When you want to develop a network of independent real estate agencies in a short space of time, opting for a rental management franchise is a wise strategy.
What is a rental management franchise? How does it work? What are the advantages?
Here’s everything you need to know about this business model.
A rental management franchise is both a concept and a real estate agency joining forces with a national brand to benefit from its expertise, tools and brand.
It’s an attractive option for entrepreneurs wishing to enter the rental property business, as they benefit from brand recognition, training, tools and support.
How do you get started in the rental management business?
(definition, operation and legal aspects)
A rental management franchise is a contract by which the franchisor grants a franchisee the right to exploit its name, brand, methods, expertise, tools and know-how in the field of rental management. Rental management services generally include finding tenants, drafting commercial leases, collecting rents, managing service charges and claims, maintaining the property, and liaising with partner craftsmen. In return, the independent contractor pays the franchisor The rental management market is growing steadily, due to the increasing number of landlords wishing to outsource the management of their properties. This offers franchisees numerous development opportunities. When it comes to franchised rental management, the relationship between franchisor and franchisee is governed by the franchise agreement. This is a commercial contract document governed by the French Commercial Code, which must contain the name and address of the franchisor and franchisee, the purpose and duration of the contract, the rights and obligations of the parties, the conditions of termination, and the royalties payable by the franchisee. In rental management, the cost of a franchise contract varies according to the brand. It generally includes an entry fee of between €10,000 and €30,000 and sales royalties of between 3% and 8%.
What are the advantages for a real estate franchisee?
By choosing gestion locative, franchisees benefit from the reputation and brand image of an established network. Recognition of the brand’s name and reputation is an effective way of attracting customers. What’s more, the initial and ongoing training provided by the franchisor enables you to acquire the skills and knowledge you need in rental management. It also provides access to proven tools and methods for optimizing property management. Franchisees can also benefit from personalized advice and technical assistance for administrative, accounting and legal management. Choosing a rental management franchise means joining a network of real estate professionals and benefiting from synergies and collaboration opportunities. What’s more, access to partnerships negotiated by the franchisor for ancillary services is simplified.
Another significant advantage of rental management for a franchisee is the opportunity to benefit from a potential influx of customers thanks to the franchisor.
By belonging to the network, they also gain easier access to a portfolio of properties to manage.
What’s more, belonging to a network offers greater sales and marketing clout, as well as the opportunity to pool certain resources and services with other franchisees, thereby reducing costs.
What’s more, franchisees benefit from the franchisor’s know-how and experience to develop their business and boost profitability.
With effective tools and methods at their disposal, they can build customer loyalty and prospect for new customers.
What you need to know: independent real estate agencies in France
In France, although the real estate market is dominated by independent estate agencies, franchises are gaining ground, particularly in the rental management sector.
Rental management franchises are attracting many project owners because of the advantages they offer in terms of reputation, support and proven methods.
Rental demand is strong and growing in France, driven by urbanization and household needs.
The profiles of tenants and landlords are varied, requiring expertise and adaptability on the part of rental managers.
It should be emphasized that the real estate sector is subject to strict regulations that must be mastered.
According to a study by the Institut Xerfi, in 2023, the rental management market in France will account for around 13 billion euros in sales.
The number of rental managers was estimated at 22,000, and rental management accounted for an average of 8% of landlords’ rental income.
At the same time, the FNAIM 2024 survey revealed that 90% of landlords have their properties managed by a professional.
The average cost of rental management is 8% of rent received.
