Top reasons Landlords should use a managing agent to look after their rental portfolio
The running costs of rental properties can be expensive, but some costs shouldn't be scrimped on; read on to find out more.
Many people mistakenly think that it is a hands-off investment option as they embark on property investment. Simply buy the property, rent it out and watch the cash roll in. But, if you're already a landlord, you'll no doubt already know this is far from the truth.
You're responsible for the property's upkeep, repairs as necessary, annual certificates and legal responsibilities. Regular inspections and accounting for the rental payments. Insurances, mortgages, interest rates, tax. There is much to consider, and it can take up quite a lot of your time.
And this assumes that everything runs smoothly and there are no issues. Throw an unruly tenant into the mix or rent arrears, and you have a second full-time job you didn't ask for!
Maintenance requests come in whilst you're on holiday with the family, meaning you must take time to arrange contractors. Rent arrears must be chased and handled accordingly to ensure payment while staying within the legal guidelines. Almost every landlord that opts to manage their properties themselves has missed at least one inspection visit, if they've ever done any at all.
With this demand on your time, it's easy to see that things can slip. Of course they do; you're busy. You have work, family, friends, hobbies. You have your own home to run and manage. Adding in the day-to-day management of a rental property is just another thing you never seem to find time for on the to-do list. And if your tenant is mostly quiet, and the rent is paid, it is so easy to think that things must be going well, so do you really need to visit them?
Sadly, if things slip for too long, it can be difficult to get a grip on it again, and this is often where the bigger problems start.
The solution? Either commit to devoting more of your personal time to the proper management of your property investments, treating it as a job rather than a hands-off investment, or employ a professional to handle the process for you.
These are the main benefits of a proper managing agent, although there are many, so this is by no means an exhaustive list!
- Regain your free time - perhaps the most directly impactful benefit to you will be that outsourcing your property management will give you your time back. You no longer have to be available on the end of the phone for your tenants because
- Peace of mind - You no longer have to find the time to deal with the property yourself, and you can tick those tasks off your to-do list right now. A managing agent will have it all in hand, and you can be confident that no important dates will be missed and no legislative issue will be left outstanding.
- Professionalise the process - tenants often prefer to rent a property that is managed by a letting agent as there's a redress process in place if there are any disagreements and a governing body to ensure that the agent provides a certain level of property and service to both the tenant and the landlord. When private landlords are mainly unregulated, it can make tenants feel apprehensive and less likely to settle in a property for a longer term.
- Always on the right side of the law - Legislation within the private rented sector changes frequently, and there are literally hundreds of pieces of legislation governing how a property is managed. Unfortunately, most landlords are unaware of the laws involved, other than the tenancy agreement and gas safety certificates. Employing a managing agent will ensure that all legislation is adhered to correctly and you are on the right side of the law. Of course, criminal charges are very unlikely with renting properties, which is perhaps why self-managing landlords don't worry too much about them. Still, the repercussions if you break the law can have a hugely negative impact on you in other ways. Usually, you will be prohibited from evicting the tenant, even if they are in breach of the contract, if your tenancy isn't compliant at the time of the eviction. Clearly, if you have a tenant in arrears, the last thing you want is to find out from the judge that your possession order can't be granted because you are not compliant and you have to wait for another court date (without any rent!)
- Management fees are the same - the cost of your management fees will not increase with the workload, meaning that if the worst should happen and the agent has to deal with a problem such as rent arrears or eviction, the monthly cost to you will not change. Similar to insurance costs, the monthly 'premium' is the same all year round, some months will give the agents more hours' work and some months less, but the cost is spread out over the year so that you can easily budget and account for it.
Property management can be started at any point during a tenancy agreement, so don't worry if you have a tenant living in the property now; there is no need to ask them to move out or renew their agreement.
To move your property to full management, simply contact our team of property experts, who can take over from here. Then, book a holiday and get ready to enjoy some real 'switching off' time, safe in the knowledge that your property and tenants will be properly looked after, and all you have to do is give an occasional approval by email to the agents.