Whatever the
reason, it’s a safe bet that you want to make a good return on your investment.
But while you’re
happy to use a letting agent to find tenants, when it comes down to it, you
just can’t bring yourself to pay them to manage the property for you.
This might just be
one of your biggest mistakes.
In this quick
read, we look at why paying for property management might be the best decision
for your pocket (and sanity).
How much does
it cost for an agent to manage a property?
Let’s tackle the
hard bit first. Agents can charge anywhere between 10% and 15% for full
management. So, if your monthly rent is £1,500, you could be shelling out up to
£225 a month. It’s definitely not cheap, but it does offer peace of mind in the
event of problems occurring.
What does
property management include?
Once an agent is
managing your property, they can take care of aspects such as finding tenants,
communicating with tenants (and you), rent collection, deposit protection,
repairs and maintenance, inspections and deposit disputes. It’s best to speak
to your chosen agent to find out exactly what their fee includes.
They have a black
book full of contacts to get all your repairs done, including gas safety checks
and boiler repairs.
When should you
consider property management?
If you’re a
full-time landlord managing several rentals, it may not be the right choice for
you. However, rent collection services could save you time.
If you own a
single rental and have a demanding job or other commitments, paying a monthly
fee for management services may be the best thing you do.
Think of it as an
extended insurance policy. Not only will they do all the admin required when
finding tenants, but they’ll also manage the day-to-day elements of your
property, saving you time and hassle. They’ll also carry out regular
inspections, which many landlords fail to do. Speak to your agent to clarify
what’s included in their service.
Similarly, if you
live far away from your rental property, using a property management service
just makes sense. They’re closer and can deal with issues as and when they
arise.
What else does
property management offer?
Rules and
regulations around rentals are always changing, and it’s an agent’s job to know
what the government is implementing and when. They can keep you up to date with
your legal obligations and ensure the property is fully compliant with health
and safety laws.
Letting agents are
also regulated, so must adhere to codes of professionalism, and have a duty of
care towards you as their client.
If you’re looking for a property management service or help to find new
tenants, get in touch with Ridgewater Sales and Lettings today.