Conditions for Opening a Real Estate Company. How to Open a Real Estate Company: Step-by-step instructions
Today the real estate market is created almost all over the world, so it is not surprising that more and more real estate agencies are opening up. This fact alone testifies to the high profitability of the real estate industry.
There are some important aspects that you need to know before starting this business and enjoy the benefits of registering a company in India.
The tricks to running this business
The easiest and most proven way to successful business – this is the path with a person who already has a lot of experience in this area. If you do not have a reliable and experienced partner, you can buy a ready-made company.
There are both pros and cons when buying a real estate company. One hundred percent increase in financial costs for the start-up. The downside is buying the so-called “big in a poke”. There is no way to find out the true history of the company and the professional level of the staff is not clear. For a company that has lost its reputation in the eyes of customers, it is very difficult to rise, and it is worth considering.
Opening your own company is a very proven, but very long and expensive way.
Since the real estate business is not licensed , to open a real estate company, you do not have to avoid a myriad of different powers. It is necessary to collect the traditional set of documents – register a business company tax office, rent an office. In the future, wages and advertising will require a budget.
Operating policies of a real estate company
Real estate companies specialize in the following areas:
- Long-term rent;
- Short-term rent;
- Daily rent;
- Real estate buying and selling.
It is very convenient and desirable when the agency operates in one area of the market – local housing stock, commercial real estate, suburban real estate, foreign real estate, apartment rental and so on.
Before deciding the direction of work, there is a reason to conduct market research to identify the most profitable area.
Companies often offer additional services that not only bring in significant revenue, but also help attract more customers and gain a better reputation. These services include:
- The advice of a professional lawyer;
- Redesign integration of objects;
- Transfer of housing shares to non-residents;
- The system of protection of mutual settlements between the buyer and the seller;
- Transport services and so on.
The main profit for the agencies is paid by the commissions from various transactions related to real estate. As a rule, it is 4 to 8% of each transaction … Many companies, for their own benefit, set fixed prices for a small transaction amount. A real estate company can be called successful, earning 20 thousand dollars a month.
Numerous real estate companies continue to open, with the same number closing. The work is being stopped for a number of reasons. Often, this is due to a non-competitive or initially misguided approach.
Stage-by-stage opening of the agency
There are difference formats where you can register for a law firm today – OJSC, CJSC, LLC, Individual Entrepreneur and many more. For a real estate company, the choice often stops at OOO .
You will need the following documents:
- Application Form 11001 – Establishing an LLC with a notarized signature on the state register . The direction of the process is also indicated there.
- LLC Charter.
- Decision to establish LLC No. 1. If there are other founders – Note of the Federation with Meeting No. 1.
- Receipt of payment of state duty to register the LLC.
The company must be registered as a taxpayer and receive the relevant documents within five days. You must open a bank account and provide information about it to the tax office.
After registering a business and obtaining all the required documents the following steps should be taken:
- Select the appropriate office for all types and conclude the lease agreement.
- Organized office space: Need to buy office furniture for staff and equipment – multiple PCs, a server with an agency database, a printer, a fax.
Do not forget to connect to the Internet and your own mini PPX, because the operating principle refers to the constant phone conversation with customers. PPX should be set up so that all incoming calls go to the promotional phone, and outgoing calls from employees are made from additional lines. You need to choose an easy and memorable phone number.
- Staff appointment. Since the company is not yet promoted and does not have an established customer base, for the first time, five or six employees and one sender will suffice, its process will include receiving phone calls, delivering customers and keeping track of completed transactions.
Needless to say it is better to include in a team than well-trained and experienced staff. But experience should not be a decisive factor, it is important for people to be positive and not seek to justify their failures by various external factors. The career and commitment of the workers of a new real estate agency is one of the most important aspects in which it is better not to be economical.
- Advertising and creating a good name for the real estate company.
Working in foreign real estate
Recently, more and more Russians are showing interest in residential and commercial real estate abroad. Some people simply want to buy a home abroad, but there are more ambitious individuals who want to arrange their own business to work with overseas real estate.
A newcomer who has never handled real estate abroad is unlikely to win the market in this move. After all, even to get a license, you need documentary evidence of experience in this area … and the work can be done remotely, which is very difficult without real sales experience.
To open a real estate company overseas, you must first find trusted developers or partners among trusted colleagues from abroad.
The partner business of a foreign company involves the following steps:
- A partner from abroad prepares all the necessary complete information about foreign real estate objects, detailed description, plans, photos, drawings and many more.
- A local partner builds a good website and fills it with available information and customer searches. Once the customer is found, he makes all the preparations for the transaction between the buyer and the foreign partner.
Print publications or radio and television do not have a strong advertising effect on doing business in foreign real estate such as the Internet, so the main focus should be on the World Wide Web.
Analyzing the preferences of Russians interested in foreign homes, the most popular countries are Croatia, Turkey, Bulgaria and Latvia. Most often, they want to buy cheap houses and apartments by sea, as well as residential and commercial real estate in the capitals and tourist centers, which are then rented out.
Specializes in rental housing
As practice shows, a real estate rental business idea is very successful. As the demand for rental housing and commercial premises continues to increase steadily, so does the number of projects.
But, as with any business, here are the nuances that every new entrepreneur should know, which is aimed at the success of the company:
- Investments are essential. This is especially true for the daily rental issue of renting real estate profitably, you must first prepare it, carry out renovation work, buy decent furniture, etc.
- It is important to register the activity to avoid legal issues and unforeseen costs. Because it is not difficult to register and the vision given activities are not licensed, in this case you are guaranteed a good and restful sleep.
- It is not necessary to carry out complete and costly repairs to the apartment. Many cosmetic procedures can be done by yourself, and furniture and equipment can be used that have served their time and that you do not need. In the future, in the course of business growth, large infusions may be allowed.
This business considers steady growth and, as a result, an increase in profits. For example, in the future you can start building a house and rent it out.
Responsibilities and Risks of Doing the Real Estate Business
Doing a real estate business involves liability and associated risks. And there are a lot of risks associated with civil law, tax, financial surveillance activities, FAS, criminal law and other
When concluding a contract, the company calls it a “warranty,” which describes all the obligations of the company to the customer. Therefore, it is very important to hire a good lawyer for the job is a high level professional, who can draw a contract efficiently and take into account all the nuances.
Therefore, the main risks of the business are:
- Civil legal risks. The transaction is likely to be invalid. When a transaction is made for a purpose that is contrary to the foundations of law and order and morals, imaginary or hypocritical, by an incompetent, incompetent person or a minor, under the guise of deception, violence, delusion and other factors that prevent adequate decision making, etc … nothing is known It often happens that third parties, for example, relatives, ex-spouses and others, start challenging the transaction.
- Opposition party risks.
- Risks associated with the activities of the Financial Monitoring Service.
- Risks associated with the activities of the Federal Antimonopoly Service.
As practice confirms, in unforeseen circumstances, if this obligation is not stated in the contract, it is very difficult to recover the amount from the real estate company through the court for the lost property. You can reimburse the cost of providing the services.
How to create a customer base?
To quickly build a customer base and provide a steady income through it, you should use the following steps:
- Everyone has known for a long time that advertising is the engine of business. You need to make sure that as many people as possible know about the agency in advance.
Advertisements should be submitted to popular news sources such as many major newspapers and magazines, television and radio and the Internet. You can distribute flyers and post ads. Advertising with photos of real estate products can be useful. The main ad is the main identity of the agency. She wants to catch the eyes of passers-by and not get lost, so it is worth paying attention to the pictures of the optimal size and colors.
- As far as the company’s website is concerned (it should be required), it is important that the website is of high quality, inspiring confidence and attracting the attention of as many internet users as possible. In addition to the basic information about the agency, it should not be exaggerated Additional information is interesting to potential customers. Customers will be inspired by employee compliments and many stories about well-done deals. It is necessary to place photos of staff and director on the site. Do not forget about business cards, stationery with branded logo and other small things that will allow you to win the attention of customers.
- Having a valuable office in a place with a high concentration of potential customers is one of the key conditions. As a rule, it is located near the city center or large shopping centers, metro stations, traffic stops. It is worth considering that renting premises in the center can be significantly more expensive. After all, choosing an office in the first row of houses is essential. The entrance should be located on the ground floor from the street because the entrance from the yard automatically blocks the way for many customers – it is very difficult to notice the sign in the yard.
- The client should definitely be comfortable in the office, which is facilitated by a pleasant interior, fresh scent and order. Optimal temperature air, various comfortable accessories, indoor and fresh cut flowers. You can offer tea or coffee to the audience, which will benefit your reputation.
- The film is being made slowly, but in the future it will yield significant results. Diplomas, certificates, licenses should be hung in a clear place. Workers’ uniforms must be personal
- With a professional approach staff working with those in charge, the customer base will not make you wait.
When opening a company, you should consider the following costs:
- Wage … Real estate managers usually receive a commission of 30-60% on each transaction completed. The director, accountant, lawyer, dispatcher, cleaner and other staff receive a fixed salary, which is set according to the rates prevailing in the labor market.
- Office space rental – about 15-20 thousand rubles.
- Computers, printer, fax, cash register and other equipment – about 60-80 thousand rubles.
- Software – from 20-30 thousand rubles.
- Advertising – 5-15 thousand rubles a month.
The profitability of a company depends on the size of the business, the size of the investment and the professionalism of the employees.