What is property management?

30/10/20

Property management companies are invaluable to those who don’t have the time or inclination to deal with all the day-to-day demands of being a landlord.

As their title suggests, they manage your property for you.

They will provide rental evaluations, advise on buildings and contents insurance, find suitable tenants, and ensure deposits and credit checks are done.

If you opt for a full service, their workload can also encompass the entire spectrum of property management, including those unpleasant aspects of rental like making credit checks, arranging emergency repairs and chasing rent arrears.

Your property manager will deal promptly with tenants’ problems, collect rent and keep detailed records of everything that happens to the building.

If you have a portfolio of properties, they will do this multiple times.

Their main objective is to protect your investment and, if they do their job well, a property manager can easily return more than their own initial cost.

What do property management companies do?

The property manager’s job ultimately depends upon the level of service you require.

You may want to employ a property management company to find tenants and organise the basics.

This is called a let-only service, or you may want the property manager to collect rent also, or you may wish to offload every aspect of management to the company.

Let-only service

This involves:

• Setting the amount of money that should be paid in rent

• Advising you on buildings and contents insurance

• Marketing and advertising the property on websites and through social media

• Accompanying prospective tenants on viewings

• Obtaining tenant references and doing credit searches

• Collecting the first month’s rent and deposit

• Preparing the tenancy agreement

• Organising gas and electricity safety checks

• Handing over the keys

You can also opt for let and rent collection, which includes all of the above, but the property management company will also collect the rent each month and chase rent arrears if necessary.

Managed service

This includes the same as let only but also:

• Advice on current rental values

• Advice on buildings and contents insurance

• Marketing and advertising the property on websites and through social media

• Accompanied viewings

• Obtaining tenant references and making credit searches

• Collection of initial monies and deposit

• Collection of the monthly rent

• Provide tenants with details to set up standing orders to the landlord’s specified account

• Preparation of the tenancy agreement

• Organising initial gas and electrical safety checks

• Organising the energy performance certificate ( EPC)

• Notification of meter readings to utility companies

• Preparation of the inventory/schedule of condition

• Check-out inspection

• Handing over the keys

• Property inspections throughout the year

• Being the tenants’ point of contact

• Organising repairs and getting quotes for work

• Negotiating the return of the tenants’ deposit

• Lodging tenants’ deposit with DPS

Also...

As well as let and rent collection, you can ask the management company to provide services on an ad hoc basis.

These may include; providing an inventory and schedule of condition, a rent guarantee service, tenancy agreement renewal, carrying out an inspection on your behalf, lodging the deposit with the DPS.

What makes a good property manager?

1. Diligence

They’ll look after your property as if it is their own. They’ll make sure repairs are done, the building is looked after and tenants are happy.

2. Sort out compliance issues

This means they will inspect your property or properties and ensure that you’re adhering to the relevant legislation. For example, landlords need to organise regular boiler inspections.The property manager must be aware of this, and new legislation, as it happens.

3. Issue regular reports

Professional property management is all about strict notice periods, so your property manager should be able to send your monthly report on time.

4. Communicate with you and the tenants

Your property manager will ensure you are kept informed of everything going on in the property and will always be available if you need them.

5. Will follow through

They’ll make sure repairs are done as soon as possible, that tenant complaints are sorted out efficiently, and that regular property inspections are made.

6. Will be visible to tenants

As soon as tenants arrive, the property manager will allow them to put a face to the name by making a prompt on-site inspection. In this way they’ll also be able to assure tenants that they are accessible.

A bad property manager

1. Doesn’t look after the property

They won’t care if it looks shabby and that tenants are unhappy.

2. Doesn’t make regular inspections

This is vital to keep the property in good order.

3. Won’t be accessible

They don't meet tenants straight away and hardly at all. Nobody can get hold of them. They’re always in a meeting.

4. Late with reports

Consistently late with their monthly reports.

5. Don’t follow through

Won’t chase up essential jobs - a major sign of a lack of professionalism – and in some cases, sheer laziness.

What you as a landlord want from your property manager is someone who will look after your affairs and ensure that there is no problem with the property.

After all, this can impact on your cash flow.

What you don’t want is for tenants to withhold their rent because of grievances that could have been easily resolved.

Why should landlords use a property management company?

The property manager is involved in the whole process of renting your property and remains engaged with the tenant during their tenancy.

This means they are responsible for dealing with repairs, maintenance, tenancy renewals, the rent collection, and issuing of monthly rent statements and any other issues you may have.

Above all they are committed to growing your investment, and are therefore more than worth the cost of their fees.

How much does property management cost?

Prices can start from as little as £300, with a full management service costing around 10 per cent of the monthly rental.

Here at Grow Property, we want to make your job as a landlord as easy as possible so don’t hesitate to get in touch with us.