Real estate agencies are not just involved in the letting and selling of property. They may also have to oversee the ongoing management of the property. For example, they can collect rent and maintain the property continuously. There are certain factors you need to consider before becoming an estate agent. Here are some of the most important ones:
Which Type of Estate Agency You Intend to Start
Estate agencies can broadly be classified into two: commercial and residential. Commercial real estate agents are involved in the renting out of shops, stores, offices, warehouses and even factories. Other commercial spaces such as parks and forests can also be let through an estate agency. On the other hand, residential estate agencies let the property to tenants on behalf of owners of the spaces.
Qualifications and the Relevant Legislation
You aren’t required to have any academic papers in order to start a real estate agency. However, it is important to take some courses that cover the field of real estate. You need to be updated on relevant legislation such as the Landlord and Tenant Act. That being said, success in real estate is more dependent on personality. You need to employ likeable people with a sense of empathy to market your property.
You should anticipate high start-up costs when starting a real estate agency. One of your most significant expenses will be your rent, particularly if you want to set up your offices in large cities such as London. You also need to market your agency, employ staff and probably even lease cars for the company. As a new company, you may have to go for some time without making any money, so your funds should cover a considerable amount of time.
Real estate is still a largely traditional business. Very few people can get any useful business by relying solely on an internet presence. That means you have to find a suitable location for your new company. Ideally, you should set up your offices in high-traffic areas.
Assess Your Market
You need to examine the real estate market in your chosen location and evaluate the opportunities and threats. Find out what the existing agents charge and the properties they can manage at any given time. Information on your competitors should help you come up with a strategy to penetrate the market. Also, the available opportunities in the real estate market will help you determine whether or not an investment in the industry will be justified.
To start a real estate agency, you need to find a suitable location, learn the relevant legislation, make a reasonable budget, and assess the opportunities in the market. It is also essential to employ a highly motivated team of salespeople. This way, you will be able to build a successful estate agency.