There’s no denying that working in the field of immovable property is a lucrative endeavour. If you are someone with a keen interest in this industry, it is critical that you decide in which area you’d like to specialise: estate agent vs letting agent.
While both deal with immovable property, there are significant differences between the two which are worth exploring. That’s exactly what this article covers, helping you decide which route is ideal for your future business endeavours.
So, without further ado, let’s uncover these differences so that you can make a more informed decision.
What is an estate agent?
An estate agent is a professional in the immovable property sphere. They deal exclusively with the buying and selling of residential and commercial properties, representing property buyers, marketing properties for sale, dealing with banks, conveyancers and solicitors, negotiating purchase prices and more.
What is a letting agent?
A letting agent is another type of professional in the immovable property space. However, as opposed to dealing with the sale and transfer of immovable property, they deal with residential and commercial property lettings or rentals. These are short-terms leases where tenants use the space in exchange for paying monthly rental fees.
What do estate agents do?
If you are wondering what an estate agent is responsible for, you’ve come to the right place. Here, we outline a few of the key duties of an estate agent in the UK to help you get an idea of what the job entails. Examples of some of the responsibilities of an estate agent include:
- Valuing properties
- Managing negotiations around property sales
- Implementing professional marketing strategies
- Conducting viewings and showing clients around properties
- Preparing accurate property descriptions for marketing purposes
- Gathering client information
- Marketing their estate agency franchise
- Locating and securing properties for sale
- Market residential and commercial properties for sale
- Performing real estate market analysis
- Carrying out property surveys
- Sales administration
- And more
What do letting agents do?
Having covered some of the main responsibilities of an estate agent, let’s look at what is a letting agent responsible for. Letting agent responsibilities may seem similar to those of an estate agent because they both deal with immovable property. However, there are fundamental differences worth considering. Let’s explore some of their main duties below:
- Offering “fully-managed” services
- Finding and referencing tenants
- Rent collection
- Evictions
- Maintenance and repairs
- Certifications and regulations
What do you need to become an estate agent vs a letting agent?
Are there any differences in the qualifications, knowledge and skills one needs to become a letting agent vs estate agent? We answer this question below.
Qualifications
Estate agent: There are no formal education requirements for becoming an estate agent in the UK. However, it is highly advisable that one enrols in courses that help with customer service, sales, negotiations, photography, marketing and more.
Letting agent: Letting agents, on the other hand, are required to obtain certain qualifications in Scotland and Wales, although there are no such requirements in England. Furthermore, to boost your chances of success, you can pursue additional certifications in the spheres of property management, real estate and/or business management, which can prove to be very useful in your career and enhance your credibility in the industry.
Knowledge
Estate agent: Completing sales courses and undergoing professional training or apprenticeships are excellent ways for you to solidify your career in real estate.
Letting agent: While letting agents are also not required to pursue formal qualifications, knowledge of the industry such as sales, health and safety regulations relating to properties, general law and legal aspects of letting properties, best property-letting practices, property management practices plus customer service and management, among others.
Skills
Estate agent: Essential skills for becoming a successful estate agent include: customer service skills, sales, independent work, being thorough and paying attention to details, persuasion and negotiation skills, persistence, determination, being open to feedback and criticism, work well under pressure, excellent verbal communication skills, technology-related skills to work with and use computers and specialist software packages.
Letting agent: As for letting agents, communication skills are critical. These agents should also be persuasive and be capable of negotiating. They should take initiative and also have customer service skills. Other key skills include: collecting ongoing rental payments, business administration, tenant reference checks, selecting suitable tenants, active listening skills, advising clients about the letting process, arranging maintenance work, attention to detail, preparing inventories, drawing up letting agreements, IT skills, marketing, accounting, etc.
How do estate agents get paid?
In general, estate agents in the UK are paid a commission for every property sale they help facilitate. The commission percentage will vary, depending on numerous factors, including the final property sales price, the previously agreed-upon commission percentage, the standard rates of the estate agent franchise they work for and others.
Depending on the success of the estate agents, commission is usually uncapped. In addition, if you are curious about how much estate agents earn in the UK, it is important to note that estate agents that work as part of a real estate franchise can earn lucrative commissions.
How do letting agents get paid?
Letting agents can also be paid commissions for their services. However, in this case, it is important to distinguish between flat fees and commission-based payments. For example, a letting agent that offers a fully-managed service may charge a flat monthly fee for managing every aspect of the rental process for a landlord.
However, if they do not offer a fully-managed service, they may take a percentage commission on the first month’s rent, for example, depending on the rules that guide their commission as part of their work within a letting agency franchise.
How to become an estate agent
It is easy to become an estate agent with no experience in the UK. You simply need to partner with the right estate agency franchise to embark on your journey to business ownership with a trusted business partner at your side. You simply need the willingness to put in the work and an alignment with the franchisor’s vision and goals.
Also worth considering is the cost of buying your own estate agency franchise and the terms and conditions associated with the commission percentage you will expect to earn once you get started. Some franchises, such as the Belvoir Franchise Group, offer lucrative commissions and attractive franchise packages at affordable costs that you should definitely consider.
How to become a letting agent
The road to becoming a letting agent is also quite accessible. With no formal training or qualifications required, it also offers a great path to business ownership when you choose to buy into a letting agent franchise.
Ideally, you’ll want to put in some work before getting started by doing a few critical courses vital for the role. You may also want to work as an apprentice first to gain the necessary skills, experience and knowledge that will set you up for success.
Can I be both an estate and a letting agent?
If you are wondering whether you can be both an estate and letting agent in the UK, the short answer is yes. While both of these roles deal with immovable property, as mentioned above, the roles and responsibilities differ quite significantly. For capital value and stability, lettings are favoured. For higher profit and turnover, the estate agency route is preferred.
However, market fluctuations which might encourage pursuing both options at the same time. And if you feel that you can handle both roles, feel free to explore property franchise opportunities that give you the freedom to make the most out of this industry.
Conclusion
For those among you interested in the lucrative property industry and want to get started as an estate agent or a letting agent, the good news is that you can always partner with an industry leading franchise to help realise your personal and professional aspirations.
With the Belvoir Franchise Group at your side, offering extensive franchisee training and support, your journey on the road to working in the immovable property space will become a seamless experience.
To find out more about the opportunities we offer to become a franchisee with us, simply reach out and get in touch. Our friendly and approachable team is at your disposal, ready to assist in every way we can.
