Tag Archives: Lettings Franchise

16Aug 2011

Franchise News: Starting a Letting Agency not so easy!

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By Steve Roulstone

I have been somewhat surprised to hear that after many years of insisting that the only way to start in our Industry was to have a High Street presence, with all of the associated costs that this envelops, one of our major competitors has now made a major switch and started to market a start from home operation and from what I know about the industry and process I can only surmise that this is purely a cost motivated decision, because all of the evidence from my own Franchise offices is that the need for a High Street presence has never been stronger!

Historically not needed.

I took over the running of our Franchise two years ago, prior to that, the previous Management had assisted people to open offices in not only the High Street, but also from serviced offices and from a home start. The fact that this was possible at that time is confirmed by the fact that these offices are still trading and indeed have been doing so for many years, in some cases approaching a decade! But what is also clear is that this is not the case now, as I have had confirmed as I travel around our offices and discuss current trading levels.

Inherent differences.

What has been confirmed to me is that the offices with the biggest profile are the ones that are enjoying good increases in numbers of both property and number of Landlords. (This is an import point because it needs to be recognised that the number of Landlords is growing significantly and the growth is not existing Landlords buying more properties) This is not the same when smaller offices are concerned because of the massive increase in competitors. Through both the growth in Letting Agencies and Estate Agencies ambushing our trade, the customer has very soon learnt to look around and there is no doubt that even in a technological age, the best place to look is on the High Street!

Web sites tell no story.

 There is very good sense behind this, because on the internet it is very difficult to see any difference, in fact, the better the web site does not automatically mean the better or larger the Company and because of the financial implications of a poor service, the customer has taken to seeing with their own eyes! At Stafford, I recognised several years ago that when Landlords turned to the web for research, we needed something to make us stand out from competitors. Therefore with apologies to potential Tenants, if we only listed all properties we have available (as Rightmove eventually insisted, because of course Tenants are their customers) we would not look very large, so we have left all properties on our books on our site.

Best advice.

What this current trading pattern dictates, is that any new start (as we are only too aware!) needs to look very closely at where they are going to get new opportunities, because it is only new Landlords who will become their Customers (unless you have friends with property) because Landlords do not change either easily or often! It is the practical day to day reality of Management that confirms this, because unless you make a real hash of matters, you will always have the opportunity to resolve issues before any change is reasonably possible. (Consider standing orders for rents and relationships with existing Tenants) I always believe in placing myself in the position of the potential customer and what needs to be answered may be a hard reality, but one which needs to be faced straight on; Why should Landlords choose somebody operating from home, as against the choice in the High Street?

Starting again?

Not something I would like to do again at present and explains why those considering Franchising are not exactly rushing to the plate at present! But even and probably especially in hard times, we as Franchisors need to be both truthful and realistic for the benefit of potential investors in our Companies. Without and probably until professional recognition for Letting Agents, via licensing or qualification is introduced, however the Government decide to proceed as they surely eventually will to deal with an increasing level of complaints, we have nothing to differentiate us from the rest of the market I believe that the choice for Landlords will not diminish until such legislation is produced, so until then, we have to accept where we are and why!

27May 2011

Franchise News: Franchise Networking days producing rewards.

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By Steve Roulstone

At Castle Estates we have regular Network Days where all of our Franchise offices get together and discuss our Industry at length. They give Franchisees the chance to discuss various issues with their compatriots, talking over problems that have occurred, sharing successful ventures and opportunities and trading methods and trends with each other. When we put these days together, we always try to have a central theme running through them, so that our offices can review what they have seen and review an area of trading all in one day. In the past these themes have been Web awareness, Property Insurance and associated products, Changes in legislation and Advertising.

Making the most from contacts.

This was the theme from this week’s get together and the success of the day has prompted me to put ‘finger to typepad’ and comment in this way. The contact and support that flow through these days mean that they become a seminal part of being a Franchisee. This, I believe is one of the major reasons that Franchising offers such a popular route to business success. Every Franchisee appreciated just how important it was for their colleagues to purchase a Franchise and respect is automatically granted. This is then shown through the discussions and ideas that flow through the day. They need to be seen to be understood, but I have never witnessed a similar scenario in any other type of Business meeting and I have attended many conferences and seminars over the years.

Property Portals

We had two portals represented on the day and both offer a different view to the market place. Gumtree only offer the Lettings Market on their site and are therefore important both as a lettings portal and by the way in which they attract the best type of prospective Tenant, whilst Rightmove as the market leader are a site that any self-respecting Letting Agent has to be seen on! As a result of the presentations, all of our offices now understand the options and services each portal offer, for as a punter you would only see the front end of the sites, whereas as a customer, there is a whole sea of reports and functionality available to us to help us understand where and why our prospective Landlords and Tenants visit us. The problem being just how difficult it is for everybody to understand the nature and power of the services these functions provide. It is safe to say that this style of day ensured that everybody left with much enhanced knowledge and will now utilise the functions to their benefit.

Landlord Insurance

Specialist Insurance is something that I have spoken about and something I recommend all Landlords to use, but again, following a procedure that has lasted a full 18 months and as a result of a Rental Industry  supplier that has listened to what we have told them and offices that have taken on board what their peers have recommended (length of service and experience being paramount) we now have a situation where the whole group is moving forward in an innovative way, using this crucial Landlord requirement.

The future.                                                                                                                 

Add the specialist software designed to ensure we make the most from website visitors that we discussed and the meeting was heralded by all to be a great day and this is the point. Only with Franchising are such progressive steps made so easily, because of the willingness from all present to share, assist and develop everybody’s business, not just their own. It is in the interest of every Franchisee to see progress for all offices in the network and there, in finishing this article, is that word again:

 Network: only truly available through Franchising!

04Apr 2011

Franchise News: A Franchise business as an investment choice

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By Joel Caws

Investing money into a new venture can be a good way of putting extra capital to work in order to make a profit. There are plenty of ways to invest capital from merely putting it in a high interest bank account or investing it into a business opportunity.

Generally, the more riskier the investment the bigger the pay back or loss. When you place an investment into a savings bank account you’re confident your capital is going to be safe, on the other hand the gain you will get from the invested capital is often low. It’s also associated directly to the interest rates at that time, hence if interest rates go down, the benefit from your investment may also be reduced.

Many people choose to make an investment into the stock market which can be an activity that carries much higher risk. The profits can be high for those who have taken the time to know the reasoning behind the way stocks and shares move, however for people who are uninitiated it could be a fast way to lose your money.

Property is another recognised investment preference having a pretty sturdy track record. Although property markets can go up and down in the short term, they have a tendency to rise gradually in the long term. As a result many investors put funds in property because they want to see a positive benefit in the future.

Investing capital into a business venture is a well-liked option. You will find a few methods to do this by means of either starting a new enterprise or looking for an established one that is already operating.

Opting for a franchise may improve the success rate further because a franchise business relies on a proven franchise formula. Quite a number of franchise business opportunities can be run as management franchises which are perfect for individuals who wish to put capital into a business venture but not be hampered with the actual every day running of the business. By employing staff to operate the franchise business, it is possible to manage the business without getting your hands soiled.

There are also franchise resales which are franchise businesses which have already been setup and have been trading for some time. Deciding on a franchise resale may help to further lower risk as you will benefit from a business history to look at prior to deciding to put your cash into it.

No investment is completely devoid of some risk, nevertheless a franchise system provides the extra support of a tried and tested business formula along with training and support. Generally speaking, the success rate of a franchise is good with nine out of ten franchisees each year turning a profit according to Natwest/BFA annual franchise industry surveys. Whether or not you choose to put money into a franchise opportunity or some other business venture, one point is for sure: the success of the business (and the return on your initial investment) will likely be measured by your commitment, hard work and dedication. If you don’t use a strong-minded and disciplined approach, any venture will most likely be doomed to fail.

02Mar 2011

Franchise News: Why choose a Property Franchise NOW!

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By Steve Roulstone

Last year I wrote a Blog about why somebody should choose a Property Franchise when looking for a new future in Franchising. This week some figures have been released as a result of the Communities and Local Government English Housing Survey for 2009-2010, which confirm if ever there was a right time, that time is now!

Increase in Rental properties.

The figures released based upon a survey of a total of 21.5 million properties in England, has shown what can only be described as a mammoth increase in the Private Rental sector over the preceding twelve months, which even outstripped the increase at the start of the housing sales slump in 2008 of 1.2%. This time the increase is 1.4% and this is confirmed by recent news items, suggesting that demand could see this increase outstripped during this current year. Indeed figures are being discussed which would give another record increase approaching an additional 2% possible this (current trading) year.

Steady growth.

The overall percentage in the private rental sector as shown in this survey is now 15.6% (Current figures being discussed are 17%) with the social rental sector now falling to 17%, it clearly looks as if private rented property could overtake the social sector to become the largest sector, within the next twelve months. In big round numbers, this is an increase of nearly 300,000 properties in one year, which is all additional potential business for Letting Agents, at a time when more and more self managed Landlords are also turning to the Industry.

Effect on local markets.

So how does this affect local markets, well let’s look at Birmingham, who confirmed 420000 properties within the City Council boundary paying Council Tax last year. 1.4% growth would represent a potential of up to 6000 additional properties, which, at £1000 average earnings per year as a conservative estimate, would produce potentially £6 million pounds additional turnover for the area. Even in a quarter of the City, £1.5 million additional turnover, should encourage anybody able to make a start in Franchising, that the market is buoyant and still growing.

Continued growth.

But it is not just the current growth which is encouraging, for the market has shown growth of over half of one percent year on year for the last decade. What is happening now is a clear sign that this growth is constant and growing. The icing on the cake for Letting Agencies is that the number of potential Tenants continues to grow. This has also been widely reported in the press, and again in a period after this latest survey. So never has there been a better time to become a Letting Agent so you will have to excuse me, whilst I go and make sure there is a clear path to my door!!

20Jan 2011

Franchise News: Franchisee guidance and timetable – The key to clarity.

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By Steve Roulstone

If I have learnt anything in my first year as a Franchisor, it is that the best help and assistance I can give to any potential Franchisee is twofold; clarity of purpose and a clear route to achievement. I should not be surprised at all and really should have known from day one, as it was what I was looking for when I first approached Franchising as a way of achieving my objectives in life, back in 1999. But as it is something that happened in my case rather than something I knew I needed, it was something I accepted without questioning why or even realising it was what was being offered and subsequently was then delivered to me.

Franchise visits.

At the time that I was investigating the Franchising market, which luckily for me was in the autumn of that year, just at the time of the National Franchise Exhibition, I visited several organisations from differing trades and Industries, all of which in my mind could be an industry that I could operate in. In the end it did not take me long to choose the Company I now head, but looking back at why, is more revealing.

Why Castle Estates?

So why did I choose Castle Estates? I had decided that it was an Industry that I felt comfortable operating in (Requirement number one!) but they were not the only organisation that I looked at as I visited the possible partners in Franchising with my Wife (which is exactly what any prospective Franchisee should do, right from the start, as it is so important to ensure that all partners believe in the venture you are about to launch) so I asked her when I was thinking about the answer what she remembered of the day at the then Head Office in Milton Keynes and her answer was what formed the basis for this Blog.

A vision of how it worked!

Jenny’s words not mine, that was her answer and it is exactly what I have learnt in putting together the manner in which I present not only our Company, but also the Industry and most importantly, Franchising itself, to all who come to discuss the opportunity of becoming a Letting Agent with Castle Estates. It can be frustrating sometimes to realise why and how some things come together, what I have come to describe as ‘earth shatteringly obvious moments’! As a Franchisor, we need to offer a clear route to becoming a Franchisee, so that it is understood what is needed and how our goals are achieved, offered within a timetable which clearly states when all of this fits together as we work towards starting this all important and all encompassing venture for both parties. Added to clarity of vision, so that what we are trying to achieve is clear for all to understand and how it is achieved is understood as well as what is needed to continue to progress towards completion and the start of a new business. 

What to look for.

This is not something that has come easily and needs careful consideration in ensuring the plan (which in my case has taken the best part of six months to assemble, this with the assistance of professionals trainers to ensure nothing is left to chance) that every franchised organisation puts together is consistent and delivers ‘what it says on the tin’ (a saying I am using more and more) but I would recommend everybody looking at a Franchised Company considers this methodology above all others. Only when what you buy in too can be clear and decisive about what they deliver, can the end result be worthy of your investment.

08Dec 2010

Franchise News: Renting on the web.

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By Steve Roulstone

Franchise News: Renting on the web.

Earlier this year, I posted a Blog about the importance of web presence. ‘Wrapped in the web’ I stand behind what I said in that post, but I have noticed just lately, that it is being suggested that it is possible to open new Letting Agencies solely using the web. This, in my opinion is not correct – not yet and certainly not for the majority of current Landlords.

Current Trends

As Franchisor when discussing possibilities with new Franchisees, I would not recommend starting a new business, in what has become and will continue to be driven as a professional market over the last and probably the next ten years as well. It is my role to ensure that all new offices are given every opportunity to succeed and that includes the need for visibility from a business address, preferably in the centre of any operation. Even five years ago, this was not the case, but at present it definitely is!

Personal contact

I believe that there are two main reasons for this, firstly, as a people we still prefer the ability to have ‘meetings’. The internet has not yet provided a way of assessing us technically, enabling Landlords to employ Agents without meeting. As a Landlord, distant or not, I would still wish to get a feeling for somebody through meeting them, a point which was summed up only today, by one of our Franchisees, who stated in an e-mail, ‘meeting is the professional way to do it’ well I know we would wish to stay professional!

No office to call home

Secondly, we are a conservative nation at heart, and like our traditional methods. For Landlords, that means a Letting Agent should preferably have an office, whether it be retail or serviced, it is where we are expected to work from. I have experienced all forms of working locations in my time as a Franchisee and I know the difference it made once we had a ‘presence’ in our town. We have never looked back! So do I believe in the web, absolutely unequivocally, yes! it is just as important to have a ‘presence’ on the web, but look at it like this would you expect a legal Company who provides a service for the public which encompasses the lives of other people as well to work from an invisible address? Now tell me if I was describing a Solicitors office or a Letting Agent – they both provide the same style of service after all!

Crystal ball time

But in the future, no doubt this will be true, as new technology spreads, we already have the ability to hold meetings across the net, no doubt soon we will have the technology to sign agreements via the net as well, but not until all of our Customers have the ability, equipment and understanding of such procedures will a true Internet based agency be supportable. For Tenants, no doubt web based is perfect, although viewings still have to be held of course, but at the moment Tenants are not our Customers, Landlords are. In the meantime, we continue to give Tenants the information they require through the web, whilst respecting the need to give the type of servcie our Landlords expect.

29Oct 2010

Franchise exhibition observations

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By Nick Strong, Franweb.

It was fascinating for all that attended the national franchise exhibition this year to see how the economic conditions we are going through are affecting the community.

Far from being negative the mood of franchisors on their stands and delegate visitors considering business format franchising as their future was brisk and buoyant.

Steve Roulstone, MD of Castle Estates, commented, “The show has been very busy as has our stand.  We have noticed for the first time an increased number of would be franchisees aged thirty years old and under.  We are excited about the focus and quality of visitor and have already set up some very promising meetings”.

Other franchisor exhibitors I spoke to echoed much of what Steve Roulstone had to say. 

The increase in activity at the national franchise exhibition in both exhibitors and visitors is also reflected on line.  Fro my own business www.SelectYourFranchise.com we have seen a huge increase in buyer visits to our websites and a steady increase of franchisor advertisers in recent months. In fact, buyer visitors to our websites in September 2010 increase by 50% compared to the same month in 2009 and more leads were generated than in any September going back to 2006.

 The economy may be flat but franchise business certainly is not.  The franchise department leaders of the banks have made it clear that they have money to lend to well qualified franchisees and suitable franchisors. Clearly every franchisor should select suitable franchisees carefully and every franchise buyer should go through personal and franchise system due diligence before entering into contract, training and trading.

 It is great to see a go ahead attitude and the franchise community is clearly demonstrating this.  Franchise community leads are cautiously optimistic about the future.  The key is to work hard, follow the proven system and work together for the common good.  This is good franchising.

 

06Oct 2010

Franchise News: Franchise Business

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By Steve Roulstone

 

Well we have just about recovered from what was a draining two days at the National Franchise Exhibition this weekend. There is no doubt that standing on your feet for two days does take it’s toll (I used to work in retail and you can get used to standing – eventually!) but it is a small price to pay for what is a refreshing experience every year.

Renew your Franchising passion.

When I first became a Franchisee, I felt so passionate and proud about what I set out to achieve and by visiting the show every year, firstly as a Franchisee on behalf of Castle Estates and latterly as the Franchisor, I have always find my passion and pride lifted once more by so many people setting out on the same road. It is always a great reminder of why I do what I do and sets the playing field level again for the next year.

Looking like a bumper year.

But this year, as most commentators have agreed, the level of enquiry has been really good and personally I found those choosing to visit our stand, showed a consistent high level of research and knowledge both of what was possible as well as what they wanted from Franchising. It is probably the first year that I have not heard those immortal words, ‘What’s this all about then’!

13 Months please.

The days after the show are all about speaking to and arranging with potential Franchisees the next step that was agreed at the show, with Literature being sent to those who truly want to read about you and arranging to meet those who really want to get to learn about what we offer. At this time of the year, I could do with fitting in an extra month, just to cope with the demand, but that is probably my fault as I like to see everybody myself and especially on a one to one basis.

Franchise Opportunities.

But there is no doubt that it is also the most important time, as we move to make the best of the opportunity, in the correct way for both Franchisee and Franchisor. If I am impressed with the standard of potential in the people I am going to see over the next three months, then it is right and proper that we ensure we allow this potential to make the most of the partnership’s we will develop over the coming years. Now is the time that the passion that has been renewed again this year, to shine through!

23Sep 2010

Property Landlord advice: Property Letting Agents

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By Steve Roulstone

 

As against Property Estate Agents, and this is the subject of my blog for today. Why do people still visit Estate Agents to carry out a role covered by a different trade? and we are different, in all the training I have gone through, I have never been taught how to manage a property sale and I can guarantee you that at no stage has any Estate Agent under the guise of training for selling houses, ever been taught how to be a Letting Agent.

So do you just not like us?

But people still knock on the door of Estate Agents to place their property on the Rental market. Of course, one of the reasons is the image that has historically hounded our trade, but I firmly believe that is changing. With the proliferation of Franchised offices throughout the Country over the last ten years, we are finally getting the professional image across and it is with great pride that I count Castle Estates as one of the Companies creating the change, but I believe this goes deeper than image and is tied to tradition.

Habits die hard.                      

I believe that it is habit that causes most people to look to the traditional office to look after our property interests. This is of course where Estate Agents score, because the Letting Industry is still new compared to the traditional route of property ownership, but this situation is changing, as the % of UK rental property continues to rise, currently sitting at 14%.

Property Letting Agents, a developing Industry.

This is where we must now concentrate as an Industry and look to educate the public, that our Industry is not one that can be turned to in a time of need (most Estate Agents started to offer rental services because they could not sell enough houses) but rather to be able to provide the correct Management that ALL of our Landlords need, the agent should be trained and specialise in its own field. After all, you rarely see a Letting agent who sells as well!!

21Sep 2010

Franchise News: Franchise Opportunities.

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By Steve Roulstone

 

It is that time of the year again and the National Franchise Exhibition at the NEC is due on Friday October the 1st and Saturday October the 2nd. There are other Franchise exhibitions at differing venues throughout the year, but you just know from the increased level of enquiry, that it is this exhibition which really gets the public thinking about the Franchise Opportunities on offer.

What to look for.

I visited the show in 1999 and went with a completely open mind about what I would find, but wanted to come away with ideas that I could then review and research. Not just about individual Companies but also about the different trades available through Franchising.

What not to do.

I now sell my own Company at the show, but represented Castle Estates as a franchisee through the years and along the way, I have had many conversations that differed in length and approach and spoken to dozens of people at the show. But what needs to be appreciated, is that nobody actually decides on that day and I believe that it is wrong to try to sell the actual Franchise, rather we should just be letting people know we exist and in what market.

So look for the Franchise Opportunity.

What happens when visitors get back home is far more important than what happens at the show. When the literature is read, or when somebody follows up on that brief introduction to ask about more information. Because it is these reactions and others like them, that will have more impact than anything that actually happens at the NEC. It is based on these reactions that people will see the opportunity and through them, have a realistic chance of actually becoming a Franchisee themselves.

Experienced advice.

This is not just my mantra as it has been part of the science of Franchising that I have learnt through the training I have undergone since becoming Franchisor. I think it was fortunate for me that it suited the way I went about the process, but it is worth remembering, that most visitors would actually prefer not to be hounded anyway. I call that a win win!