Franchise Spotlight: Letting
With a rise in the number of people renting rather than buying properties, franchising offers a robust business model in the fast-growing, competitive Letting sector.
There were over 40 million homes occupied by renters in 2019 (Statista) and with an increasing number of people choosing to rent over purchasing properties, that number looks set to continue growing. As house prices increase, people look to renting as an affordable alternative.
People who own properties that they want to let out do not necessarily want to manage the practicalities of maintaining the property, advertising for and selecting renters and organising the collection of rent.
A letting franchisee may deal with landlords, investors and tenants or be involved in the administrative tasks associated with organizing contracts or even handling the maintenance and repairs of the properties they manage.
Keyrenter Property Management and Real Property Management are both examples of companies that have successfully franchised in the lettings sector. Franchisees are involved in screening tenants, inspecting properties, processing rent payments and facilitating repairs if needed.
Letting Industry Analysis
In 2021 the market size of the apartment rental market reached $180billion (Ibis World) and research suggests the number of people letting rather than buying properties looks set to continue growing.
Most companies will not expect franchisees to have real estate experience as they provide comprehensive training, however, franchisees might be expected to acquire qualifications. Certainly, excellent communication skills will be vital in this industry, with franchisees finding themselves in a people-centered role where customer satisfaction is important.
This is a sector where the marketing tools and banner of a recognized brand will help attract customers as you build your client base. In a growing and lucrative sector, franchisees will benefit from the support of an established business.