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SQM - January 2008

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A successful entrepreneur and business woman, Susan Fitz-Gibbon has enjoyed a varied career and now owns and runs Fitz-Gibbon, the west London lettings agency. We spoke to her about how she first got into the industry, which direction she thinks the lettings market is going and the enterprising additions to her business.

Interview by Kate Burton

So Susan, to quote Dr Frasier Crane, tell me about yourself.

"I suppose most people would say I am focused and driven - I know what I want and go out to get it. I would suggest I'm a true entrepreneur continuously coming up with new ideas and working on many different projects at once. I love to be buys, both at work and in my social life. With three boys, my husband and I are constantly running around.

"We're all extremely active and share a passion for sailing, water skiing and our speed boat. I love speed so cars are a passion for us all. In the winter all of us ski together, plus we're avid swimmers and cyclists - a particularly good way to walk the dog!

"I believe in giving something back so I'm involved with various charities and endeavour to hold at least four charity events each year to raise money. In 2008 I want to raise awareness of ovarian cancer - so if anyone is reading this and want to contact me, please do"

And now, tell me about your business...

When I started the business I knew that the aim was to be specialised and compete at a high level, offering the best in the industry. I believe that is what Fitz-Gibbon does. We compete with the 'big agencies' head on, but offer a personal service to all our clients and tenants. As a consequence, we have masses of repeat business, loyal clients and tenants, and indeed fantastic dedicated teams, which is something not many companies can boast about these days.

"I founded the business some 20 years ago and obviously the industry has changed tremendously over that time - in many ways for the better. The legislation that has come into force over the years has taken out some of the cowboys, but there is still a lot more that could be done to tighten the reins on many agencies. The government could be doing so much more to encourage the private rented sector to let properties for longer tenancies, but the policies are not in place and there is a fair way to go yet."

What was it do you thing, that prompted you to get involved in estate agency in the beginning - and why lettings over sales?

'The question of lettings over sales never fails to intrigue and I always wanted my own business. I was eight when I told my mother and father I was going to work for myself and being the determined person I am, that is what has happened. However, I was not about to do this until I had some qualifications and experience behind me. I didn't know what the business I was going to run was, so I did the usual secretarial qualifications by way of a back up and then started working in central London whilst considering a career in the marketing or property world.

'Following three years in Norfolk, where I founded a successful body movement business (aerobics etc), I returned to London having been recommended by many people to consider residential lettings. I decided to take a job in the field and trained in Central London with a fantastic agency as a lettings negotiator.

'After a couple of years I was approached by a well-known agency and took over running their head office. It was out of London and the corporate sector would gradually move west given that Heathrow Airport was located there, access out of London was good and commercial rents were sensible. I decided I had nothing to lose and started Fitz-Gibbon Residential from my third bedroom at home.

'Specialising in lettings - very few people offered lettings in West London - I started my marketing campaign and thanks to my ability to network and high energy levels business grew rapidly. Within six months I opened the Richmond office, had employed two members of staff and had an amazing business with the phone constantly ringing and my Amstrad computer bashing away! Mr mobile phone, which was the size of a brick, was attached to my side and I had a little Fiat Panda racing around West London. I was buzzing!

I have to say, you've chosen wisely as far as the area you cover goes - Mayfair and the South-west of London. Did you go into these areas after they'd already 'blossomed' or were you just lucky?

'Everybody needs luck, but in this case I do not believe luck played a part. It was a strategic decision to open in the South-west London area as I read the market and moved accordingly. After the property crash of 1988 there was a fall out on how the corporate market was operating, investors were considering the BRS (Business Expansion Schemes) and the market was moving out of Central London due to the investment criteria. Residential rents in Central London were high and not all the corporate tenants had high budgets so there were not enough properties to go around. There were also more owner occupiers so not enough properties were available on the rental market either. Fitz-Gibbon Residential was already well-placed to assist corporate and private tenants before prices escalated. In fact, the Mayfair area was an area that I was already comfortable with as my father's advertising agency was situated there so I knew and understood the local market. Indeed Mayfair is a market in itself'.

There seems to be quite a high demand in these areas from overseas visitors to the UK. I guess you must see a fair share of them - does the UK property market meet their expectations?

'We specialise in the corporate market and there is a huge demand from this sector in the areas we cover. Managing expectation is important and all my negotiators are trained in this area. People relocating to a new country lack experience of local life (on the whole) so we offer relocating employees the opportunity to have an orientation tour of local areas and we talk in great depth as we show properties. It is a daunting task if you are moving a family, and juggling everyone's expectations is not easy, but people come to understand that there are many period properties in central London and not every home will have air conditioning and parking.'

Now, I've heard about your additional services, such as providing a home interiors service and school searches. Tell me about them - where did the ideas originate? Have you found them to be a success? Do you charge a fee?

'The home interiors came about from my own experiences coupled with a noticeable change in market trends. Together with the business it will probably come as no surprise that I have my own property portfolio and my husband has a portfolio in the north of England. We're busy people and when an in-going tenant requires furniture, choosing it can become a chore rather than a pleasure. We've also seen a shift in attitude towards the rental market sector and as more people are choosing to rent, we've seen increased demand for professional furnishing and interior design services.

'With this, I decided to offer home interiors to provide busy clients with a flexible solution. The service is founded on total flexibility with a "can do" culture and consistent client support. We can offer a complete interior design service but the main attraction for the rental sector is our range of ready-made collections of complementary furnishings as well as inventory packs.

'Furniture packages are competitively priced and include a no obligation site survey, tailor made quote, full installation and removal of packaging. Emphasis is placed on excellent design, durability and rapid ordering and installation. The main benefit is you can see the collections online and choose bespoke items or packages to be delivered to the property and set up for an incoming tenant.

'The idea has been received extremely well and not only do we have demand from our own clients but also from other investors outside our area. I recently had a call from someone wanting to furnish her holiday home in the Isle of Wight and we were able to offer the complete package to her.

'By offering flexibility a property can be furnished before it come to the lettings market and this can maximise the rent achieved as tenants can see the finished product and move in quickly. For those who don't want the initial outlay, we offer the property unfurnished and then advise them on the interiors available, in which case the client just chooses and we then make the design available to show the applicant.

'The school services exist to help people coming into the UK with children or relocating back to the UK. Navigating complex school entry criteria is stressful at the best of times so we have a link with an educational arm who can ensure that tenants receive all the help they need understanding the British schooling system and securing a place for their children. It is all about endeavouring to make the move from one country or area to another as stress free as possible. Fitz-Gibbon was founded on the intention to offer a complete service and this is yet another example of how we do it.

'We don't take a fee for either of these services. Obviously there is a cost for purchasing the furniture and this is paid up front so there are no hidden surprises. Fitz-Gibbon does not take a fee for the educational introduction but if you need the services for schooling there is ultimately a charge made by the educational advisor.'

Do you feel these services are what makes you stand apart from other agencies in your area, or is there some other secret ingredient?

'Absolutely they make us stand apart, but what really makes us unique is the personal service we offer and the interest we take in every client and their properties. We have an excellent management team and I am forever receiving letters saying how wonderful they are. |Everyone works towards offering a "complete" service and I have many staff who have been with me for over 10 years, so they know how we work and are excellent at training the new blood that comes into the company. Indeed every member of staff has a personal development file and I'm a great believer in providing internal and external training. Our negotiators undergo two years of training to full understand the industry and on-going training to keep abreast of the latest legislation.

'We really do offer a complete service. We will source properties for lettings, let and manage them throughout the full term, continuously collect rent (we do not offer an introduction service), furnish the property, deal with enhancing the property and sell the property at the end of their time. Indeed, we have clients who have been with us since I started in 1987 and that speaks volumes.'

The property market is in constant discussion at present, especially the buy-to-let market. Did you notice any significant difference to your business in 2007 compared to 2006?

'The buy-to-let market continues to be active, but certainly in the last few months there has been a general slow-down. I believe that until this government is clear on the Capital Gains Tax issues and how they are going to deal with this, there will be uncertainty in the market. There is a lot of despondency generally and properties are not coming to the market that might otherwise. Clearly it will settle, but until this happens I'm positive we will continue to see a difference compared to last year.'

And finally, what are your thoughts for the industry for 2008?

'We have an interesting market ahead as more and more people are renting, and not just those who are moving to new areas but also those people who do not want to be tied to owning a home. In London and the South-west, property prices are still increasing and it is becoming difficult for the first-time buyer to even contemplate purchasing. They are being forced to rent and then find that they enjoy the flexibility of renting rather than the hassle of owning a property. We are witnessing the market moving out, and our St Margarets office is benefiting from the corporate sector and individuals moving out of Central London, partly fuelled by the excellent transport links from St Margarets. The Richmond and Chiswick offices continue to service the corporate market as well as the UK market moving around.

'More and more investors will come into the area and I can already see that we are pushing to new locations that offer "more property for your money" and a greater return.

'2008 promises to be an exciting year with lots happening at Fitz-Gibbon so watch this space!'