Maybe you're investing in buy-to-let, or you're an accidental landlord with an inherited place to rent out. Working out how you'll manage your property or portfolio is one of your first big decisions.
You might opt to use a residential property management company. They can certainly offer peace of mind by taking some of the stresses and strains of being a landlord. They can liaise with your tenants and look after maintenance to ensure your property investment brings a good return.
But are management companies worth the fees? Here are 9 reasons why hiring a property management company makes good sense.
What do property management companies do?
Property management companies deal directly with tenants and prospective tenants and handle all aspects of marketing your rental home, collecting rent and dealing with maintenance and repair issues. All of this saves you time and gives you peace of mind that your property is in good hands.
1. Knowledge of legislation and laws
There is lots of legislation around renting out residential property. Safety regulations include regular gas and electrical checks, provision of smoke and carbon monoxide alarms, fire regulations and legionella risk assessments. You are also duty-bound to check your tenant's right to rent in the UK and hold your tenant's deposit in an approved deposit scheme. Failure to comply can result in hefty fines or even imprisonment and mean you lose your legal rights to eviction if your tenant stops paying rent.
A property management company will be fully up to date with all the regulations and ensure that your property is fully compliant.
2. Find tenants more quickly
A management company can help you find tenants more quickly, so you have fewer void periods. They will help you get your property ready, take professional photographs and ensure it is listed on all the big property portals so that as many prospective tenants see it as possible.
They will have processes and procedures to check the previous tenants out of the property quickly so the new tenants can move in straight away.
3. Find better tenants
The screening of prospective tenants is essential to avoid the bad ones who pay their rent late and don't look after your property. Property management companies have a robust tenant vetting process that will weed out unsuitable prospects. They will also deal with any discrimination charges from rejected tenants.
4. Happy tenants who stay for longer
Happy tenants are loyal tenants, and loyal tenants are more likely to stay for longer, helping you avoid the costs associated with high tenant turnover.
Because good property management companies follow a detailed tenant selection process, communicate well with your tenants and keep on top of repairs and maintenance, you'll have happy tenants who want to stay put.
5. Maximise your rent
Property managers will know the ins and outs of your local rental market and advise you on the rental value of your property. As a third party, they are better placed when it comes to re-negotiating rent with your existing tenants.
6. Efficient rent collection
A property management company can act as a useful buffer between the landlord and tenants. In our experience, tenants are less likely to miss their rent payments when paying a company rather than an individual landlord.
A property management company will manage the process of chasing rent payments and, if necessary, can start legal eviction proceedings on your behalf.
7. Lower maintenance and repair costs
Hiring a property management company allows you to tap into their network of trusted contractors. Because they are dealing with a large volume of units, property management companies can often negotiate discounts, so you pay less. Their contractors are also more likely to be able to attend your property at short notice.
8. Increase the value of your rental property
Good maintenance is the key to retaining the value of your property. A property management company will conduct regular inspections and spot potential problems early. They will also be able to suggest improvements which could increase your rent.
9. Less stress, more free time
As a landlord, you need to be available for your tenants 24 hours a day, 365 days a year. Property management companies have a 24/7 emergency line for tenants, so you won't be bothered at unsociable hours or on holiday.
If you have ever managed your own properties, you will know how time-consuming it can be. Hiring a property manager frees up your time, allowing you to spend more time with family and friends. Depending on the level of input you agree, you can authorise your agent to carry out emergency repairs without bothering you at all.
We can help
Whether you are a new landlord or a seasoned buy-to-let investor, our property rentals team can help you find the right tenant, manage your property and maximise your profit. Contact us today.