Many people interested in property harbour a desire to get into the industry, to start a property business of their own, but are all too often foiled due to lack of funds, especially in these credit crunch times when buy-to-let mortgages are so difficult to obtain.
But it can be done, and the best way to begin is to start a property rentals business.
This can be achieved with very little capital.
A chap I know, let’s call him Michael, started his own property lettings business with less than fifty quid in the bank.
He had a friend whose parents died around the same time and left the house to their only son. They were divorced, separated, and both owned their own property. Sales were slow at the time and though there was no outstanding mortgage on either house, the guy was keen to see some incoming funds flowing into his account.
Michael had been considering starting a property lettings business from home for some time and saw his chance. He jumped in and offered to rent out the houses and he did just that, both being let within a month.
Always keep your eyes and ears open for unexpected opportunities and seize them when they appear.
Afterwards, he started his business proper by placing small card ads in shop windows, and asked his brother to put a poster in his shop window too, then began ringing landlords advertising properties in the local newspaper.
In his first month he gained six instructions to let property, successfully let four of them, and already he was well on his way to establishing a full-time property business.
Of course there were some people who would not deal with him because he was a one man band, trading from home. He did not have an expensive high street shop or office, and didn’t boast a backup team of highly trained and highly paid staff.
But he was able to successfully counter those points by saying that because he was only running a small business, he would be able to give a great deal of personal attention to any landlord and property he was instructed to let.
Additionally, he was able to offer his landlords VAT free fees, a big attraction to any hard pressed landlord, and there were always going to be enough of them to keep him busy, and his business growing.
You could do the same. Why not?
If you are looking to establish a property business, starting a residential letting agency is an ideal way to begin, even if you only have minimal seed capital.