The Pros & Cons of Managing Your Property
23 June 2022
Benefits to Managing Your Own Property
- When managing your rented accommodation yourself, you take full control of the situation. You have the ability to regularly engage with your tenant, so you can know exactly what's going on with your property. You also have complete authority over making necessary maintenance checks and repairs as and when required to ensure you're providing a legal and safe letting.
- By managing the property yourself, you thus avoid paying considerably high agency fees. These fees can range from 10-18% of your rent, adding up to the tune of thousands of pounds a year. However, it is important to also remember that the fees are not for a passive service. Property managers will contact you to inform you whenever an issue arises, ask for your approval, and send you the bill.
- If you are an individual who genuinely enjoys property investing and putting in the time and effort to learn and execute every aspect of property listings and management, you could easily consider it a full time career. The level of career-satisfaction you could gain from taking the helms and ensuring enjoyable stays for your tenants is not an ignorable aspect. Naturally, you will also need to speak to a governing body of the sector. Such as The Property Ombudsman and the Association of Residential Letting Agents (ARLA). This is to guarantee you invest into the correct registrations, training, licensing, accreditation, and insurance requirements.
That being said, full management comes with full responsibility. The rules and regulations surrounding property management can be exhausting, therefore we must now turn to the negative aspects of self-management.
Downsides to Managing Your Own Property
- When you take on the challenge of managing your property yourself, you become one-hundred percent responsible for full legal and safety compliance. Self-management will include keeping up with all the rules and regulations at a local and national level, and delivering on any changes accordingly. Any mishaps with the law, even unintentional, could become very expensive. Local authorities have been known to fine up to thirty-thousand pounds for each breach without even going to court. Serious cases could lead to an unlimited fine, a banning order, or even imprisonment. Conversely, when using a certified agent with the correct training and proper legal support, you can rest easy and be confident that your property is always legally let and managed.
- The to-do list for when renting out a property can be exhausting. First comes ensuring the property is legally and safety compliant. Next is setting the property and photographing for marketing and advertising. Once you've moved onto qualifying applicants and conducting viewings, you will also need to get an Electrical Installation Condition Report (EICR), Gas Safety Certificate, and Energy Performance Certificate (EPC). Then; reference checks, drawing up tenancy agreements, securing said tenant, and checking in the tenant with an inventory report. In summary, there is lots to do even before your tenant spends their first night in the accommodation! When managing the tenancy, you must ensure that rent has been paid in full and chase up where required. The Gas Safety Certificate must be renewed every twelve months, and regular inspections should be conducted. One of the main issues with self-management is the unforeseen problems which could arise at any time. Alongside organising for any maintenance and/or repairs, issues surrounding the property/tenant may appear and need to be dealt with urgently. This can be a tricky juggling act for those with a full time job or family commitments. Or even worse, this could become more troublesome if you are ill or away on holiday. Working with agents reduces your personal to-do list enormously, giving you back your time.
No Middle Man
- Initially, this point may seem like it belongs in the previous Pros list. Although the term 'middle man' has its negative connotations, a Property Management Agent can be extremely helpful in this regard. Whilst most tenancies; with the correct referencing in place, progress smoothly, every one in a while you will run into issues with your tenants. This can create a stressful and tricky situation if you are not accustomed to handling disputes and conflict resolution. If issues escalate and turn into serious problems, you may need to evict your tenant which can be a long and difficult process. Having an agent with knowledge and experience in dealing with landlord/tenant disputes on a daily basis will help navigate even the trickiest of situations.
Still unsure whether to manage your property yourself or to use an agent?
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