Should You Use a Property Agent?
By Mary Waring
Property management isn”t just about collecting rent. It’’s about ensuring your property is always rented, ensuring you have the best possible tenants, and ensuring you”re getting the best possible rent.
It’’s about keeping the property well maintained, tracking expenses and income, and dealing with the legalities of leases and the rights of tenants.
This is what property managers do. It’’s their core business and for a landlord, the benefits are significant.
*** Save time ***
The most obvious benefit is time saving. You don”t have to spend an hour or so each week looking after the rental property.
Typically this involves making phone calls, placing ads, interviewing prospective tenants, speaking to solicitors, speaking to your tenants, collecting rent, organising tradesmen and so on.
How much could you earn in that hour if you were focusing on your work rather than chasing your tail?
*** Know Your Rental Property Market ***
Property investment is a business. To succeed in business, you need to know your market. Property managers make their living out of knowing the rental marketplace.
They know how much your property is worth and who”ll want it. They know the best ways to reach the market and they have the resources to do it. A property manager with some real marketing experience can earn you thousands every year, just with an intelligent marketing campaign.
Rental legislation is constantly changing. It’’s important that you know your rights as well as the rights of your tenants. But most people don”t even know where to start looking.
Property managers work with tenancy legislation every day. They know all the ins and outs, as well as the pitfalls and loopholes. They”re experienced in all aspects of lease negotiation - from bond to maintenance agreements to eviction. Most importantly, they”ll protect your rights as a landlord.
*** Get Good Tenants to Rent your Property ***
Most good tenants will only rent through property managers. The whole process is much more streamlined and convenient.
Payments can be made electronically, their questions can be answered quickly, and everything can be done during business hours.
The opposite is true of bad tenants. They target privately managed rentals, because that’’s generally all they can get. Property managers chase down and validate every reference, and they get to know problem tenants.
They do everything possible to provide you with a hassle-free investment because they know the eviction process is every landlord’’s worst fear. You can”t just kick someone out without notice. The whole process can take months.
But if you”re unlucky enough to end up with a problematic tenant, a property manager will manage the whole eviction process - including all dealings with the problem tenant.
Undoubtedly, you can juggle all of these elements yourself, and you”ll save yourself a small management fee… But what’’s the cost? Do you want to work for your investment or do you want it working for you?
About The Author
Mary is the founder and MD of Mary Waring Associates Ltd, set up in response to the number of people she met who wanted to acquire a residential buy to let portfolio. Learn everything you need to get started with your first buy to let property here: Mary Waring website
Mary is:
* a successful property investor
* a highly experienced independent mortgage adviser
* a Chartered Accountant with experience as FD of a property company
