Profitable and Well Established Lettings & Property Management Agency
Advert ref: 1027NJ
If you are looking for a profitable and well-established lettings and property management agency, this is the opportunity for you. This business specialises in high-quality HMO and residential properties in the West Midlands and the surrounding areas, with a loyal customer base and a proven track record of 100% occupancy rate for the last 12 years. The reason for the sale is the retirement and relocation of the current owner, who has built an excellent team and has exclusive contacts in the market that can be transferred to the new owner. The business has also invested in innovative technology and streamlined processes to achieve high customer satisfaction with a reduced headcount. The current revenue comes from lettings, management and repair services, but there is potential to expand into residential sales and increase the fees, which are currently below the market rate. This could generate an additional £50,000 in income per year. The business was established in 2011 and can be relocated to suit the new owner's preferences.
The lettings agency is a well-established business run by its owners, who are involved in the business's day-to-day operations. They are supported by an additional five experienced staff, with one acting as a key staff member. This acquisition can be a fantastic opportunity for an entrepreneur to get into this industry or would be ideal for an existing company looking to expand their market share or portfolio. As a potential buyer, you will acquire a business with a strong industry reputation and a loyal customer base. The company has a proven track record of success and has been profitable year on year. With the support of the current owners and staff, you can hit the ground running and continue to grow the business. If you are interested in learning more about this opportunity, please don’t hesitate to contact us.
- Profitable lettings & property management agency
- Well-established with consistent performance year-on-year
- Currently run by an excellent team with a strong management structure
- Specialising in High-quality HMO properties and residential properties
- With a proven record of accomplishments and a loyal customer base
- Set up in 2011 and had a 100% occupancy rate every year in the last 12 years
- Streamlined processes and innovative technology to enable smarter working
- Genuine reason to sell due to retirement and relocation
Property Details: Leasehold
Asking Price: £350,000 (Leasehold)
Turnover: £398,637 Annual
The business is located in the West Midlands and operates from small offices, allowing the staff to offer their services efficiently to clients and rentees. The monthly rent is excellent value for money with no rates to pay because it qualifies for small business rates relief.
The premises consist of a substantial newly refurbished office with easy access.
Size in Sq Ft: 1420
The rent is currently around 6k annually, including VAT, which is well under the market value. A new long-term lease or arrangement with similar terms will be available to be agreed upon.
Reason For Selling:
Genuine reason to sell due to retirement and relocation
The business went through consistent growth over the past three years, generating revenue as follows:
June 2021 £218,091
June 2022 £274,003
June 2023 £398,637
After a few years of improvements in efficiency and sales, they achieved a net profit of around £100k in June 2023.
Our client's current fees are very low compared to most competitors on the market, they charge between 10.5% - 11% whilst the market average is 13% - 14%, also they do not charge referencing fees, inventory fees, check-in and check-out fees etc, when the market average is £70-£85.00 for inventory, £70.00 for check-in and £70.00 for check-out, £150.00 -£250.00 for referencing fee, so there is the scope of increasing the revenue by at least £55,000 annually.
Sat by appointment only
Support & training:
Our client is happy to offer a two-week handover to help achieve a successful transitional period.
The current rateable value of the property is £6300, but our client currently pays nothing after SBRR.
Each party will bear their own cost of the transaction.