Tag Archives | letting businesses

How to value a letting agency

How to value a letting agency

A lot of nonsense has been written about how to value a lettings business.  Some people say that they are valued on a multiple of profit.  They are not.  I sold a letting business recently for £3.65 million which was trading at a loss!  Some people say that they are valued on a multiple of […]

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WARNING : A Crimewave is about to happen

WARNING : A Crimewave is about to happen

Let’s consider the example of a small letting agent turning over £300,000 per annum mostly from let-only properties.  At the moment, they might be making a profit of 20% of turnover which is £60,000.  This provides a comfortable living for the proprietor.  But agents like this currently earn up to one third of their income […]

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Will your letting business survive?

Will your letting business survive?

It is becoming increasingly clear to me that a lot of letting businesses are not going to survive the tenant fee ban that is due to come into force next spring.  The businesses that seem destined to fail are the let-only businesses, many of which were set up by residential sales agents in response to […]

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