What are property managers and should I have one?

Property management is a broad term. It’s something you can do yourself. It can refer to advertising, administration, and tenant placing as well as physical maintenance and repairs. A property manager can be an agency, or it can be a person. A common set-up is for a property management agency to have a front office that deals with sales and lettings, supported by a ‘back office’ which deals with everything post-let. You can also have individual Property Managers – meaning a dedicated person who will look after your property over the course of a contract.

All sounding a bit vague? Let’s take a closer look at the specifics, and what the real benefits are of hiring a property manager for your rental investment, as opposed to going it alone.

What is a property management agency?

A property management agency will assist you with aspects of the letting process you don’t want (or don’t have time) to deal with yourself. These might include:

#1.Valuations

#2.Advertising

#3.Tenant sourcing

#4.Contracts, credit checks and referencing

#5.Managing deposits

#6.Collecting rent

#7.Inventories

#8.Property checks

#9.Responding to maintenance issues and emergencies

#10.End-of-tenancy administration.

Some agencies will offer varying tiers of service for varying costs. For example, you might wish to have an agency source your tenants for you – a much easier task than it would be for an individual, thanks to the large databases agencies manage, their access to portals for advertising, and the reach they can get online – and then resume the reigns of general running and maintenance of the property yourself. Or, you may already have tenants in situ, but would like someone to take over the ongoing maintenance.

You might also deal with an estate agency (or lettings agent) who have a dedicated Property Manager in-house. This person will be your direct point of contact, and will handle much of the above, while a salesperson or administrator will handle the initial things like advertising and contracts.

Why do I need property management?

The idea of property management is to take property investments from active ones to passive ones as much as possible. Anyone entering the rental market for the first time will discover that being a landlord can quickly turn into a full time job. With a portfolio of several properties, it can be almost impossible to manage them without an agency, especially if you have a separate full-time occupation.

What are the key benefits of property management?

#A. More time: Calls from tenants can come at any time of the night or day. Major issues such as broken boilers or damp can come out of the blue, and take time to resolve, as well as being fraught with emotion. A property management agency will field these calls for you, as well as having special 24/7 lines set up for out-of-hours emergencies. You will only be contacted for approval of costs – no need to deal with contractors, suppliers, or your tenants themselves – and no need to attend the property in person.

#B.Less stress: As with any interactions that involve money, relationships between landlords and tenants can grow tense. Emotions run high when it comes to property and investments (on your end) and peoples’ homes (on your tenants’ end). An agency works as a go-between between you and your tenants to keep any emotion, bias, or potential conflict at bay.

#C.Travel reduction: Our rental properties aren’t always in our back gardens. Perhaps you purchased rental property in a higher yield area, or inherited property far from home. Either way, travelling to-and-from can interfere with our daily lives. Hiring a property manager nearby can save a considerable amount of time and money.

#D.Guidance: Another one that might apply to those who have inherited property and are wondering what to do with it – new landlords can find it overwhelming to get to grips with the paperwork, the legalities, and the requirements of letting property if they have no prior experience. Property managers come with a wealth of knowledge and know-how and will be able to assist you whatever your unique situation.

If you decide to go down the route of a property management agency, remember – your agency should always be on your side. You pay their fees, so they work for you, not for your tenants. Sophic Property understands that your rental property is a precious asset. Let us keep it ticking over so you have more time to relax. Read more at www.sophicproperty.co.uk.