As a landlord, you might have invested in property for additional income; maybe it’s a way to save for your future, or perhaps you’re an accidental landlord and had to rent your property out due to a change in circumstances.
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 Greyfox today.