Managing a tenancy is a complicated, constantly changing and evolving process.  It can be overwhelming with so much to control and so many rules and regulations to keep up to date with. You might even wonder if it's even worth all of the hassle? Add to that the repercussions of getting any part of the process wrong, and it is clear there is much more to it than simply letting a tenant move in and charging them a monthly rent. 

Failure to comply with the hundreds of pieces of legislation can result in ridiculously high fines and, in extreme cases, even a prison sentence or the refusal of possession by the courts.

But even despite the risks and stresses involved, some landlords choose to go it alone, managing their tenancies themselves without professional help or guidance. And it's clear to see why, whether they feel they can do better, devote more time to the management or simply want to reduce costs. 

Sadly, though, this often goes wrong, and in the eyes of the court system, ignorance of the rules is not a defence against them. It is not enough to simply not understand the system. It's little surprise then that most tenancy horror stories come from landlords who have DIY'd their property portfolio without professional guidance. 

Having a professional on your team is invaluable. Yes, you'll need to pay for this service, but is it really something that you can afford to skimp on? We think not; property management is so much more than just collecting the rent each month. It involves many aspects that keep the property in good order, the tenants happy, and the rent flowing in.

What is Property Management?

Different agents may offer different levels of service in their management product, but the majority will cover

Once you understand what's involved in managing a tenancy properly, it's clear there are hours of work involved each month. It's much more than checking the bank account for the rent each month. The hours that go into looking after the property and the tenancy each month can increase and decrease depending on what stage the tenancy is at. However, monitoring, remembering to deal with updates and renewals promptly, and keeping up to date with new legislation soon mounts up. It is undoubtedly not a hands-on option to generate a little extra cash; it can be labour-intensive to keep up to date with everything. 

Sadly, one of the main problems for DIY landlords is that they can't keep on top of the various requirements that crop up annually, and most are out of date or overdue on a number of the pieces of legislation. Of course, the repercussions are enormous with things like the gas safety certificate. Still, it is perhaps lesser known what would happen if you forgot to serve a particular document at the right time during the tenancy. There would be no safety issues from this oversight, but you'd soon find out how serious it is if you tried to serve an eviction notice. A court would refuse a landlord possession of the property if there were any outstanding pieces of paperwork or certificates overdue. A letting agent ensures all of these things are current and handled appropriately.

There are no reasons that a landlord MUST use a managing agent, but the majority of horror stories from landlords that have struggled with renting out property come from those who have tried to go it alone and have simply not managed things effectively. Seasoned investors that held on to properties after the credit crunch in 2008 came unstuck because they thought they knew enough to get by. Landlords that didn't have the tenants' proper names were left with void tenancy agreements. Legal paperwork downloaded off the internet was either ineffective or not completed correctly, leaving the landlords without a leg to stand on. Countless gas safety certificates expired, and almost all without a valid EICR because the landlords were not aware of the new legislation that came in. And when it comes to tenancy deposits, the list of issues is endless. Cash held in the landlords' house, unregistered deposits, charged at the wrong amount. These issues would cause havoc if the landlords needed to gain possession of the property again. This means that if the tenant decides to stop paying rent, there's very little the landlord could do. And whilst that is irritating and expensive, it can be catastrophic if you have to find the funds to pay a mortgage on the property without any rental income, leading to repossession from the bank and potential bankruptcy for the landlord!

What if you get it wrong? - The repercussions for getting property management wrong can be huge, from massive fines to prison sentences. But perhaps more realistic, you could end up being unable to reclaim possession of your property, even if the tenants are in the wrong. If you haven't served every notice correctly and in the right timeframe, or perhaps you have let a safety certificate slip, and you've forgotten to arrange something. A simple mistake to make and certainly easily done, but if you're not super organised and keep on top of things, you might be refused possession by a court. There will also be issues in claiming the deposit when the tenant moves out if you haven't dotted every 'I' and crossed every' T' during the tenancy. 

In conclusion, whilst it may seem like a good idea to cut back the costs as much as you can and opt to manage the tenancy yourself, for around 15% of the monthly rental amount, you can have total peace of mind that everything is done correctly and is above board, safe in the knowledge that you can evict the tenant if the need arises and you can stay solvent and out of prison! It is a small price to pay, really, isn't it?

If you're struggling to manage your own properties, contact our team of property management experts to answer any questions you have, or perhaps ask them for a full tenancy audit to see where you have gone wrong.