Does anyone have experience with.....

Miss_Karen

a lettings franchise or franchising in general?

I've been looking for a new career and have looked at many options over the past few months. I've managed to find a lettings franchise that i think offers good value, the trouble is i have no experience in either. The company in question seem decent and will train me fully but they suggest i need to be letting at least one property per month to cover my expenses, 2 properties earn a small income, etc. It doesn't appear too difficult on paper but i'm worried that if an offer appears too good, it generally is.

Can anyone help with their experiences, thoughts or ideas on franchising or letting property? thank you. MK

InsideInsurance

Have a look on this part of the site and the small business one, the topic of franchises in general is brought up moderately often and the pro/con of them mentioned often.

The key is to look hard at what you are getting for your money and what would it cost you to get these outside of a franchise. Similarly but reversed, what revenue streams are you potentially losing with a franchise that you may make if you go it alone.

As an example of the later, I know our letting agent gets billed £X from their maintenance company and £Y from their referencing company which they pass on "as is" to the Landlord and the Tenant as appropriate. At year end though they get a nice cheque from both of these companies for the referrals, normally as a percentage of the bills. If the Franchise provides these services are you loosing out on the rebate or getting a lesser amount?

As a serial letter, due to moving house a lot, I would struggle to name a single letting company other than my current one which is very localised and I only remember it because I am constantly chasing them to deal with problems. I dont go to a specific letting company but go to Right Move or PrimeLocation etc and search for new properties on there and so I really wouldnt put any weight on the brand element unlike, for example, if you were looking at a McDonalds franchise etc.

makeyourdaddyproud

Miss_Karen wrote: »

a lettings franchise or franchising in general?

I've been looking for a new career and have looked at many options over the past few months. I've managed to find a lettings franchise that i think offers good value, the trouble is i have no experience in either. The company in question seem decent and will train me fully but they suggest i need to be letting at least one property per month to cover my expenses, 2 properties earn a small income, etc. It doesn't appear too difficult on paper but i'm worried that if an offer appears too good, it generally is.

Can anyone help with their experiences, thoughts or ideas on franchising or letting property? thank you. MK

Please tell me you are joking, right? Try 20 properties to break even.

Cost arguments that will most certainly erode 2-property commission:

1. How are you going to advertise business?
2. Escorted showings.
3. Fuel.
4. Office costs.
5. Professional Registration.
6. Indemnity insurance.

Most nascent letting agents will go to the wall after 1)

dotdash79

I know someone who set up there own letting agents in Leeds and it took him 8 months to start to turn a profit and he had been in the game for almost 10 years working for another agency.

It's cut throat, sharks chasing sharks.

Murphybear

Miss_Karen wrote: »

a lettings franchise or franchising in general?

I've been looking for a new career and have looked at many options over the past few months. I've managed to find a lettings franchise that i think offers good value, the trouble is i have no experience in either. The company in question seem decent and will train me fully but they suggest i need to be letting at least one property per month to cover my expenses, 2 properties earn a small income, etc. It doesn't appear too difficult on paper but i'm worried that if an offer appears too good, it generally is.

Can anyone help with their experiences, thoughts or ideas on franchising or letting property? thank you. MK

Hi there

As it happens I do have experience in just that. I have composed a detailed response and sent you a PM.

Opinion

Murphybear wrote: »

Hi there

As it happens I do have experience in just that. I have composed a detailed response and sent you a PM.

Any chance you can post it here in case this question is asked in future, and for the nosy amongst us?