Start business property can be done at home with little capital, and this society can be built in a large company in a short time if it really works, and go over in the right way. If you do not have any property of yours, no matter how we focus on the first rental property of others.
But first things first. You need to decide a name for your business, then set goals and targets, and thirdly of courseMarket Research (MR). All these are very important for the future success of your business. Do not skimp, and do not rush. Your name. What are you going to name your organization? Most real estate agencies choose to operate the most important names such as Jack Jones & Co and then the word "Lettings" or "property", or alternatively a completely different name to add your own, such as oak or property, or rental Star or Hufftown Lettings. Hufftown is where you live, for the purposesthis article.
Take some 'attention and time over your choice, it is very difficult and expensive to change the name later. Take a look in local newspapers and see who is already in operation. You would not want to choose Hufftown Rentals, if there is already a Hufftown properties locally. This would only confuse and annoy people unnecessarily.
Another thing is to remember a web address. Sooner or later you have a Web presence, and it would be nicewhen it was the name chosen for Internet registration. For example, imagine you have toyed with the name Oak Properties. I just ran a check to see if Oak Properties is available online. As often happens, it is not, however, Elm and Ash Properties are properties that might be useful to have a name, where you can immediately bolt on a website to choose.
If you found a network name, also available, register as soon as possible. You do not need to use it immediately, but once you havehas come, it's yours. The names are snatched all the time, and may be suitable as a few names are still surprisingly available. Once you have decided on a suitable company to market tests on a few people. Ask the children, or your family. They will soon tell if it's cheese or too tacky? You want a name that is easy to remember that you are using, and that reflects what you do.
So we decided to name one. We call Little & Keen, Vacation Property. Forward,definition of objectives and targets. Leave a modest goal. Let the agency you want to be bigger and better house in Hufftown! It makes no sense to set targets too low is that? Put this high, aim high. No one wants to achieve something trivial. And a time scale of what we should say, 10 years? 5 years? How about 2 years max! That is, our goal is the biggest and best Hufftown agent can be within 2 years. We will start from your home to keep costs down, and wecan stay at home, but that does not matter. It 'a difficult target, but not out of reach. Sun begin, the time factor.
Activity 3: Market research. What should we do research and where? These are the things you need to know. Who are your competitors? What they are asking their landlords and tenants? Where are they advertising? They have a website? What are the qualities that they currently have for rent? What are their hiring? What are your competitorsWeaknesses and their strengths? And how to find these things? You are in Mystery Shopper mode, how to do it.
Apply for a job at the CIA or MI5 as a test set and have the same small task to complete to get all this information within three days (always and only with legal methods.) You could not do 't you? The application will depend, of course. Get a large sheet of paper and a ruler and a table. The primitiveI know, but effective. Sometimes a pen and paper is always better than the technology.
In the left column is a list of all participants, who have discovered in your area. Your local newspaper is a mine of information. Let the bottom line for the free choice of the company. You can fill if you know what you are facing. Column two is the amount of each agency charges its tenants. By the way, you can only charge a tenant, the lease application. You can not charge a tenant onlyregister their needs. This is illegal and a definite no-no. (This is the law in England, do not know anywhere else, you'd need to check that.) Column three and four are, how strong is the competition charging their owners. Column five is the address of the site, and column six for all other relevant information. Now you know what it takes, we want to dig! You may feel a little 'uncomfortable prying into other business matters? Why? No!
It is normal practice activities strictlyMonitoring of competition. Not to do so would be extremely foolish. Monitor Tesco Sainsbury, Asda Walmart, the monitor every single day of the week. In fact, Tesco, also from where to advertise their website to compare prices of thousands of products in the shops boast of its rival. She, like Asda, Sainsbury and provide this information? I doubt it. This is market research, and that's what you are doing here.
The first place to find information on their websites. You cana vast amount of market information on your rivals (and yes these companies will soon be your rival) sites. You will be able to fill and fill a whole row of boxes on paper, but probably not all. You may have to put on your best shoes and smile, and head down to town and raid their stores.
Some agencies are disturbing the life out of you when you enter, you want to know everything about you, you may need to be creative, while othersleave all their catalogs and price lists, and vital, perhaps even obtain from their work. If they talk about you, what do you think? The truth, of course. Tell them you are considering the purchase of a buy-let the property and lease out, and have all the information that they can carry and browse at your leisure. Most agencies have plenty of information. These are all things no guff 'you will be charged. Take it all, the whole lot and flashbackshome and read it carefully from cover to cover. You can learn a lot through the property above, these cards alone.
And is that a lie told you about buying property? Of course not. You are about to reconsider the purchase and acquisition of properties, and if you're not, you can jolly well should be, otherwise what you are doing in real estate? Your ambition is to be pure on the operation for others. Once you have the necessary deposits, you should consider purchasingOf course they are.
He returns home and happily complete the chart. It looks good, almost every box is full, except for you at the bottom of the page. Now we know what the competitors are all known for their important services shop, for what you want in office? They massively undercut course! No, they are not, because there is no need for anyone and made a lot of money massively undercutting. They have several important benefits coming your way, you make the mostthem.
In England, the first advantage is that you are registered for VAT purposes. It is not necessary until the top turnover £ 60,000, and that gross income is not rent. It will take some 'before you must register for VAT, so get the most from your vacation VAT - will not last forever. So if the competitor is charging 10% commission on their owners PLUS VAT charged on rent, if you charge the same rate, without VAT, is already a significantPrice advantage. Set a property to £ 1,000 per month (pretty simple figure) and you can upload is 10% commission. The landlord would get £ 900 net. But Big & Swanky, blew up the local opponents, the landlord would only receive £ 882.50. A small advantage you might think, but more than a year that children up to 210 pounds, and if the landlord had ten properties, then it is £ 2100.
Landlord leases property for a reason and one reason only, and is to make money. TheirNote these things, believe me. If they are cheaper, they will begin to be interested in you. You could be in your early days always easy to reduce the price by about 1% in order to gain more information. You could do the management of 9%, which is entirely possible, and would already make a difference to a landlord with multiple properties. But be careful to cut costs too. Would be much better to think about how to raise taxes. It 's your first USP, Unique Selling PointCourtesy of a VAT man. They are exempt from VAT.
The most damaging agents to offer two separate services. Find a single tenant or a tenant and manage the properties on an ongoing basis. Make sure that the two different services clearly in your head, because if you are confused, the landlord is certainly good. A reference to the service and to locate a suitable tenant, prepare the documents, collect the first month rent and security deposit of books, become the property is to take a charge and you're doneThat's it. (Yes, I know there are other things to think about, such as safety and reading gas meters, but we will return later). It's fast, it's clean, and you have no worries or responsibilities under way. But after the one-time fee, you do not have a regular income either.
Service B is much better from this point of view. Here and find a suitable tenant reference, prepare documents, book them in the property, and then the constant management. This means that the collection ofRent forever, and a fee per month for it. Some tenants who live on the same property for 20 years, more than you might think. All you have to do is check the property from time to time, and to monitor the rule that the rent is running smoothly and satisfactorily for both parties. If you can keep increasing the number of properties to manage every month, see the total share of the income is constantly increasing. These fees are also available with regular income to fall back, which isEspecially reassuring when times are quiet.
Think back to the chart. Column 3 is for your competitor to the charges the landlord to find a single tenant, column 4, the fee for ongoing management. Two distinctly different things. Not to be confused. After completing the table, you can pencil in your own fees. Now you know how much you charge your customers and how you can receive as owners and tenants, who pay taxes and you.The way in which some agents charge a fee for the service of A, find a single tenant. Perhaps 300 pounds, or only a portion of the monthly fee of say half or three quarters of a month's rent. Half a thousand pounds, it is better to have a rate of 300 pounds. Make sure that the taxes as high as possible while remaining competitive.
Think about it, check and recheck what to charge and Sleepy & Big & Swanky Dull too. Then set the prices accordingly, and remind them not to throwStone. I am a small independent. You can always negotiate and / or change prices at any time, as you see fit. Big & Swanky would probably be three meetings on board and refer to the place before they could or should change. There is another benefit of small and independent of owning their own business, to control their own destiny. You can be smart, be able to compete at all levels.
Look for the next article in this series titled "Finding propertiesFor rent "and good luck for your business.
