A business start-up service says the cost of joining a franchise lettings agency can range from £2,495 to a hefty £150,000 - and that this route is relatively “low risk.”
The online service, called Startups, says the UK’s growing private rental sector and the proliferation of residential lettings franchises combine to provide a relatively low risk way of setting up a business.
It cites Peach Lettings, Belvoir Lettings, Martin & Co, and Century 21 as examples of successful franchises which offer training, meaning “you don’t need to have a background in residential lettings.”
The service gives an interesting insight into the costs of buying into a franchise: it says Belvoir! charges a “rather steep” £150,000 but this includes a high street outlet. Startups claims this is high compared to other non-property franchise opportunities “but, with most banks willing to cover a large amount of this funding, it’s more feasible than you would imagine.”
It says an alternative is the online agency route. “If you’re happy to work from home and aren’t fussed about owning a high street agency then Peach Lettings offers a far more affordable property lettings franchise package at just £2,495.”
Rather optimistically, Startups claims “you’ll ... be likely to get your investment back within no time. Belvoir says that the top 25 per cent of its franchise owners have an average turnover of around £332,000 and Peach Lettings says that franchisees can earn in excess of £100,000 revenue per annum.”