How To Start An Estate Agency In The UK In 10 Steps

Starting your own estate agency can be an exciting venture, but it also comes with a lot of work.

Estate agents are responsible for all parts of the real estate process, including marketing, contracting and keeping their clients compliant throughout the process.

If you are thinking about pursuing a career in UK real estate, we’ve pulled together 10 easy steps to help.

 

Step 1: Understand Exactly What An Estate Agency Does

 

The first step in any business is understanding exactly what it is setting out to do.

Estate agencies exist to help people buy, sell and rent their properties. If you want to, you could also expand your services to include property management and advisory.

Estate agencies handle the following:

• Property valuations
• Marketing for sales or rent
• Managing listings
• Arranging and conducting property viewings
• Negotiating sales and rental agreements
• Contracting
• Legal compliance with new and evolving real estate legislation

Before you launch your company, have a think about what you want it to do, whether that’s focusing on residential sales and rentals, commercial property management or all of the above.

 

Step 2: Get To Know The Competition

 

If you are thinking about setting up an estate agency, it’s probably because you can see a gap in the market.

Have a think about how you want your business to stand out, and look at competitors in the area to understand the landscape.

For example, what fees do they charge? Do they give off very corporate feels? Is there a gap for a younger, more approachable brand?

Getting to know the competition will help you work out what your company’s USP is and how you will be able to stand out from the crowd.

 

Step 3: Create A Business Plan

 

All successful businesses start with a plan. A business plan will lay out your goals, what services you offer and a plan for attracting clients.

A good business plan will also include all finances. You’ll need to work out the price of an office, insurance and getting the right qualifications. This will help you work out how much to charge for your services, helping drive you towards profitability.

If you need a lot of upfront funding, this process can help you work out how much you need to raise in the early stages.

 

 

Step 4: Get Qualified

 

Currently, estate agents in the UK don’t need any formal qualifications to work in the sector. However, you must join a redress scheme if you want to work as an estate agent, letting agent or in property management. Failure to do so can result in a fine of up to £5000.

This just ensures that both the company and client are upheld to a certain standard.

In addition to this, it’s definitely worth shopping around for estate and letting agent training courses that will allow you to show off your expertise to your new clients.

 

Step 5: Register Your Estate Agency Business

 

In the UK, all businesses must be registered with HMRC. You can either sign up as a sole trader or a limited company. Whilst the former is definitely an easier structure, it becomes more complicated if you plan to hire employees.

Setting up a limited company in the UK costs just £50 – hiring a professional accountant can help you stay compliant and up to date with all your company finances.

 

Step 6: Get The Tech

 

Next, it’s time to invest in the tech and tools that you will need to grow your business.

You’ll need:

A website: To help you market your services and be visible to local buyers and landlords.

A good camera: For taking pictures of listings.

A CRM: To help you manage client relationships.

Subscriptions: To property portals like Zoopla and RightMove.

Accounting software: To manage invoices and expenses, as well as taking payments.

Shop around for the right tools. If you can, try and find some that can easily be scaled up as your company grows and develops.

 

Step 7: Get Some Clients

 

It’s all well and good setting up the business, but without clients it’s unlikely to go anywhere.

Setting up a business means getting creative. Think about:

• Knocking on people’s doors in the area and asking if they plan to sell
• Sticking flyers on local community boards
• Taking out an ad in a local paper or magazine
• Heading to local networking events
• Setting up social media channels, including Linkedin, Facebook and Instagram
• Investing in a website and building an SEO strategy to help you attract new customers

 

Step 8: Find and List Properties In Your Local Area

 

Once you have some clients locked in, now is the time to really make an impact.

Make sure you are open and honest with your pricing, charge reasonable fees and be attentive to their questions and needs.

Stay up to date with local property laws to keep them compliant.

Most importantly, incentivise them to spread the word about your services! Think about how you can add commissions or deals for anyone they refer. That way, they can help you grown your business. Nothing is more powerful than word of mouth.

Top tip: Get any new clients to write a review for you on Google Business, that way you can generate 5 star reviews quickly!

 

Step 9: Expand The Team

 

Once you get the ball rolling, it’s time to think about growing the team.

Staying lean and profitable in the early stages is important, but try not to let the ball drop by taking on too much yourself.

Have a look at local salaries to plan future hires, helping you expand your services without putting the business at risk.

 

Step 10: Grow!

 

So you have your company, your clients and your team. The final stage is continue to grow!

Think about ways your business can expand. Is it worth opening a branch in a new area? Do you want to expand your services?

The sky is the limit so keep going and your estate agency business will be a success in no time.