There are two basic options when it comes to managing your buy-to-let property on a day-to-day basis – but how do you know which one is best for you?
One way in which to approach the management of your property is to take a hands-on approach by maintaining the property yourself; the other is to distance yourself slightly by appointing a management company to handle the investment property for you. Still not sure? The Landlord Link is here to assess both options and help you to make the right choice.
Managing Your Own Buy-to-Let Properties
Managing your own property portfolio can be a rewarding process for those who have the time and resources to ensure that tenants’ needs and rights are seen to. If your property is local or your tenants are known and trusted to you, this could be the ideal arrangement.
You will be required to ensure that your rental property meets legal standards and that all administration and maintenance is completed efficiently. Some of the specific duties which you’ll need to be aware of are:
• Responding efficiently to maintenance issues and requests for repairs to the property
• Providing and updating a property rental agreement
• Completing a condition report
• Ensuring records are kept of rent payments
These are just a handful of examples – trust us, there are plenty more! However, if you’re a particularly organised person who enjoys being in charge of all their own affairs, there is no reason that managing your own buy to let property can’t be a more than realistic task.
There are, of course, also downsides and restrictions to this style of property management. For one, if you own a large portfolio of properties, attempting to keep on top of the specific needs and requirements of each one can easily become overwhelming. Taking such a hands-on approach is time-consuming and full of responsibility.
Appointing a Property Management Company
Using a property management company to handle the day-to-day affairs of your buy to let property can free up your time to take care of other aspects of your business. It is essential to find a reliable company, who you can trust to provide your tenants with the sort of rental experience which you would expect to receive yourself, but when you do they can be a vital asset.
A property management company will relieve you of many of the duties listed previously, including maintenance and legal requirements for your buy-to-let property. They will deal directly with the tenants and collect rental payments on your behalf. They will usually work with local tradesmen to ensure that the property is maintained to a high standard and some will even deal with council rates and utility bills on your behalf, if requested. If you intend to have a regular turnover of tenants on short-term leases, the property will likely need maintaining more often and a property management company can make this process far less stressful for the landlord.
The main thing to consider when looking into this option, however, is that these companies can charge up to 15% of the rental costs for their service. Any additional maintenance costs could be charged on top of this and insurance for the property and subsequent letting may not always be covered – it’s essential to check all contracts before entering an agreement with any property management organisation.
As you can see, selecting the right management option for you and for your properties can be difficult. If you enjoy building a personal relationship with your clients and visiting your buy to let properties on a regular basis, managing them yourself is certain to be the most satisfying choice. If you are slightly more constrained with regards to time – or simply if you want to focus your energy elsewhere – appointing a reliable property management company is going to be much more suited to your needs.
We hope that this article from The Landlord Link has provided you with some useful information. For more advice for landlords visit The Landlord Link blog. Did you know you can sell rental properties for free on The Landlord Link? List your property or portfolio today.