One of the most important decisions you can make as a landlord is whether to manage your buy-to-let property yourself or if you’d be better appointing a letting agent to act on your behalf.
According to the English Private Landlord Survey, 49% of UK landlords manage their own rental portfolio. Of those who don’t employ an agent, 64% have only one buy-to-let home. Landlords with two or more properties are more likely to appoint a letting agent, according to the study on behalf of the Department for Levelling up, Housing and Communities.
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Almost one-fifth of landlords who hire an agent use their services purely for property management purposes, while the majority also use them for letting out their rental homes: some landlords simply don’t have the time or inclination to manage their rental portfolio themselves and prefer to leave it to a professional management firm instead.
What is property management?
Property management is the day-to-day overseeing of one or more rental properties on behalf of the owner. The tasks of a property manager can be many and varied, depending on your requirements and the agent can be involved as little or as much as you require.
The agent’s duties can include helping the landlord to find good tenants; ensuring the tenancy agreement is satisfactory and that it covers all legal requirements; and the collection of rent from tenants.
The agent can also be responsible for organising new landlord furniture for your portfolio, carrying out inspections to make sure it’s being looked after and replacing items when they become worn out.
Furnishings can enhance a property’s appeal and simplify the tenant vetting process. Research shows young professionals and students tend to prefer furnished properties, so a letting agent should understand your preferred demographic and manage the furniture accordingly.
Furnished rentals attract a 15-20% higher rent on average, so you need someone who fully understands your needs and who will sign up the right tenants.
Property maintenance and safety inspections
A letting agent can look after the property’s maintenance needs to ensure it remains in a state of good repair and safe for habitation. This can include organising regular checks, such as the annual gas safety check and the five-yearly electrical safety inspection.
It can also include booking the services of trades people to carry out repairs and maintenance and handling tenant complaints, liaising between the landlord and tenants to ensure the smooth running of the property.
At the other end of the spectrum, a landlord might hire an agent for just one specific task, such as collecting the rent.
Letting agents can work for all types of property owners including private landlords of houses, apartments and HMOs and owners in the field of short-term lets. The rise of platforms such as Vrbo and Airbnb has increased property owners’ needs for guidance and expertise to capitalise on their assets.
How to choose a property manager
When choosing a letting agent, a landlord may have some specific requirements in mind such as a good price for their services, convenience, expertise in their field and a customer-focused helpdesk.
Finding an efficient property manager can transform your business, reducing hassle and stress and saving you money in the long term by ensuring rent payments are received on time.
When choosing a property management firm, first and foremost you should seek a company with a proven track record, checking how long they’ve been in business and whether they have received five-star reviews. By all means, find a company that fits your budget requirements, but never sacrifice a high-quality service for a cheap price.
Find out how they deal with rent collection and how promptly it will be sent to your bank account. An efficient property manager should be responsive to queries and always keep you informed of any updates, especially in terms of finances.
The best way to go about hiring a letting agent is first to identify your personal requirements and what duties they will be expected to perform. Then work out your budget and start looking for an agent who seems to fit the bill. You can search online, contact estate agents, ask around fellow businesspeople, or chat to family and friends who are in the sector.
Look for reviews online to see what other landlords have to say and seek references from other clients who have used their services.
Evaluate their expertise and experience and assess the services offered to ensure they provide exactly what you’re looking for. Check their management fees and make sure you understand exactly what you’re paying for, as transparency is an important aspect of hiring an agent.
Always meet in person rather than dealing with them solely online or by telephone. While this can be a good place to start, you must have a personal meeting too. Have a chat to ask how they will handle tenant relations, maintenance issues and all financial aspects of the business. It’s preferable to see them face-to-face when discussing this to get a feel for their company and ascertain whether they’re a good fit.
As a landlord, making the right property manager choice will help assure a smooth journey for you and your tenants.