Lettings Agent not VAT registered?

makeyourdaddyproud

vectistim wrote: »

It depends where you are for the viability of non-VAT rated, eg:
Isle of Wight, c 60k dwellings.
Say 15% privately rented: 9,000
50% through agents: 4,500
c. 50 agent offices: 90 per office.
£79,000 / 90 = c.£900 per property per year.

So single office lettings agent on a business park:
Office cost: £15,000
Advertising: £15,000
Staff: £25,000
Net profit: £24,000

Very back of an envelope, but shows it is possible.

Salary £25k? That must only be a one man office. So you've indulged me:

90 properties full let, not let only in your example. Value business warrants quarterly inspections for each property. Let's say 4 inspections per year per property = 360 inspections, that's almost every day. Who's going to answer phones and introduce new properties?

What if problems arise? Let's say there are probs for 20% every month, you will need subcontractors ... They cost money and thus erode you profit. I'm not even going to mention the time needed for managing escrow protected deposits etc.

You will need at least 2 staff and contractors to run a bona fide operation and I'm sorry I don't yet stand corrected.

Nice try though.

makeyourdaddyproud

And the paperwork, printing up contracts, arranging appointments for would be tenants blah blah.

It is impossible to do without premises, not be vat registered, and be a respectable business that can handle the work for even under £100k.

googler

One poster has produced a breakdown of figures, but where's yours?

You can bat around £100k all you like, but how do you arrive at £100k, other than guesswork?

muffmagnet197

Yorkie1 wrote: »

OP, not on topic but have you double checked that the lease of your flat allows you to let it out?

Yes, I am in a block of 6 and the other 5 are all rental properties