The Lazy Guide to Making Money - 9 Reasons Why Landlords Are Using A Management Service

61 % of landlords now opt for a property manager, it’s an increasing trend. When I get asked by new landlords, I always recommend a management service over going in alone. Not only does it help you to create a passive income it also helps to mitigate risks and can save you money long term. 

Time - Is a luxury most people don’t have. Using a property manager relieves you of the responsibility and you can relax knowing it is all taken care off. No phone calls in the middle of the night, disasters needing immediate response, rent collecting, chasing payments, arranging maintenance or regular inspections to name just a few. Without an agent it can sometimes feel like a full-time job.

A Full House - Having someone in your rented property is the most important part of renting. When you have no tenant in the property you have no income. An elite management company will be able to fill the property much faster than doing yourself. They have access to post your property on all the online property websites such as Rightmove and Zoopla. 90% of home finders search online so being able to get on those websites are a key to success and unfortunately something you cannot do on your own.

Experience – Letting agents should know the industry inside and out as it is their area of expertise. You go to the dentist because they specialise in teeth. Let a managed service deliver on what they do best.

Passive Income - Sounds too good to be true? I assure you it’s not. A letting agent takes on all the responsibility so that your property can make you money without your involvement. It’s takes away the stress associated with renting a property making it a perfect supplement to your income.

It’s Not What You Know It’s Who You Know – Every property at some point will need some type of maintenance. Property managers have a catalogue of contacts for every eventuality, even better they can often get better rates than you can by arranging it yourself and they can then pass that saving onto you.

Higher Rent - A property manager knows the markets and knows how much they can push the rents to make sure you are receiving the maximum returns. A good property manager can pay for itself.

Keeping you on the right side of the Law – The government keep moving the goal posts for landlords. If anything is missed a tenant could choose to take legal action which is expensive and ruins any reputation you have built. A managed service insures you are always compliant with the legislation so there is one less thing to worry about. 

Better Tenants - Good tenants in the long run save you money, they pay rent on time and look after the property. One of the key roles of a management company is to screen all potential tenants this vetting process makes sure they are right. It insures they are capable of paying the rent and can look into their previous renting history. Good property managers will be able to work out if they are a good match for the property, they are experienced match makers.

Get Their Hands Dirty - When things go wrong you wish you had a property manager. They deal with the problems so you don’t have to, you won’t be faced with any late-night emergencies, complaints or arguments about rent not being paid. They even follow the eviction process if it comes to that.

As a landlord you are in the driver’s seat to negotiate the terms that suit you and secure a competitive rate, especially if you have a portfolio of properties. Often there are different management packages but for a fully managed property you should be looking at rates between 10-15 %. If you are going to use a letting agent please do you research and get a good one. I know from experience not all letting agents are the same, ask other landlords in the area for advice. Local agents often are better than national chains as they usually have better knowledge of the local market. Also, as they are usually a smaller scale you are more important to them.

For more property information go to www.alderleyedgepropertymarket.com.

Or if you have any specific questions or would like any more advise on finding the best letting agent for you please feel free to get in touch - [email protected]