Letting Agents should aim for 50 per cent profit margins according to a high profile former president of ARLA.
Sally Lawson says there’s still hesitancy amongst agents that they can secure such a high margin - the majority of respondents to a survey run by Lawson’s Agent Rainmaker company suggested only 10 to 30 per cent would be possible.
“Now the restrictions of the past 18 months have largely been lifted, agents’ personal aspirations are mostly focused around enjoying a better work/life balance.
“When we asked them which would be most preferable, they were twice as likely to choose being able to take more holidays, or time out from the business to pursue other hobbies and goals than they were to choose being able to retire early, enjoy a larger pension pot, reduce their hours or work more flexible hours.
“And eradicating their own overtime was a priority for hardly anyone – despite almost a third working between 40 and 50 hours a week, and almost a quarter regularly working in excess of 50 hours per week.”
This week Lawson’s Agent Rainmaker Live event is in London from September 10 to 12 at a Heathrow hotel. More details here.
Last month Lawson spoke to Letting Agent Today’s Chris Buckler in a video interview here.
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I think she means margins. Her own letting firm has a hurrendous turnover of staff, which I suspect is due to the low marggins on tenant fees,
Well it's aspirational, I'll give her that. Lets remember how much income we've lost thanks to the tenant fees act 2019 and now we'll be paying a whole load more to the Health Levy. We have employed 5 new team members from out in the Philippines, where economies of scale allow us to save money on salaries and also benefit from degree educated staff.
The maths on that look like this: 3 degree educated team members from the Philippines equals 1 autodidact team member from the UK.
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