Agency Economics

Management fees, tenant find, portfolio size and the break-even point

This book answers the question that decides whether a letting agency is worth your time: will it make a profit, how much, from how many properties and by when? It picks out the few numbers that matter, shows where to find reliable local data without spending anything, and separates the income you imagine from the income you actually bank. The cost chapter sets out the surprising number of costs an agency carries, including the ones nobody mentions. The model is then stress-tested against a bad month, the loss of a landlord and a downturn. A complete worked example builds an agency from nothing, pound by pound, so you can see how the numbers behave over time and how many managed properties you would need before the business could pay you a wage. The final chapter helps you build your own agency calculator and names the legal questions it cannot answer. Next in this series: “Redress, Client Money and Regulation”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the lost landlord and the downturn
• A complete worked example, start to finish
• Your agency calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.