What has the recent election result got to do with selling your letting agency? A lot, as it happens. It doesn’t matter what you think about the result, just that we have one.
Because with a definitive election result, the cloud of uncertainty that has hung over the country since the Brexit vote has lifted.
Letting agency prices plummeted following the Brexit referendum but they are now higher than they’ve been since that fateful vote because with a clear path ahead for the country, people now feel confident about what the future holds, confident enough to make decisions, confident enough to buy your letting agency.
2020 will see you get a higher price for your letting agency than at any point in the last 3 years
With a surge in buyers, you’ll be able to sell for a higher price in 2020 and have more money to start your next adventure, whether that’s setting up a new business or enjoying your retirement.
But the recent election result isn’t the only reason why selling in 2020 is a good idea.
4 more reasons why it’s time to sell
- Profit margins continue to drop
Legislation and tax changes have chipped away at the profit margins of letting agencies, and there is simply no turning back the clock on these changes. You’re working longer hours year on year and likely seeing less return on your efforts. At some point soon, there simply won’t be a return to be had.
- Landlords are selling up
Growing regulation means being a landlord isn’t as easy or profitable as it used to be: rising administration, more stringent minimum energy efficiency standards, banning orders, to name just a few of the added burdens. It’s no wonder that more and more landlords are selling up, shrinking your future income sources.
- It’s easier than ever to fall foul of compliance
Legislation is becoming ever more complex, with frankly disproportionate fines for even minor lapses in compliance. The regulators are watching everything you’re doing; and one small mistake could mean that you lose everything.
- Consolidation of the market is happening now
Take those first 3 reasons and it isn’t hard to see that making it as a small or medium-sized letting agency is a struggle. Bigger chains have economies of scale you simply can’t compete with and in the next 10 years, there will only be the big fish left. Selling up now gives you the best chance of getting a decent price before the inevitable march of consolidation devalues your agency.
Now you know why 2020 is the year to sell your letting agency, how can you make sure you get the best price for it?
It’s simple. With Adam J Walker & Associates you get the best sale price, the smoothest sale process and the best start to 2020. We also provide consultancy services to get your letting agency sales-ready if you’re looking to sell in the future.