Going it alone in lettings

‘Starting up a new firm in this market, you must be mad!’

That was the reaction of some people to the news that David McMaster, past president of ARLA, was establishing his own firm after twenty years as an employee. Now, a little over three months after opening the doors of Jordan’s McMaster Residential Lettings for the first time, we asked David:

Q Would you recommend going it alone?

A “Yes! Certainly, with one or two caveats. Admittedly there is risk, but there are ways to control risk. One is to go into business with someone who knows the ins and outs of starting up a business. That is crucial; however talented you are as an agent setting up your first business is daunting.”


Q So with whom have you gone into partnership?

A “I was very fortunate; a chance discussion with Robert Jordan (David’s predecessor as President of ARLA) resulted in the formation of a joint venture. Jordan’s National Contracts has a large number of properties in Norfolk and Robert and I have grown to understand each other through ARLA. We share a very similar outlook on business.

“I had never set up on my own before because of the cost of putting the full infrastructure in place to run a professional and efficient office. I believe this is what stops so many agents from starting on their own. Also, by the time you have the experience and confidence to be able to succeed you usually have a family and mortgage to support as well.

“Getting a new name off the ground in an area where there are many established firms is also a challenge. However with best use of all the tools at your disposal, a sound knowledge of the competition and a bit of ingenuity, you can stand out. Offering some USPs over and above those of your competition will win those desperately sought after instructions in those critical first three months.”


Q So how does it feel to be ‘master of your own destiny’?

A “Only those who have taken that brave step will understand just how sweet tasting and rewarding it is to get that first instruction. The first viewing, seeing your first board up and first deal, every time the phone rings there is the anticipation of an opportunity and you sometimes have to hold back just a ring or two rather than seem over eager.

“Every tiny chance of business is explored, regardless of how remote the possibility may be – I have to admit to dismissing ‘long shot’ leads as an employee. Winning those ‘long shots’ when you are in competition with major corporate agents is immensely fulfilling.

“It is not all beer and skittles though. An employee of an established firm has a degree of comfort. but very little real control over their own destiny regardless of how hard you work. Having a well established professional firm that mirrors your own standards as a partner is the best of both worlds.”


Q Were there frustrations then, in your former role?

A “Working as a letting agent in a predominantly sales based firm can have its frustrations. Obviously this varies from firm to firm but lettings is invariably the poor relation. I have worked for small and medium sized firms and corporates but I have only been comfortable working for specialist letting firms.

“Making the choice to join forces with a lettings specialist of Jordan’s calibre was easy and far outshone the three other offers on the table. Working with people who know and understand every aspect of the industry is a pleasure and very good for the soul.”


Q What advice would you give to those considering the leap?

A “Firstly is there enough new business in your chosen location? You can be the best letting agent on the planet but unless a landlord has a very good reason to leave their agent they stay put. Landlords to whom you gave such good service don’t necessarily stampede into your new office!

“Secondly, choose the right partner. If you have investment from someone make sure they understand that it will be a while before that investment starts paying back. Very few cold start letting offices break even let alone reach profit in the first 12 months. That can be along time for someone who does not understand the nature of lettings and can put a massive strain on a business relationship.

“Thirdly a good infrastructure is a huge benefit. Accounts, marketing, IT are all complex – if you can plug into existing departments you save a huge amount of time, effort and expense. As for daily operational organisation, if you have the confidence and drive to set up your own firm then you probably have all the know-how you need."


Q And finally?

Go for it! Its a big step but well worth it if you build on a solid foundation.


And in sales…

Housesetc already has a successful office, operated in conjunction with property management company Link Agency. Now they are opening a second office in Selby. Having opened their Goole sales office in February 2008, in the biggest and most damaging property crash in living memory, they are clearly doing something right. We spoke to Houseetc Directors David Leake and Marie Leake and Phil Jones of Link Agency who all, like David McMaster, were told they must be mad.


Q You’ve opened a new branch in slap bang in the middle of a property crash. Are you mad?

David: People said we were mad to open when we did, but we saw it differently. We knew that if we could survive in the tougher market conditions we would thrive as our business would be leaner and meaner than most and it would better prepare us for when, and not if, market conditions improved.


Q You’ve certainly made it stick. What is the secret of your success?

Marie: “We believe we offer a first class service to property buyers and sellers, our superb website carries lots of testimonials from previously satisfied clients, some of whom have even become friends.”

Phil: “We have achieved a solid base and Selby is a very exciting venture for us, made more so because of our partnership with Housesetc. The success of Link Agency is in the people that we employ. Our teams are trained in the systems and processes required to run an efficient lettings business, we are also very much up to date on all legal aspects of property rental and investment as well as collection procedures and rights of tenure.

"We are delighted with the response that our Selby business is getting already and we look forward to serving the people of Selby for many years to come”.


www.jordansrentals.com
www.housesetc.co.uk
www.linkagency.co.uk