Propertyscouts NZ Ltd
Propertyscouts Guaranteed Rent

Contact the Propertyscouts Auckland team on

0800 651 851

FAQs

FAQs

 

What do I need to set up a franchise?

Set up requirements

  • Lockable cupboard/cabinet for keys (and other key equipment like key tags etc)
  • Incorporation of a company (should you choose to structure the business this way) & your legal fees
  • PC or laptop
  • Vehicle - preferably a sign written Nissan Cube
  • Printer with scanning function
  • Smart phone - preferably an iPhone as this interfaces with our software
  • Camera to take photographs for advertising
  • Initial collateral printing costs (e.g. brochure ware etc.)  Approximately $950 for the first year.
  • Uniform jacket $95

What are the ongoing costs?

Ongoing costs

  • Royalty of 7% on gross revenue
  • Property management software - paid by us for first three months, following that $195 per month for one sign in
  • Bank fees - you will be able to use standard Internet Banking at the outset, but as you have more outward transactions, you'll want to look to move to Internet Banking for Business. It does cost, but it definitely is worth it in terms of time savings.
  • Business insurance
  • Vehicle expenses
  • Phone & internet
  • Website maintenance costs
  • Printing & stationery
  • Property advertising e.g. Trade Me etc. (however the owner covers the cost of this once the property is rented)
  • Accounting fees - you'll likely need to engage an accountant at some stage within your first year unless you plan on doing this yourself.

 

There’s already lots of property managers. Is there room for more?

The chances are that there will be substantial competition, however there are a couple of things to bear in mind:

  • The property management industry in New Zealand is continuing to grow as more investors look to have their properties looked after by professional property managers. Changes to various NZ laws are making it a lot harder for private landlords to manage their rental properties.
  • We find that in most places, there are a number of property managers, but there will be a large proportion that (a) don't do a great job of it or (b) are very small and not looking to grow.
  • We now have a strong nationwide brand with our key point of difference being our guaranteed rent offering to investors - this is a huge attention grabber and is a great way to encourage contact from owners looking for a property manager. There are a number of other parts of our business that we do differently to other property managers, but our straight forward guaranteed rent is significant from a client perspective.

 

How much can I expect to earn in the first year?

  • This is a common question but not easily answered. The answer is very dependent on the individual franchisee/s.  A start up business should allow for minimal income in the first 0 - 6 months of operation.

 

Can I start part-time and move to full time at a later date?

  •  The simple answer to this question is no, although we appreciate there may be instances where this is appropriate and the disadvantages can be mitigated. 
  •  We prefer individuals to work in their Propertyscouts business on a fulltime basis once they have finished training.  Most franchisees are actually couples with one person working in the franchise fulltime and the other remaining in fulltime employment until the franchise can support them both.

 

Do I need an office or can the business be run from home?

  •  The business model is ideal to run out of a home office until such time as you out grown it, which normally happens when you get to the stage of hiring staff.  Presently three of the Propertyscouts franchises operate from commercial offices and the remainder from home offices.

 

Who is the ideal franchisee?

  • They have an interest in residential property
  • They may have experience in renting, either as a landlord, or even as a tenant
  • They understand and are prepared for the ‘roller-coaster’ ride and hard work it takes to be successful
  • They have sufficient financial resources for the start-up period
  • They will stick to the franchise plan and processes in the operations manual

 

What are the risks?

A Propertyscouts business is actually very low risk when compared to other industry/business. 

  •    No debtors
  •    Minimal fixed assets
  •    Very little plant and equipment to provide capital for – or maintain and replace
  •    No stock
  •    Easily forecasted annual revenue streams
  •    Multiple income streams

 

If I proceed with a franchise what are some of the highlights I can look forward to?

  • Your own territory with exclusive use of the Propertyscouts branding 
  • Your own website
  • Assistance with market research and business planning
  • The Propertyscouts operations manual (the bible) a complete a - z of property management (updated annualy)
  • Full on-site  training 
  • National buying stratagies
  • Full access to other franchisees
  • The benefits of national marketing stratagies
  • 24/7 head office support
  • Subsidised annual conference

 

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