How much does it cost to start a rent to rent business?
How much does it cost to start a rent to rent business?
Today I’m going to explain how much it really costs to set up your rent to rent business.
I see a lot of confusion around this and you might be surprised.
Let's dive in to today’s episode…
These are the things that you need at the start to set up your business.
In this week’s episode I’m covering what you need to pay for when starting your rent to rent business.
In next week’s episode I’ll go over everything you need to set up your legally compliant rent to rent business in more detail.
Formations Company (limited companies only)
£10
You can do this on Companies House free.
We prefer Formations Company.
Public liability and professional indemnity insurance
Approx. £200
By law you need these insurances for your business.
The amount will vary according to your needs.
It’s important to have an insurer who understands rent to rent.
Property Redress Scheme
£150
Again, by law you need to be a member one of the government approved Property Ombudsman Scheme’s.
We choose the PRS because it’s best value.
Information Commissioner’s Office
£40
This is again a legal requirement to handle data securely.
Website Domain
£20
Landing page
£50
A webpage and business email address is not essential but we advise you do have.
Simple and inexpensive to set up. Why wouldn’t you?
Your webpage is your online home for letting agents and landlords who want to check you out.
Mostly for 1st year GoDaddy is charging 99p.
And you can DIY your site on Wix or similar.
We use Squarespace. I’ve included this as £50 as you may prefer to ask someone on fiverr or similar to create your webpage.
Contact information
G Suite £4
Virtual landline £10
For email and telephone your costs might be zero.
You can choose to use your existing email e.g you@gmail.com
But it’s looks more professional to have you@yourbusiness.com.
We like GSuite for this. No one does email better than google. And they’ve made it easy for you to have as many addresses as you like to the same inbox.
For example:
you@yourbusiness.com
yourbusinesspartner@yourbusiness.com
hello@yourbusiness.com
And a virtual landline - it’s useful to have a landline telephone number which diverts to your mobile.
Looking good
Logo and business card design £50
Business card printing £50
This is up to you.
Having a physical card is optional in digital age, but I think it’s good to have something to leave with people, so I say yes do it.
Again you can DIY the design if you’re on a tight budget and and you can print inexpensively.
Let me summarise the Rent to Rent Business Start Up Costs for you.
Formations Company (limited companies only) £10
Public liability and professional indemnity insurance £200
Property Redress Scheme £150
Information Commissioner’s Office £40
Domain £20
Website landing page £50
G Suite £4
Virtual landline £10
Logo and business card design £50
Business card printing £50
£584
Total under £600
When you have a property, you will have other costs - usually first month’s rent and deposit and any refurb required.
Refurbs on average are anywhere between nothing at all or around £3,000.
I’ll do an episode all about refurbs and who should pay.
And all you need to know.
That's it for this week.
Were you surprised by the low start up costs?
Most businesses involve much more to set up and have lower returns.
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See you next week.
Stephanie & Nicky
xx
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