You’ve been thinking about starting your own lettings agency. Maybe you’re tired of making money for someone else, or perhaps you’ve spotted a gap in your local market. Either way, you’re facing a big decision: should you go it alone or join a franchise?
It’s a choice that will shape everything about your business, from your daily routine to your long-term profits. Both paths can lead to success, but they suit different people and situations. ROOMS® franchise, for instance, specialises exclusively in letting and managing individual rooms within shared accommodation (HMOs), offering a different approach to traditional estate agency models. Let’s break down what each option really means for you.
What You Get with a Property Franchise
Buying into a franchise means purchasing a ready-made business system. Think of it as buying a recipe that’s already been perfected, and you just need to follow it.
Everything’s Figured Out
Franchises have already made the expensive mistakes. They’ve worked out the best way to do valuations, handle difficult sales, and manage the endless paperwork. You get all these tried-and-tested systems from day one.
Help When You Need It
Good franchises don’t just train you and wave goodbye. They provide ongoing support when things get tricky, which in property, happens more often than you’d like.
With a franchise, you’ve got experienced people to call who’ve dealt with this exact situation before.
Marketing That Works
Let’s be honest, most independent estate agents’ marketing looks pretty amateur. Franchises pool money to create professional campaigns and websites that actually bring in leads. You get the benefit of big-budget marketing without the big budget.
Tech Without the Headache
Setting up property software, getting on the portals, managing a CRM system…it’s complicated and expensive. Franchises typically sort all this out for you, with training included. That’s months of work and thousands of pounds you don’t have to worry about.
Going Independent: The Freedom Route
Running your own agency means being your own boss in every sense. No rules, no head office, no sharing your profits—but also no safety net.
Your Business, Your Rules
Want to specialise in quirky properties? Fancy trying a completely different fee structure? As an independent, you can do whatever you think will work. If you’ve got strong ideas about how things should be done, this freedom is priceless.
You can adapt instantly to what your local market needs without asking anyone’s permission.
Keep What You Earn
No franchise fees means more money in your pocket, in theory. Yes, you keep 100% of your revenue, but remember you’re also paying 100% of the costs. Still, once you’re established, those savings really add up.
Move Fast
See an opportunity? Grab it. Market changing? Adapt immediately. Without corporate approval processes, you can turn on a sixpence. In a fast-moving market, this flexibility can be a massive advantage.
Build Something That’s Yours
There’s something special about building a business from scratch. Every success is yours, every five-star review validates your approach, and if you decide to sell one day, you’re selling something you created.
Let’s Talk Money
The financial side needs careful thought as it’ll affect your life for years to come.
Starting Costs
Franchises typically charge £12,000-£50,000 upfront. That sounds like a lot, but it usually includes:
- Full training programme
- Your website and marketing materials
- Software setup
- Ongoing support
Going independent looks cheaper at first, but add up:
- Professional website (£3,000-£10,000)
- Branding and marketing materials (£2,000-£5,000)
- Software and systems (£3,000-£8,000)
- Training and development (£2,000-£5,000)
Suddenly, the gap doesn’t look so big.
Ongoing Fees
This is where the real difference shows. Franchises typically take 5-8% of everything you earn, plus marketing contributions. On a £500,000 turnover, that’s £30,000-£40,000 every year.
But if their support helps you earn £500,000 instead of £350,000, are you really worse off?
How Quickly Will You Make Money?
Most franchisees start making a profit within 6-12 months. Their brand recognition and systems help them hit the ground running.
Independent agencies usually take 12-24 months to become profitable. Building a reputation takes time. However, after a few years, successful independents often earn more because they’re not sharing their profits.
Myths That Need Busting
“Franchises stop you earning big money” Not necessarily. Yes, you pay fees, but good franchises help you earn more through better systems and more leads. Many franchisees do very well indeed.
“Going independent is always more profitable” Only if you know what you’re doing. Plenty of independents struggle because they underestimate how hard it is to build a business from scratch.
“Independent is easier—no rules!” Actually, making every decision yourself can be exhausting. Sometimes, having a proven system to follow makes life much simpler.
Is a Franchise Right for You?
Franchising might suit you if:
- You’re new to property or running a business
- You want to focus on selling, not admin
- You need to earn money fairly quickly
- You like having clear systems to follow
- You value having backup when things go wrong
Should You Go Independent?
Independence might work better if:
- You’ve got solid property and business experience
- You have very specific ideas about how to run things
- You’re comfortable with risk and uncertainty
- You can afford to wait longer for profits
- You want complete control over everything
The Value of Support
Here’s something people often overlook: property can get complicated. Deals fall through, regulations change, and sometimes you’ll face situations you’ve never seen before.
With a franchise, you’ve got experts on call. They’ll help with tricky valuations, keep you updated on legal changes, and talk you through difficult situations.
If you go independent, you’ll need to find this support elsewhere, through professional bodies, networking groups, or paid consultants. It’s available, but you’ll have to seek it out.
Also, property is changing fast. Online valuations, virtual viewings, and new marketing channels—staying current is crucial.
Franchises usually provide new technology and training as things evolve. But they can be slow to change because they’re updating entire networks.
Independents can jump on new trends immediately, but they have to spot them first and figure out implementation alone.
Making the Right Choice
There’s no universal right answer. Consider:
Your Experience: New to property? Franchises offer valuable training. Got years under your belt? Maybe you don’t need the hand-holding.
Your Personality: Do you like structure or freedom? Are you comfortable with uncertainty? Be honest about what suits you.
Your Finances: Can you afford franchise fees? Can you afford to wait longer for profits if you go independent? Run the numbers properly.
Your Goals: Want a lifestyle business or plan an empire? Looking for quick returns or playing the long game?
Your Support Network: Going independent can be lonely. Do you have people to turn to for advice?
What Happens Next?
Success in property comes from understanding your market and looking after your clients brilliantly. You can do that as a franchisee or an independent; the business model is just the vehicle.
Choose the one that plays to your strengths and fits your circumstances. Be honest about what you need to succeed, whether that’s the support of a franchise or the freedom of independence.
If you’re leaning towards the support and systems a franchise provides, why not see what’s possible? ROOMS® offers a modern, specialised approach to property franchising, focusing exclusively on shared accommodation (HMOs), comprehensive training, ongoing support, and proven systems to help you build a successful room-letting business.
Find out more about the ROOMS® franchise opportunity and see if their unique shared-accommodation management model could be the right fit for your property ambitions.
