024.00 |
| 8 |
32 |
£1,920.00 |
£2,688.00 |
£3,456.00 |
| 9 |
36 |
£2,160.00 |
£3,024.00 |
£3,888.00 |
| 10 |
40 |
£2,400.00 |
£3,360.00 |
£4,320.00 |
| 11 |
45 |
£2,700.00 |
£3,780.00 |
£4,860.00 |
| 12 |
50 |
£3,000.00 |
£4,200.00 |
£5,400.00 |
| Therefore at average rentals of £700 per month your monthly income after 12 months = £4,200 | | |
Annual Income Growth
| Year |
Properties |
£500.00 pcm |
£700.00 pcm |
£900.00 pcm |
| 1 |
50 |
£36,000.00 pa |
£50,400.00 pa |
£64,800.00 pa |
| 2 |
100 |
£72,000.00 pa |
£100,800.00 pa |
£129,600.00 pa |
| 3 |
150 |
£108,000.00 pa |
£151,200.00 pa |
£194,400.00 pa |
| 4 |
200 |
£144,000.00 pa |
£201,600.00 pa |
£259,200.00 pa |
| 5 |
250 |
£180,000.00 pa |
£252,000.00 pa |
£324,000.00 pa |
| At average rentals of £700 per month your income at end: Year 1 = £50,400, Year 2 = £100,800, Year 3 = £151,200 etc... |
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.
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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!
** A recent survey by ARLA (2009) found that the average landlord now owns 8 properties. This means that a new letting & managing agent will need to acquire on average just 6 landlord clients to build an agency management portfolio of 48 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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“Just to let you know we are now up and running and have been live since 1/3/07. And from following advice in the manual within 48 hours our first portfolio of 5 flats and 1 house from one landlord was secured! Many thanks.” R Wesson
“...ps: I am taking a residential and management course via Manchester university and the training and advice you are giving is par with the university training,
which is proof to me that your business package has been worth every penny. Many thanks.” Mr P Phillips
“Well, we seem to be up and running a little earlier than expected so now is the time to request a User ID for the above software. We have found the Southcourt Pack absolutely invaluable, a quality product at a very affordable price.” Mrs S Bailey
“I would like to take this opportunity to thank you for my business package and the assistance I have received since. I am extremely impressed with both..” Mr David Tickner
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