WHAT INSURANCE FOR REAL ESTATE PROFESSIONALS?
In Certain countries, the law requires real estate professionals to take out professional liability insurance (RCP) which protects you in the event of significant pecuniary risks, bodily injury and material damage sustained in the course of your activity. PLEASE NOTE: a contract must be signed for each agency and for each agent. The minimum guarantee threshold is set by law at € 76,224.51 per year per insured.
WHAT GUARANTEES?
As soon as you plan to hold funds, effects or securities on behalf of your principals (buyers, sellers, tenants, co-owners, etc.), it is compulsory to take out a financial guarantee. The purpose of this guarantee is to ensure that the funds deposited in your agency are returned to your client in the event of a problem. The amount of the financial guarantee must be at least equal to the sums you owe. The law imposed minimum amounts: 30,000 euros for the first two years of activity, then 110,000 euros for the following years. Note: it is possible to avoid this obligation on condition of signing an act according to which you agree, on your honor, not to touch any funds during the exercise of your activity. Your professional card will then mention this commitment. However, it is hardly possible to open a real estate agency without ever receiving any funds. To subscribe to a financial guarantee, it is possible to apply to a bank, insurance company or credit institution, which means providing a deposit for the launch of your real estate agent activity. Besides these many compulsory legal and administrative procedures, there are other stages that you should know and above all that you should not overlook.
KNOWLEDGE OF THE REAL ESTATE MARKET
There is a decrease in the renewal of housing on the part of households, due to the increase in the cost of real estate and significant social fluctuations. However, not all geographic areas are created equal and the real estate market is not the same everywhere. A market study must therefore be conducted, as to the number of real estate agencies in the area where you want to settle, but also as to the cost of real estate as well as the real existing opportunities like brand Tamansari Rawang.
OPEN AN INDEPENDENT OR FRANCHISED REAL ESTATE AGENCY?
These two models have advantages and disadvantages, while the administrative procedures are identical. An independent real estate agency The main advantage is obviously to be able to manage your own agency, to be your own boss and not to account to anyone. However, creating your own real estate agency requires many efforts, both personal and financial. The first years are decisive and crucial for the future. You will have to offer a high added value and be very attractive to build a reputation and thus attract with confidence your first customers. A Franchise You will benefit from the reputation of the franchise because you integrate into this network. A well-known brand is more accessible because it inspires more confidence. The other advantage is that a franchisor can offer you training but also strengthen your knowledge of the surrounding market. However, access to a franchise generates certain costs, such as entry fees and / or a fee in exchange for the use of the brand. A percentage of your sales must also be paid to the franchise.
THE CHOICE OF PREMISES TO OPEN YOUR REAL ESTATE AGENCY
To open your real estate agency, you must first ask yourself questions: what budget? What surface? A purchase or a rental? Which geographic area? Define your need You must define your needs as well as those of your future clientele. We must therefore define the latter: who are you targeting? Individuals or businesses? The geographic area as well as the space you will need will have to be determined too. It is advisable to choose a room with a large window where you can display as many ads as possible. In addition, the interior must be spacious enough with a reception room for your customers. What location? Your location must be strategically chosen. It is advisable to locate in the city center, or at least where your potential clientele is likely to pass in front of your real estate agency. The choice of the city itself is also very important. This is why a market study is necessary beforehand regarding the number of your competitors and the real estate market in general. After having brewed all of these long steps, to be accompanied for the creation of your business, namely your real estate agency is advised to the extent that some may escape you. It is a long-term investment because it allows you to avoid unpleasant surprises and possible disputes that could arise, but above all to be able to have advice tailored to your needs, your situation and your expectations.
Peter Beaumont is a senior reporter on the Guardian’s Global Development desk. He has reported extensively from conflict zones including Africa, the Balkans and the Middle East and is the author of The Secret Life of War: Journeys Through Modern Conflict. Email: peter@thehearus.com
