Let’s Get Started With a Redstones Estate Agency
For those looking to start their own business in the property sector, it can be challenging to find a way to get your foot in the door. Fortunately, Redstones are here to help. As an online estate agent, they're uniquely positioned to offer new franchisees a business with enormous potential for growth and the chance to turn a healthy profit. Here, we take a look at some of the critical information about the franchise and explore what makes them such a tantalising prospect.
Property franchises – the basics
Property franchises come in all shapes and sizes but are usually considered a good investment because they operate in an industry where there is nearly always high demand. Though house sales may rise and fall depending on economic conditions and market forecasts, rental agreements are always a popular choice.
Now is a particularly good time for the rental sector, as house ownership levels are falling and are expected to continue doing so. Currently, less than 68% of UK adults own their own home, and the residential rental sector has grown to encompass 15.6% of the property market. If this pattern continues, the private rental share of the market will rise to 20% by 2020.
In fact, we’re facing a market that favours private rentals to such an extent that it’s not uncommon for the press to refer Millennials as “Generation Rent.” Combined, all of this information works to suggest massive potential for growth in property rental franchises over the next few decades. Now, you just need to find the right franchise.
Redstones has been in operation since 2003, delivering customer-friendly property services to an incredible number of clients along the way. Established by Manjit Virdiand, the business has gone from strength to strength in the previous 15 years, growing to encompass franchise units all over the country. Focusing on providing customer-orientated letting and sales services for properties throughout the UK, Redstones distinguishes itself by carrying out the vast majority of its business activities online.
Whereas most estate agents are forced to pay incredible overheads on a high street commercial property, Redstones has worked hard to ensure they’re able to provide an excellent online service without the need for expensive properties in prominent locations. All the required technologies and systems are in place for new franchisees to assume control of their own territory, office space, and teams. This means starting a franchise is far more straightforward and should meet with minimal difficulties.
The Redstones service
Redstones focus primarily on property lettings. This means working closely with landlords to ensure there’s a wide variety of properties available to rent in any one area. To provide them with the flexibility and value for money they desire, Redstones offer landlords several different packages and services. These run from simple tenant introductions to a full management package known as the Redstones Platinum Total Care service. However, Redstones doesn’t only handle lettings – residential sales can be an essential revenue stream or site for future growth, too.
The total cost of setting up a new Redstones office runs from around £20,000 to £25,000. This includes the £14,995 franchise fee, all initial training, equipment software, marketing materials, and a Redstones local microsite. As Redstones is an online estate agent franchise that typically operates out of office spaces or as a home-based franchise, the initial startup cost is considerably lower than for other franchises in the property sector. Its reasonable investment costs are one of the franchise’s most appealing qualities and ensure a wide variety of entrepreneurially-minded individuals can consider signing on with Redstones.
In return for the initial investment, franchisees will receive an exclusive territory composed of approximately 100,000 homes, with a population of around 250,000 residents. However, territories are not simply carved up into 100,000 home blocks and distributed to franchisees. Redstones have put considerable care into working out ways in which they can ensure all territories have a high potential for growth. To do so, they’ve worked closely with mapping specialists to create territories that offer a balance of property types and resident profiles. This guarantees that all territories – and consequently all franchisees – have access to equally profitable areas.
Training and support
Redstones offer a great deal of support and training to their new franchisees, all of which is included in the franchise’s initial startup cost. Regarding training, franchisees will receive two weeks of intensive tuition, headed by founder Manjit Virdiand at company HQ. This covers all aspects of running the business – including how to drum up new business, how to maintain good relationships with landlords, and how to operate the organisation’s digital systems – while also introducing franchisees to the various tiered services Redstones provide. It culminates in franchisees being awarded their ARLA certification.
Once the training period is complete, Redstones begin preparing a thorough business launch plan and ensure franchisees can implement it as effectively as possible. For the first two days of business and during the initial meetings with landlords, franchisees will benefit from the presence and assistance of a Redstones franchise specialist. Support continues throughout the setup period, and franchisees can expect to receive marketing materials and a monthly visit from someone at the Redstones team.
However, it’s important to note that Redstones don’t cut off support once a new franchise is established. Instead, the channels of communication remain open, and the business takes a keen interest in the growth and expansion of their franchise units. They’ll even help develop opportunities to add additional revenue streams by moving into residential property sales if the circumstances allow it.
Redstones is a fantastic opportunity for anyone looking to run their own property business. Low startup costs coupled with extensive training and support ensure that the organisation is well placed to help you exploit a market that’s demonstrating rapid growth. As with any franchise, it's crucial that you get in touch and talk over any questions or concerns you may have before taking your next steps. If you’re happy with the franchise arrangement, a brilliant new property-based business may be within your grasp.
The Editorial Team, Point Franchise ©
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