Usually, successful business people are fairly reserved and prefer not to discuss their worries, fears and failures. To the uninitiated, they often seem iron-nerved perfectionists who have made good in their professional and personal lives. Today’s subject, Alisa Zotimova, an entrepreneur, writer, motivational speaker and owner of the British estate agent AZ Real Estate, is not afraid to show her weaknesses, be open and warm and offer a helping hand to those in need. She’s even written a book giving a frank account of her life.
Your book came out in 20201: From Moscow to London. Notes on Happiness and Business. In it, you share your experiences of emigration, opening a business, becoming a mother and of your personal achievements. It’s aimed at a female readership and it promotes the idea of a sisterhood of businesswomen showing mutual solidarity. Do you believe this lack of support puts many women off opening their own businesses?
Women truly do find it hard because they struggle to be taken seriously, either by men or indeed other women, especially at the beginning of their careers. So in my book, I write that women in business need to support one another, and I try to do this myself. This in no way means I only choose companies to work with on the basis of the owners’ gender. The quality of products and services always comes first, but if these are roughly equal, I give my preference to companies owned by women.
How did the idea to write the book come to you? Why did you decide that your experience would be interesting and useful to others?
It was probably to get closure as a reader. When you read a lot, you unconsciously put yourself into the author’s shoes, thinking “Could I have written that?”. The idea of trying to tell my life story took root in me. The initial impetus to write was a webinar, part of a course on how to write works of nonfiction. It coincided with the pandemic, I had a little bit more free time than usual so I started to write the book. I went about it like a full-time job; I tried to write five days a week, 5,000 characters a day. My motivation was to leave a mark, so the book wasn't just about property, that's more of a background, it's more about personal growth, transformation, aesthetics and the support I wanted to express for other women who have decided to change their lives. Despite it being a book for women, it is interesting for men as well. I keep getting reviews from readers of both sexes. It provides insider information of a sort on how femininity manifests itself in different spheres.
When you moved to London in 2007, you already had experience of work in real estate. How much has the property market changed since then? What new trends have appeared?
Yes, I started to work in property when I was still in Moscow. I worked for five years in the real estate market of the Russian capital, back when it was still only in formation. A lot has changed there since then. I specialised in the sale and rent of commercial spaces. On moving to London, I continued to work in this area. Over the last few years, the commercial and non-residential property market has evolved, influenced by various factors such as the pandemic, the development of online business and changes in legislation. Since working from home has taken off, companies have begun to move away from office space. Co-working has appeared. The sharp growth in online trading and the development of online marketplaces have broken the business model of large department stores. Many buildings here are being completely repurposed, some, for instance, as hotels. Smaller retail spaces are also changing their formats, as they are increasingly becoming charity shops, mini cafes and snack bars.
Nowadays, many investors prefer not to risk investing in commercial spaces or development projects. The profitability of the former may be as little as 5-8% while an annual profit of 5% can be guaranteed simply by placing a deposit in a bank. In the latter, the risk of delay has increased dramatically, resulting in less profitable annual rates for development projects. Of course, over time, the market will balance out.
Over the last three years, my estate agency has focused on residential properties, as, currently, this area has more potential for us. It's easier to invest in and, although the profitability is not high, there are virtually no risks. What's more, it is easy to rent out housing; London is very popular. Many foreign students, corporate employees and the generally well-off would like a second or third property here to add to their international trophy portfolio. Residential properties are always in demand. Last year, due to the uncertainty caused by high bank rates and a looming general election, the market was in stagnation: there were few transactions, whether purchases or sales. Since the start of the year, growth has been resurgent.I would name regeneration as one of the main changes to have happened in London. Many locations have been transformed, literally before my eyes. The once down-at-heel neighbourhood around Kings Cross station has turned into a garden city and a major infrastructure project is being constructed in Battersea, where there were only derelict buildings 15 years ago.
What is important for the English when they buy housing and what criteria come first for other nationalities when they buy property?
While those from the post-Soviet space won't consider apartments on ground floors, this consideration is not important for the British, especially when a garden or backyard may be an added bonus. Also, Russian-speaking clients value high ceilings, not just for comfort but as a status symbol; they associate flats with low ceilings with low-cost Khrushchev-era dwellings. However, in London, even in very prestigious neighbourhoods and expensive new housing complexes, there are few apartments with ceilings higher than 2.55m (8ft 4in). There is a simple commercial basis for this; developers save on ceiling height to boost the number of floors in the building and create more square metres of floor space.
What criteria must be taken into account when looking for housing to rent and what should be considered when acquiring property?
There is much more flexibility with rented accommodation since it's easier to part with it and there are no extra charges; no taxes or fees such as service charges, except for rent and utility bills. Of course, to an extent, landlords may pass these costs on in the rental price, but still, the amount will be lower than when buying your own property. One of the minuses of renting is that you can't redecorate your home or do a makeover to your taste. Also, if the owner decides to sell up or wants to use the property themselves, you won’t be able to renew the contract when it expires.
I often recommend clients rent if they would like to buy a flat but don't know London well or if they are here for the first time. This is so that they can get to know the city and neighbourhood before buying. You see, after they’ve made a purchase, if some issues come up such as noise levels in the area or difficult relations with the neighbours, then it’s unadvisable to sell a flat straight away, as this can only be done at a loss. For example, let's say a client chooses a property with a value of £1 million. We have to add to this price additional costs such as stamp duty, that's 9-10% of the price of the property, payments for the services of solicitors and estate agents and the cost of the move itself. So, a potential purchase might set the new owner back £1 million, plus £100,000. However, the property's market value will still only be £1 million. So that's why I always recommend clients acquire properties for at least five years. Over this time, they can usually recoup their investment and earn a little more besides. What's more, flat owners also pay annual council tax and monthly utility bills. There are also service charges for parking, the lifts, intercoms, the concierge, gyms, insurance policies and ground rent. These payments may amount to several tens of thousands of pounds a year and in a new, modern housing complex, this will be higher, so you have to know where to get the money to pay for all this. We always bring this to the attention of clients. For example, when parents buy a flat for a child who is studying at university, it is important to consider how they can maintain it after graduating without these costs taking up all their salary.
What's the right way to choose a neighbourhood to live in? What's the first thing to look at when getting to know a locality and its surroundings?
Above all, the financial aspect is key, of course, but generally, people can be divided into two categories; the first prioritise location and the other comfort. For instance, some opt for a smaller flat and choose a location closer to the centre, while others choose cheaper areas where they can afford a whole house. Of course, nobody wants to live next to a highway or an industrial estate. Having said that, there are no homogeneous neighbourhoods in London and even prestigious areas have social housing. In the countryside, there are exclusive neighbourhoods in picturesque locations. The rest depends on personal preference. For instance, if somebody likes being in the thick of it, strolling around boutiques and regularly dining in restaurants, then Mayfair or Soho are suitable for them, where property is very expensive. Those who value privacy and refreshing walks in beautiful parks will find Hamstead or Highgate more suitable. For some, the appearance of the house is important. They may like the idea of living in an old mansion, for example. For families with children, the ratings of nearby schools and the presence of nurseries count the most. So, before buying, it's best to take a walk around the neighbourhood where you're planning to acquire the property and have a look at the surroundings, the architecture and so on.
How can we tell if a house will be comfortable? What signs allow us to assert confidently that it's better not to move into a property? Can neighbours refuse to give consent for tenants to move in?
No, an owner can't be forbidden from selling their property, however, there is the leasehold, an agreement with the owners of the building where various rules may be set out. For instance, there may be limitations on the pets that may be kept or the hours during which music may be played, a requirement for construction work and changes to the property’s layouts to be approved by the leaseholder or limitations on the alterations that can be made the appearance of the facade; for example, air conditioning units may not be allowed. Short-term (by the day) rentals are forbidden in many buildings. This is primarily due to security considerations. A client may wish to purchase an apartment with a terrace to grill food al fresco, but this is forbidden in many properties. Solicitors write reports for each building where all of these details are stipulated. To avoid unpleasant surprises, it’s better to check these. We clarify our clients’ preferences and warn them about issues in advance. If we find no information relevant to a particular client’s demands in the report, we request extra information. Also, on purchasing historical housing stock, we advise hiring a building surveyor who can conduct a technical appraisal of the state of the property. They make photographic reports detailing what risks there are, as well as the state of the roofing, the wiring etc and they say what needs attention. There may be small cracks in the walls indicating the property is suffering from subsidence. In this case, it's better to look for a flat elsewhere. The cost of these services depends on the size of the property and may be anywhere from £1,000-3,000, but I believe that it's a good investment.
Most often, do people buy properties via an agency or independently?
It’s an even split. Wealthy individuals making purchases from £1 million up prefer to buy from an agency.
Despite having had leading positions in companies, in 2012 you opened your own estate agency; AZ Real Estate. Why did you decide to open your own business? What are the pros and cons of working for hire versus working for yourself?
I decided to leave because after having worked in two major companies for ten years, I had exhausted myself. I wanted new pastures, flexibility and the opportunity to try out my own hypotheses in practice, because, when you are working for someone, even very good ideas can easily be turned down. I started my own business 12 years ago and I have been working on it ever since. If I didn't like it, I would have gone back to working for hire. The greatest advantage of independence is that I am the captain of my own ship. However, it's not just a hobby for me, it’s my source of income and this is where the drawbacks start. One of them is a lack of stability. While I was working for hire, I had a monthly salary and benefits such as medical insurance and pension payments. On the one hand, with my own business, the risks are greater. For example, I wrote a business plan and then Brexit and the pandemic happened, but on the other hand, at a major company, you may be axed. When you are the owner, you have responsibilities towards your employees, financial and otherwise. It is easy to foresee costs, but less straightforward to foresee sources of income. We currently have eight people working at the agency and I need to provide them all with stable working conditions, opportunities for development and a decent salary. Well, of course, I'm not actually required to do all this but if I didn’t, my workers would leave.
Were you frightened?
The fearless die young. Fear is necessary for survival. I feel frightened sometimes now, it's a normal reaction. What's important is what you do with your fear. You must let it fuel your victories. When you're running a business, you always have to be an example for your employees and show leadership qualities. Your clients also expect confidence and stability.
What main problems are facing business today? Is recruitment really a major challenge?
Yes, because, in business, it's hard to find good, like-minded people who are interested in the work and will be loyal to you.
You set up your business before your family came along. Now you're a mother, a stepmother and a wife. This is a different level of responsibility. Would you risk opening your own business now or would you choose to stay in stable employment?
I would have a try anyway because you have to follow your dreams. I think my family would support my decision.
What dreams have you not yet achieved?
I want to adapt and publish my book in English. As for business, I've already prepared solid foundations and now I want to take the company to a new level and new heights of profitability. While we are narrowing down our market by only offering properties in London, in terms of clients, we’re actually planning to broaden our geographical reach.
