Has anyone got any clients that are in the Propert Lettings business??
I have a friend who has one and I may be offering my services soon, so was wondering what is involved in the bookkkeeping and is it a very lucrative business?? I know it depends on where you live, but we are in the South East, so the rents are quite high down here. And I believe there are alot of landlords with multi properties.
Also I believe you have to hold a deposit for the tenants in a separate account?
Any information would be as always greatly appreciated as I am doing my homework on this one.
Hi, I've done bookkeeping for property letting companies,
Most that I've done use a CARL system that is basically bookkeeping software specifically aimed at property lettings businesses. This allows you to manage the rents received, expenses paid for repairs etc to the property & the deductions for the commission of the letting agent. This will give the net amount that should be transferred to the property owner.
Deposits paid by the tenants should be transferred to the deposit protection scheme, I now believe that this is a legal requirement.
Did you have to use their CARL system or did you use your own bookkeeping software? I'm looking into targeting this industry too but it sounds like it is not possible to get them as clients unless you use their CARL system...
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I had to use their CARL system for the bookkeeping but although this is good for them, it isn't great for accountants. To do management accounts I got the print outs from the CARL system and used my own software. We couldn't get them to use any other software as it suits their needs perfectly so I can't see you getting them as clients without using CARL to be perfectly honest.
Thanks for the replies, are they lucrative businesses in general? Just trying to gauge how much paperwork could be involved.
I've heard of the deposit protection scheme what does it entail? Is it like a separate bank account that is held by a company outside the lettings agents?
Lastly how much would CARL set you back if you had to purchase the package yourself and is it multi company, or is it like SAGE instants where is it just a single company?
Someone said the some of the software that they can use is a little bit like sage? Would you say it was or not?
They basically make there money from finders fees and take a percentage of the gross monthly rent. Depends on how big the letting agent is to how much paperwork there will be. The letting agent should really pay for the software as they can't really process without it. It costs around about £40 plus vat a month.
The deposit protect scheme is an outside government backed agency that hold on to deposits, so basically a different bank account that someone else looks after.
I believe CARL is a single user package but I'm not 100% sure, its definitely not like sage from what I remember of it.
Hi, I've done bookkeeping for property letting companies,
Most that I've done use a CARL system that is basically bookkeeping software specifically aimed at property lettings businesses. This allows you to manage the rents received, expenses paid for repairs etc to the property & the deductions for the commission of the letting agent. This will give the net amount that should be transferred to the property owner.
Deposits paid by the tenants should be transferred to the deposit protection scheme, I now believe that this is a legal requirement.
