How to Start a Letting Agency: Steps to Success  

Setting up a new letting agency can be a challenging, yet highly rewarding process. In this guide, we look at what you need to do to create a thriving and legally compliant business, from professional training and business planning to insurance and professional registration. Also, discover why joining Landlord & Tenant Protection can help you deliver a more efficient business with strong landlord and tenant relationships.  

Get the right skills and qualifications  

If you want to start a letting agency, make sure you have the skills and training required to make it a success. 

Personal skills  

Here are the personal skills you will need to work on to run a lettings agency: 

• Interpersonal skills – to build trust by communicating with various types of clients confidently and diplomatically  

• Active listening – to gain a full understanding of your clients’ needs and requirements 

• Negotiation skills – to manage expectations of landlords and tenants 

• Resilience – to work effectively under pressure 

• Problem-solving – to come up with solutions to challenges 

• Organisational skills – to efficiently manage multiple tasks and responsibilities 

• Attention to detail – to avoid mistakes, especially in legal documentation and processes 

• Literacy, numeracy and computer skills – to perform essential business operations.  

Professional training and qualifications 

There are many organisations that offer qualifications for new and existing letting agents, although legal requirements differ across the UK: 

• There is no mandatory qualification to become a letting agent in England or Northern Ireland, although formal training is recommended.  

• If you are based in or operate in Wales, you must complete Landlord/Agent Training through Rent Smart Wales or an approved provider. 

• If you are based in or operate in Scotland, you must complete a relevant qualification at level 6 of the Scottish Credit and Qualifications Framework (SCQF), such as the LETWELL programme. 

 Here are some popular examples of professional bodies and relevant training they offer:  

• Propertymark: Award in Introduction to Residential Property Management Practice 

• Chartered Institute of Housing (CIH): CIH Level 2 Award in Letting and Managing Residential Property 

• National Residential Landlords Association (NRLA): Managing Property and Residential Lettings Level 3 Certificate 

• safeagent: Foundation Lettings Course. 

Formulate a strong business plan 

When starting your letting agency, you must create a clear business plan that outlines: 

• An overview of your business 

• Your business goals and objectives 

• What makes your business unique 

• Your target audience/s 

• Insights from market research and analysis 

• Operational plan (how your business will work from day to day) 

• Financial plan 

• Budget including resource requirements 

• Short-, medium- and long-term projections 

• How much investment you need (if relevant) 

• Marketing strategy 

• How you will remain compliant. 

Register your business 

You can run your agency as a sole trader or an incorporated business. Here is the difference in simple terms: 

• As a sole trader, you and your business are the same legal entity 

• As an incorporated company, you and your business are separate legal entities. 

You should seek appropriate legal and tax advice to decide the best option for you.  

If you decide to incorporate your lettings agency, you must register with Companies House –the government agency that maintains a public record of company details and ensures transparency and legal compliance.  

Whether you operate as a sole trader or an incorporated company, you must also register with HMRC. HM Revenue and Customers sets legal tax requirements for businesses in the UK.  

Industry-specific registrations 

Letting agencies in Scotland and Wales must register with a professional body. In Northern Ireland, you only need to register if you plan to manage properties on behalf of landlords. Agents in England are not required to register with a professional body, although it is recommended that you join an accreditation scheme. 

Here are the relevant registers and schemes: 

• Scotland: Scottish Letting Agent Register 

• Wales: Rent Smart Wales 

• Northern Ireland: Landlord Registration Scheme  

• England: safeagents or Propertymark. 

There are also industry-specific registration requirements in the UK, such as joining a: 

• Redress scheme  

• Tenancy deposit scheme  

• Client Money Protection (CMP) scheme. 

In Scotland, you must also abide by the Letting Agent Code of Practice. 

Purchase business insurance 

There are several types of insurance you will need to protect your lettings business. The specific cover you need will depend on your location, requirements and specific operation model. Some insurance policies may offer multiple types of insurance under a single premium. 

Here are the main types of insurance you should consider for your lettings agency: 

• Professional indemnity insurance – protection against claims of professional negligence, errors, or omissions in the services provided 

• Public liability insurance – legal expenses and compensation if a member of the public is hurt or injured on your property or while you are conducting business with them  

• Employer’s liability insurance – legal expenses and compensation if an employee is injured or becomes ill because of work (this insurance is mandatory if you employ staff) 

• Buildings and contents insurance – to protect your office, if you have one, and its contents  

• Cyber insurance – protection against financial loss due to hackers or other cyber attacks 

• Directors’ and officers’ insurance (D&O) – to protect the personal assets of directors and officers if they are sued while managing the company 

• Legal expenses insurance – to cover costs associated with eviction proceedings or contract disputes 
• Business disruption insurance – compensation for lost revenue due to natural disasters or emergencies such as fires, floods and storm damage.  

Establish your presence 

When your letting agency is off the ground, or beginning to take shape, you will need to find the most appropriate business premises for your budget.  

A central location will garner higher levels of everyday foot traffic but will also come with higher rents and annual running costs. You should also take a greater look at your target audience and where they are likely to reside, versus staff pay. 

You may prefer to operate as an online-only letting agency, meaning there is no publicly accessible office. This means you simply need office space at home (if allowed in your tenancy agreement or leasehold or freehold property) or a commercial building. 

Whether or not you have a physical ‘storefront’, it is important to invest in a user-friendly website so you can share property listings. There are many companies that specialise in lettings websites, such as: 

• The Property Jungle 

• Zoopla Websites 

• Agent Vision. 

Promote your letting agency  

There are many channels you should use to promote your business, both traditional and digital, including: 

• Door-drop marketing flyers 

• Advertisements in local newspapers and property magazines 

• Property listing websites, such as Rightmove and Zoopla 

• Social media channels, such as Facebook, Instagram, Twitter and X 

• Google My Business and Apple Maps. 

You should carefully plan your marketing budget to ensure the best reach in your area and to your relevant audiences. If you have never marketed a business before, you should seek advice from a marketing agency to support your business. 

Build your reputation

Ensuring positive relationships is vital for your letting agency’s success. You must clearly communicate how you’ll support landlords and tenants in achieving their goals – importantly, you must follow through on your promises. 

Key practices to build a strong reputation include: 

• Communicating clearly, both in person and online 

• Resolving issues promptly and fairly  

• Transparency – sharing accurate information about processes and pricing 

• Always maintaining professionalism 

• Sharing your expertise with enthusiasm  

• Getting client referrals. 

Join Landlord & Tenant Protection

Landlord & Tenant Protection provides a bespoke lettings management portal to support agents, plus a range of additional services for your landlords and tenants, such as insurance and credit reporting.  

Our bespoke portal allows you to: 

• Easily set up property details online and share an application link with tenants, who can directly upload any required documentation 

• Issue a tenancy agreement and notify landlords and tenants when it is due to end 

• Take a modern approach to tenant referencing via our unique tenant rating system – saving time and energy for everyone involved. 

Learn more about how we support lettings agents across the UK to make their businesses more efficient and to strengthen their relationships with landlords and tenants.