According to data from earlier this year, almost half of UK landlords have held just one property in their portfolio. Despite experiencing a challenging few years in a post-Brexit world and a global pandemic, statistics show that the percentage of landlords staying in the industry is stable. Estate Agent Today claims that the NRLA Q1 2021 Landlord Confidence Index discovered the proportion of landlords planning to buy over the next 12 months is 50% higher than in Q1 2020. This poses an interesting question – If landlords are planning to expand their portfolios, how would they benefit from a professional property management service like Rickman Properties?
The Challenges of Managing Property without Professional Management
As most private landlords only have one or two properties in their portfolio, there might be a perception that they can manage the demands themselves. However, the amount of work involved to manage a buy-to-let property is considerable and is an ongoing responsibility that can cause considerable strain – particularly as the property is most likely a valuable investment.
Managing one or two properties with another full-time job, other priorities, or lack of knowledge in this industry, for instance, is a big challenge for real estate investors. There’re lease agreements, repairs, cleaning, logistics, tenant disputes and complaints, not to mention the hefty fines if you don’t have the right information. Fines are very likely too if landlords fail to keep up with the confusing number of rules and regulations changes.
For example, new safety rules that apply to all existing tenancies from 1 April 2021 state that landlords can be fined up to £30,000 if they fail to provide an electrical installation condition report (EICR). This is just one example of something a property manager would keep landlords on top of – and paying a property manager rather than paying a fine is usually preferred!
These challenges are reflected in our recent blog where Paul Shamplina, Buy to Let expert, inclines private landlords to use letting agents due to the dramatic increase in regulations and pressure on the property industry.
The perks of property management services
According to Estate Agent Today, 70% of landlords in their State of Lettings Report who use a management service said that they were happy to delegate all responsibility to their chosen agent. There are many reasons as to why this is the case, reflected in our blog discussing the benefits of London property management.
Here are some examples of the benefits of professional letting agents and property managers:
- They have a better understanding of the local rental market;
- They have a trusted screening process that helps select suitable and reliable tenants;
- They deal directly with prospects and tenants. This saves landlords time and worry over robust tenancy agreements, marketing rentals, collecting rent, dealing with maintenance and repairs, responding to tenant complaints, and even dealing with evictions;
- They are incredibly valuable to landlords requiring a professional and successful service in full compliance with existing regulations. Landlords can have peace of mind knowing that their investments are in good hands;
- They bring a network of on-hand reliable builders and tradespeople (therefore, quicker response times!);
- They are an independent contractor. Landlords can then avoid the hassle of being an employer to individuals who assist them.
Most importantly, a well-maintained property will help achieve higher rents. This is key for the majority of buy-to-let landlords whose properties are an investment – a primary source of income to be strengthened, maintained and prolonged!
How to Find a Good Property Management Company
If you decide to hire a property management company, follow these steps:
- Do your research! Search for services in your local area online, and ask around for any recommendations.
- When selecting an agent, interview them to ensure all your questions are answered before turning over control of your property.
Interested in our professional property management services? Contact us today on 020 7937 9777 or email us at info@rickmanproperties.com to get started!
